pension release

dlet

I'm 56 and years ago contributed to a unit linked pension with Abbey Life - under old pension rules, when charges were very high.The pension was missold. It's only a small amount (15K). It's performed very badly -particularly in view of the 5% charges, Abbey Life are v.unhelpful, and won't let me transfer my pension unless I pay almost 20% in transfer charges.

I'd like to release my pension and place it with a better provider. In view of my age, could I get the pension released for retirement - and pay it in to a better provider without paying all the charges? I've only 3 and a half years to go to retirement, but intend to defer taking the pension - so the quality of investment / charges matter to me.

Any advice welcome

EdInvestor

What is the Normal retirement Date on the contract (60,65?)At that point there should be no charges to pay.

Also, at age 60, if you have no other pensions except state, you may be able to take the pension in cash.

dunstonh

The pension was missold

In which case, any redress you may still have to be awarded may be lost if you transfer.

It's performed very badly -particularly in view of the 5% charges

Strange that. Whilst Abbey are not cheap they use a unit linked fund range and their funds are typically around sector averages.

Abbey Life are v.unhelpful, and won't let me transfer my pension unless I pay almost 20% in transfer charges.

That is a contract event and nothing to do with being unhelpful. IIRC they drop the penalty at age 60 onwards.

I'd like to release my pension and place it with a better provider. In view of my age, could I get the pension released for retirement - and pay it in to a better provider without paying all the charges?

ALmost certainly a bad move given your timescale of 3.5 years unless you intend to have a later commencement date.

so the quality of investment / charges matter to me.

On the basis of a few lines (which is basically no info at all), i'm not sure you have the skills to decide what a good investment is or not. Make sure you dont do something that costs you more in the long run.

You need to do a simple TVAS comparing the Abbey to the alternatives to your selected retirement age to find out what the critical yield is. If you think the alternatives can achieve that critical yield then go for it. If not then you are better staying put.

However, you should also investigate the investment funds on offer from Abbey as that may be the cheaper option. It may be that you stay until penalty free then move or maybe Abbey isnt as bad as you think (often the intial charge is high with them but the annual charges are low. So, you dont pay into it but keep what you have there.

dlet

Thanks - v helpful. I have already dealt with the misselling, so that's not current, - the verbal undertakings made by the Abbey Life rep. about charges haven't checked out - pension was sold as having a charge basis particularly helpful to women who stop / start contributions, and there are no records of the meeting when signed up.

My contractual retirement age is 60 - so it's probably best to hang on and transfer at that stage

Thanks for your advice