Screwed up....I think....

Retired_I.F.A.

Would any IFA advise the OP to opt for drawdown anyway consideing what Dunstonh said elsewhere about ifa's nowadays having to take the IQ of the client into account in the first place?

Pre regulation brokers/salesmen/agents whatever loved someone who would not read a simple contact, today they are more likely to show them the door.

EdInvestor

Retired_I.F.A. wrote: »

Would any IFA advise the OP to opt for drawdown anyway consideing what Dunstonh said elsewhere about ifa's nowadays having to take the IQ of the client into account in the first place?.

This just shows how inadequate the regulatory guidance on drawdown is.This lady did not actually want to do standard ordinary drawdown (leaving a pension fund invested and drawing an income from it.

.She just wanted to extract her tax free cash and leave the rest of the money invested and not draw an income from it. That is, the risk level of the remaining fund would be exactly the same as the exisiting risk level of the unvested pension.

It's quite likely that when she eventually retires, she would convert the drawdown fund into an annuity - at which point she would be likely to have a much higher income, as she would be older and her fund would no doubt be bigger..

Yet so called 'advice guidance' says that her plan to go into no-income drawdown is more risky than taking an annuity now, which has locked a 54 year old woman into the same low level of income for as long as 40 or 50 years ( by which point it will be completely worthless due to inflation: it will be worth half what it is now in 20 years at current inflation rates.)

You wonder who makes up these rules and decides on rubbish "advice" like this.IMHo it's their IQ that needs investigation, not that of their clients. :mad:

firesidemaid

hi there

have just read through this thread and i don't know what to say really......i'm shocked by some of the unhelpful responses, although i know the experts on here can't give direct advice re. what to do......

do you have any other pension funds eg. occupational either currently or previously?

just one thought - if you have the chance to buy back any years in a good final salary occupational pension scheme, that might be an option.

o/wise if you are stuck with this outcome, speak to an independent financial advisor (ask around friends/colleagues etc) - at least you will have the chance to put this sum away tax-free until you need it.

good luck and let us know how you get on x

jeannieblue

Thank you sazzacat.

I know i got the 25% tax free sum - which is what I asked for and have plans for that - pay off debts for one!

Its the monthly amount that I am getting now (which didn't want til I retired!) - surely that must be taxable as I am working full time?

noh

jeannieblue wrote: »

Thank you sazzacat.

I know i got the 25% tax free sum - which is what I asked for and have plans for that - pay off debts for one!

Its the monthly amount that I am getting now (which didn't want til I retired!) - surely that must be taxable as I am working full time?

Yes it is taxable. Tax will be deducted at source by the Prudential. They will send you a payslip, detailing the payment and tax deducted, every time a payment is made to you.

Nigel

jeannieblue

They made a payment on the 9th Jan - got a letter yesterday, which is when I found out that I am now drawing my pension - but it didn't mention tax nor have I received a payslip - as yet.

I'm hoping to receive email from them over next day or so and hope my bosses will spare me for an hour or so to call them - took me just under hour on hold every time I called them, but as it was my lunch hour, it was probably theirs too - hence such a long hold time I guess.

dunstonh

I have no inclination to seek an IFA because feel a bit put off to be honest. Sorry if that offends anyone but you should really listen to yourselves. Its not pleasant, helpful or kind. You obviously know your stuff and maybe it would be an idea to put this across in a different way? This forum could be so helpful.

I'm sorry you dont like what I have said. To be honest, I cannot see anything in my text that could offend you or that is incorrect.

The fact you dont like the response is not something I can avoid.

The Pru are not there to advise you. They send you out the paperwork and you make your decision to use an adviser or not.

Here are some of the paragraphs on the pru documents:

To buy an annuity from Prudential, please refer to our "What you need to do next" guide, which explains what you need to do to buy a Prudential Annuity and what forms you need to complete.

This quotation shows your annuity options and the income you can receive. Please select the option that best suits your circumstances by ticking the appropriate box below. Please read this together with the "key features of the prudential guaranteed pension annuity".

Your annuity will start on xxxxxxx and will be payable to you monthly, quarterly, half yearly or annually, depending on the frequency of payment you have chosen.

in the declaration....

I have selected teh income option that best suits me circumstances and ticked the appropriate box.

I have read and understood the key features of the prudential guaranteed pension annuity document

I have read and understood the section "detailed information about your annuity income options"

I have read and understood the "important information about your annuity" section which includes the data protection notice, the information provided notice and liability disclaimer.

I have read the "how do I apply for my annuity?" and enclose the relevant documents as requested.

---

How do I know all that? Well I just looked at the one on my desk for someone who I am seeing next week.

BTW, the cancellation rights are 30 days. Are you sure you are not in that period still?

Retired_I.F.A.

Which is it Dunstonh, I forget. 30 days from the date of the proposal form, from the date the plan started ie the day she had the TFC or is it from some other date?

dunstonh

Retired_I.F.A. wrote: »

Which is it Dunstonh, I forget. 30 days from the date of the proposal form, from the date the plan started ie the day she had the TFC or is it from some other date?

With annuities it is 30 days from the issue of the cancellation form. Unlike other products, these are issued with the illustration and application. The cancellation form from Pru has the issue date on it.

Its sad that the !!!!!ing got in the way here. I have no inclination to seek an IFA because feel a bit put off to be honest. Sorry if that offends anyone but you should really listen to yourselves. Its not pleasant, helpful or kind. You obviously know your stuff and maybe it would be an idea to put this across in a different way? This forum could be so helpful.

You know what, it does offend me. I see nothing wrong with the information or style of posting i have done.

It is an irony that had you seen an IFA then it wouldn't have happened and yet you are saying you wouldn't use one. That is your choice but if you don't use an adviser, you cannot complain about advice. Pru issue the forms, you either read them or you don't but you take the consequences and liability for your actions. Prus paperwork is actually one of the best out there. There is a lot of it but the one thing it focuses on more than anything else is income. It also covers tax and all the other things you are now asking on here.

How much of the paperwork did you actually read before signing the forms?

jeannieblue

That's very clear indeed - I would've understood that very well - if I'd been sent one.