Taking personal pension lump sum process/timescale.....

13

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  • archer123
    archer123 Posts: 63 Forumite
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    phoebe1989seb
    It is strange why Pension providers appear so difficult to do business with. I had a similar response from Phoenix - low performing fund - wanted to consider my options - including taking a 25% tfls.
    It was like hitting my head against a brick wall!
    So, like you I'll just take the fund and move to a more responsive provider, or maybe probably DIY.

    I understand the caution about being seen to give advice. But, are they in the pension business, or not?
  • dunstonh
    dunstonh Posts: 116,346 Forumite
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    archer123 wrote: »
    phoebe1989seb
    It is strange why Pension providers appear so difficult to do business with. I had a similar response from Phoenix - low performing fund - wanted to consider my options - including taking a 25% tfls.
    It was like hitting my head against a brick wall!
    So, like you I'll just take the fund and move to a more responsive provider, or maybe probably DIY.

    I understand the caution about being seen to give advice. But, are they in the pension business, or not?

    Phoenix are a purchaser of dead or unwanted insurance company books. They deal in legacy plans mostly set up decades ago.

    Most of their plans exist on hard coded systems which cannot offer many or all the modern options.

    They are not in the advice business and are not allowed to give advice. They can only act upon instruction.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • phoebe1989seb
    phoebe1989seb Posts: 4,452 Forumite
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    Earlier this week DH spoke with the Pensions Advisory Service. They told him he can challenge both the Pru's insistence that he see one of their financial advisors and their request that he completes a 'budget planner's asking for our income and expenditure info.

    He's going ahead with the meeting with the Pru FA anyway just to see what they have to say, but is also still considering the HL SIPP.
    Mortgage-free for fourteen years!

    Over £40,000 mis-sold PPI reclaimed
  • dunstonh
    dunstonh Posts: 116,346 Forumite
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    Earlier this week DH spoke with the Pensions Advisory Service. They told him he can challenge both the Pru's insistence that he see one of their financial advisors and their request that he completes a 'budget planner's asking for our income and expenditure info.

    The Pension Advisory service appears to have misunderstood what is going on here.

    Pru retail its products either via IFAs or its own in-house sales force. That is the only way to buy their products. It isnt the "product" that requires those things. It is to comply with FCA regulations on advice. I cannot imagine the Pension Advisory Service would suggest Pru disregard the FCA's rules unless they misunderstood what you were describing.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • phoebe1989seb
    phoebe1989seb Posts: 4,452 Forumite
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    dunstonh wrote: »
    The Pension Advisory service appears to have misunderstood what is going on here.

    Pru retail its products either via IFAs or its own in-house sales force. That is the only way to buy their products. It isnt the "product" that requires those things. It is to comply with FCA regulations on advice. I cannot imagine the Pension Advisory Service would suggest Pru disregard the FCA's rules unless they misunderstood what you were describing.

    Thanks, dunstonh....

    Strange, because I was listening to the conversation and that was clearly what was said.

    However, the confusion may have arisen because DH has now decided to take the full amount out (not just the tax-free lump sum) - would that have made a difference to the advice given by the Pensions Advisory Service?
    Mortgage-free for fourteen years!

    Over £40,000 mis-sold PPI reclaimed
  • dunstonh
    dunstonh Posts: 116,346 Forumite
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    However, the confusion may have arisen because DH has now decided to take the full amount out (not just the tax-free lump sum) - would that have made a difference to the advice given by the Pensions Advisory Service?

    Yes that would make a difference as it no longer requires the purchase of a new product. Many Pru legacy plans do support UFPLS. They dont support drawdown. Only if you have one that doesn't support UFPLS and you wanted Pru to facitilate the transaction would this be needed.

    The logical option if it is a Pru plan that doesnt support UFPLS is to transfer it to a provider that does and has no charges for doing UFPLS.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • xylophone
    xylophone Posts: 44,375 Forumite
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    DH has now decided to take the full amount out (not just the tax-free lump sum) -

    Is he aware of the tax consequences?
  • phoebe1989seb
    phoebe1989seb Posts: 4,452 Forumite
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    edited 10 July 2019 at 10:59AM
    Update -

    Three weeks ago we met with the financial advisor from the Pru and informed him of DH's intention to withdraw his entire pension pot. The FA said he had two options -

    1) for the FA to do the paperwork at a cost of £420. This would require a second meet up.

    2) for DH to phone the Pru (at a cost of £0) and the paperwork (which he said was complex) would be sent for DH to fill in.

    DH opted for the Pru FA to do the paperwork as he has slight hearing issues on the phone exacerbated by the fact we live in an area with a terrible mobile signal.

    He asked both of us a number of questions including how much we had in our current account(s) and explained that they would need to carry out a soft credit check on us both for ID purposes. We both felt this was rather intrusive but obviously part of their process.

    He told us he'd be recommending the Pru release the funds but that if DH's request to take his entire pot was declined, he could appeal the decision as legally they couldn't stop him.

    Yesterday DH had a call from the Pru FA to say that the request has to be done over the phone because DH falls into the category of clients that don't wish to reinvest their pension pot, ie in ISAs etc which he'd not mentioned when we met up three weeks ago. He didn't say the request had been turned down, but merely that this would be a quicker way of releasing the funds.

    He again reiterated that legally the Pru couldn't prevent him from withdrawing his entire pot.

    It feels as though we've wasted three weeks. DH turned 55 last week, btw.

    Moreover, from past experience the Pru are notoriously hard to deal with over the phone which will not be helped by DH's hearing issues. He was told he needs to call the number on his pension plan, but last time he did this he was fobbed off by the call centre who said the only way to get an answer was by meeting with the Pru FA.....

    I get the distinct feeling they are trying to hold onto his money for as long as possible :(
    Mortgage-free for fourteen years!

    Over £40,000 mis-sold PPI reclaimed
  • xylophone
    xylophone Posts: 44,375 Forumite
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    He asked both of us a number of questions including how much we had in our current account(s) and explained that they would need to carry out a soft credit check on us both for ID purposes. We both felt this was rather intrusive but obviously part of their process.

    I am absolutely mystified. Why is such a meal being made of what should be a perfectly simple process?
  • phoebe1989seb
    phoebe1989seb Posts: 4,452 Forumite
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    edited 10 July 2019 at 3:37PM
    xylophone wrote: »
    I am absolutely mystified. Why is such a meal being made of what should be a perfectly simple process?

    I really don't know!

    I understand that initially the Pru thought DH wanted to transfer the funds into a drawdown product - hence the meeting with their FA - but at the outset of the meeting DH explained his intentions had changed. We assumed (naively, I guess) that all the questions about our finances/carrying out a soft credit check were a necessary hurdle.....

    I think perhaps DH needs to have another chat with the Pensions Advisory Service.
    Mortgage-free for fourteen years!

    Over £40,000 mis-sold PPI reclaimed
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