Aegon has paid out both 25% tax free and 75% taxable

corky2

I requested 25% tax free and the balance to go into a drawdown pension, but Aegon has paid out £7,000 and I've paid £2k in tax (with a note, "take it up with HMRC")

Can this be reversed?

I am still paying into a pension through my job.

QrizB

If this is Ageon's mistake, they've really messed up.

Have you contacted them at all since the payment was made?

corky2

This is their response "I understand, and it seems there may have been a miscommunication.
When you make a request through the portal, it is processed as a partial withdrawal, and the portal provides information about any tax implications. To take only the 25% tax-free amount, as mentioned earlier, this is a separate process which involves booking an appointment with Aegon Assist and making changes to your current plan, so it can’t be done via the portal."

corky2

OMG - how do I reverse this mess!

JoeCrystal

Get in touch with Ageon (I know I know, their responses times are some of the worse I seen!), ring them up, you need to explain it clearly and tell them to fix the errors. But, I wonder how clear is their information are to be honest since they seems to think their portal got enough information to make it clear to you what you are doing!

XzavierWalnut

https://forums.moneysavingexpert.com/discussion/comment/82048924#Comment_82048924

I have an Aegon drawdown and took the 25% tax free about 2 years ago. I did not book an appointment with anyone.

Marcon

https://forums.moneysavingexpert.com/discussion/6674016/aegon-has-paid-out-both-25-tax-free-and-75-taxable

Taking a purely pragmatic view, does triggering the MPAA actually have any impact? If the contributions going in to your workplace pension are currently under £10k including any tax relief on your contributions, and taking employer contributions into account, and aren't likely to exceed that, things might not be as bad as you fear.

corky2

https://forums.moneysavingexpert.com/discussion/comment/82048962#Comment_82048962

Marcon - thank you and you are right. It was just such a shock when I’m usually so careful.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/82048951#Comment_82048951

Aegon have about 5 current pension plans available and countless number of legacy plans.

A number of the legacy plans do not support drawdown and UFPLS is the only option available other than transferring to one of their modern plans.

ThreeScoreAndOn

On reversing it, ask Aegon directly whether there's a cancellation / cooling-off right on this transaction. a new drawdown/benefit-crystallisation decision often carries a 30-day cancellation window, and if it applies you may be able to return the money and undo it. Get that question answered in writing before you do anything else. If they are unco-operative on this, Put your complaint to Aegon in writing. if they don't resolve it you can escalate to the Financial Ombudsman, and MoneyHelper can talk you through the rules free: https://www.moneyhelper.org.uk/en/pensions-and-retirement

DRS1

I would not get too hopeful about cancellation rights. There was a lot of stuff about them in 2024 when people took their tax free lump sums and then decided to put them back when the law didn't change.

Tax-free pension withdrawals: HMRC and FCA clarify cancellation rights | AJ Bell Investcentre