Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • worried bear
    • By worried bear 4th Mar 18, 6:26 PM
    • 7Posts
    • 2Thanks
    worried bear
    Trouble accessing pension
    • #1
    • 4th Mar 18, 6:26 PM
    Trouble accessing pension 4th Mar 18 at 6:26 PM
    I have a small pension with Ageon that is worth approx 32,000.

    Im unable to return to work after illness and filled the necessary paperwork to access the monies. Ageon have told me that I can only access the monies through a financial advisor. I did speak to an financial advisor who said as the pot is so small, they wouldn't deal with me. Just about to go back them, but any advice anyone can give me would be appreciated.
Page 1
    • atush
    • By atush 4th Mar 18, 9:59 PM
    • 16,709 Posts
    • 10,412 Thanks
    atush
    • #2
    • 4th Mar 18, 9:59 PM
    • #2
    • 4th Mar 18, 9:59 PM
    How old are you?

    How severe is your illness (ie do you have a prognosis of less than 12 months?)
    • xylophone
    • By xylophone 4th Mar 18, 10:16 PM
    • 25,374 Posts
    • 14,970 Thanks
    xylophone
    • #3
    • 4th Mar 18, 10:16 PM
    • #3
    • 4th Mar 18, 10:16 PM
    Ageon have told me that I can only access the monies through a financial advisor.
    Does the pension have "safeguarded benefits"?

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf
    • Linton
    • By Linton 4th Mar 18, 10:16 PM
    • 9,387 Posts
    • 9,519 Thanks
    Linton
    • #4
    • 4th Mar 18, 10:16 PM
    • #4
    • 4th Mar 18, 10:16 PM
    Is the pension a simple D.C. pension pot with no guarantees? If so you can find a pension provider who will allow you access and get them to transfer-in your Aegon pension. You wont need an IFA. You normally need to be 55 to access a pension.

    A SIPP. with most of the providers often discussed on this forum will do the job.
    • dunstonh
    • By dunstonh 4th Mar 18, 11:06 PM
    • 92,652 Posts
    • 59,975 Thanks
    dunstonh
    • #5
    • 4th Mar 18, 11:06 PM
    • #5
    • 4th Mar 18, 11:06 PM
    Ageon have told me that I can only access the monies through a financial advisor.
    That is because aegon retail their product via advisers.

    I did speak to an financial advisor who said as the pot is so small, they wouldn't deal with me.
    Thank the EU, the FCA and the compensation culture for that. EU for MiFIDII (that makes dealing with small value cost ineffective) and FCA for still treating drawdown as a high-risk transaction for advisers to carry out and the compensation culture as we already have claims companies cold calling people trying to put in fake complaints.

    Your best bet is to transfer to a DIY provider.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • worried bear
    • By worried bear 5th Mar 18, 9:28 AM
    • 7 Posts
    • 2 Thanks
    worried bear
    • #6
    • 5th Mar 18, 9:28 AM
    • #6
    • 5th Mar 18, 9:28 AM
    Thank you so much for all your replies and wealth of knowledge. I really am a novice in this field.

    I am 54, had a brain injury, its not terminal. The pension was through my last employer and as far as I can see there was no guarantee

    Will digest further this information and see what best way to proceed
    • pip895
    • By pip895 5th Mar 18, 10:24 AM
    • 576 Posts
    • 321 Thanks
    pip895
    • #7
    • 5th Mar 18, 10:24 AM
    • #7
    • 5th Mar 18, 10:24 AM
    HL (Hargreaves Lansdowne) have a very good reputation for customer service - they are not the cheapest but will work out far cheaper on that sort of pot size than a IFA, even if you could find one to advise you.

    They will arrange the transfer and once you are 55 you can take the money by flexible drawdown.

    Cheaper options are available, but you are talking small fractions of a percent and you could probably do with the minimum hassle.
    • atush
    • By atush 5th Mar 18, 10:39 AM
    • 16,709 Posts
    • 10,412 Thanks
    atush
    • #8
    • 5th Mar 18, 10:39 AM
    • #8
    • 5th Mar 18, 10:39 AM
    Well at 54 you cant get the money now.

    And before you do try and get it at 55, see how it will affect any benefits you are eligible for re your injury.
    • Malthusian
    • By Malthusian 5th Mar 18, 11:55 AM
    • 4,113 Posts
    • 6,451 Thanks
    Malthusian
    • #9
    • 5th Mar 18, 11:55 AM
    • #9
    • 5th Mar 18, 11:55 AM
    Well at 54 you cant get the money now.
    Originally posted by atush
    Yes he can, subject to the scheme rules. "Im unable to return to work after illness" https://www.pensionsadvisoryservice.org.uk/about-pensions/retirement-choices/ill-health-retirement

    But your advice to check whether taking the money out will affect eligibility for means-tested benefits is very good advice.
    • worried bear
    • By worried bear 5th Mar 18, 12:50 PM
    • 7 Posts
    • 2 Thanks
    worried bear
    Thanks again for the additional comments.

    To clarify, I AM able to access my pension early, due to ill health.

    I have researched the best option and well aware of the tax implications and how it could potentially affect my benefits.

    Having spoken to Ageon this morning, they are referring me onto the next stage of accessing my pension.
    • worried bear
    • By worried bear 5th Mar 18, 12:52 PM
    • 7 Posts
    • 2 Thanks
    worried bear
    Well at 54 you cant get the money now.

    And before you do try and get it at 55, see how it will affect any benefits you are eligible for re your injury.
    Originally posted by atush
    Yes I can. A report from my neurologist, give me early access.
    • worried bear
    • By worried bear 7th Mar 18, 10:30 AM
    • 7 Posts
    • 2 Thanks
    worried bear
    So Ive been told that, regardless of my age, is too small to access flexi drawdown. I can however, take the whole amount. Which leaves me with a hefty Tax Bill.

    I spoke to Hargreaves Lansdown who have said I can't access a drawdown til I am 55 (does this mean i cant access 25% tax free?) i don't fit in the terminal illness.

    Sorry for confusion, Ageon saying yes you could have accessed the drawdown, but the pot isn't big enough to another company saying you cant til your 55
    • Linton
    • By Linton 7th Mar 18, 11:37 AM
    • 9,387 Posts
    • 9,519 Thanks
    Linton
    It would seem from what you have said that the company pension is administered by Aegon and under the company pension scheme rules you can get early access to the pension. But Aegon only support limited access.

    However when you transfer to HL you lose any special rights of the company scheme and so are constrained by the general rather more stringent rules. If you do transfer to HL and wait until you are 55 you can access the pension in any way your want.

    So you simply have to choose one option or the other.
    • Lungboy
    • By Lungboy 7th Mar 18, 1:13 PM
    • 1,376 Posts
    • 1,319 Thanks
    Lungboy
    HL do allow early access to their Vantage SIPP on ill health grounds (according to an email I have from them) but only if you can't do any work at all.
    Last edited by Lungboy; 07-03-2018 at 1:15 PM.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

54Posts Today

3,126Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin