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  • FIRST POST
    • peachynat2110
    • By peachynat2110 15th Apr 18, 1:03 PM
    • 5Posts
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    peachynat2110
    Pension provider discrimination
    • #1
    • 15th Apr 18, 1:03 PM
    Pension provider discrimination 15th Apr 18 at 1:03 PM
    My dad has paid into a private pension for years and years. Unfortunately he was diagnosed with Ms 20 years ago and went into a home last January. This year he is 65 and it's time to claim his private pension.
    On discussion with the pension provider, prudential, we asked to take the pension out in small pieces. The adviser on the phone told him and mum that to do this, they'd have to speak to a prudential financial adviser, but one would not come out as dad is now in long term care. He has capacity and can speak and make decisions.. They told us we can get our own financial adviser (and have to pay them) but I feel annoyed that this is the other alternative.
    We made a formal complaint, but the prudential aren't following this up as they're following their policies and not doin anything wrong.
    How can discriminating against a man who Always paid his pension OK? If he was ill but at home, they would come out.
    Where do we stand with this? I think it's terrible
Page 1
    • xylophone
    • By xylophone 15th Apr 18, 2:02 PM
    • 26,121 Posts
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    xylophone
    • #2
    • 15th Apr 18, 2:02 PM
    • #2
    • 15th Apr 18, 2:02 PM
    Does the pension have any safeguarded benefits?

    If not , and this is a standard DC pension, he can exercise his right to transfer to another arrangement which would facilitate drawdown?

    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf
    • PeacefulWaters
    • By PeacefulWaters 15th Apr 18, 2:09 PM
    • 8,318 Posts
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    PeacefulWaters
    • #3
    • 15th Apr 18, 2:09 PM
    • #3
    • 15th Apr 18, 2:09 PM
    Sounds like it's a service Pru don't offer rather than discrimination.

    Subject to the post above, identify a provider that will do what you want and transfer to them without advice.
    • cloud_dog
    • By cloud_dog 15th Apr 18, 2:12 PM
    • 3,800 Posts
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    cloud_dog
    • #4
    • 15th Apr 18, 2:12 PM
    • #4
    • 15th Apr 18, 2:12 PM
    My dad has paid into a private pension for years and years. Unfortunately he was diagnosed with Ms 20 years ago and went into a home last January. This year he is 65 and it's time to claim his private pension.
    On discussion with the pension provider, prudential, we asked to take the pension out in small pieces. The adviser on the phone told him and mum that to do this, they'd have to speak to a prudential financial adviser, but one would not come out as dad is now in long term care. He has capacity and can speak and make decisions.. They told us we can get our own financial adviser (and have to pay them) but I feel annoyed that this is the other alternative.
    We made a formal complaint, but the prudential aren't following this up as they're following their policies and not doin anything wrong.
    How can discriminating against a man who Always paid his pension OK? If he was ill but at home, they would come out.
    Where do we stand with this? I think it's terrible
    Originally posted by peachynat2110
    Is he 65 yet, or is he 65 later this year?

    This may have a bearing on the information Prudential are (able to) providing.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • xylophone
    • By xylophone 15th Apr 18, 2:19 PM
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    xylophone
    • #5
    • 15th Apr 18, 2:19 PM
    • #5
    • 15th Apr 18, 2:19 PM
    Has your father obtained a state pension statement?

    https://www.gov.uk/check-state-pension
    • eranou
    • By eranou 15th Apr 18, 2:19 PM
    • 365 Posts
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    eranou
    • #6
    • 15th Apr 18, 2:19 PM
    • #6
    • 15th Apr 18, 2:19 PM
    This isn't discrimination

    Pru only sell products that can facilate flexible withdrawals through financial advisors. Their financial planning arm is not authorised to deal with long term care clients. Therefore the options available are to arrange it through an independent financial advisor or transfer the plan out to another provider.
    • peachynat2110
    • By peachynat2110 15th Apr 18, 2:34 PM
    • 5 Posts
    • 2 Thanks
    peachynat2110
    • #7
    • 15th Apr 18, 2:34 PM
    • #7
    • 15th Apr 18, 2:34 PM
    He is 65 in 2 weeks.
    It's frustrating that the only reason a financial adviser won't visit is because he's in a care home. If he was 2 miles away his own home, they'd visit
    • eranou
    • By eranou 15th Apr 18, 2:41 PM
    • 365 Posts
    • 241 Thanks
    eranou
    • #8
    • 15th Apr 18, 2:41 PM
    • #8
    • 15th Apr 18, 2:41 PM
    He is 65 in 2 weeks.
    It's frustrating that the only reason a financial adviser won't visit is because he's in a care home. If he was 2 miles away his own home, they'd visit
    Originally posted by peachynat2110
    It's not that they don't want to help it's the fact that there are regulations around providing advice to long term care clients which Pru are not authorised for.
    Last edited by eranou; 15-04-2018 at 2:46 PM.
    • dmelife
    • By dmelife 15th Apr 18, 2:48 PM
    • 39 Posts
    • 51 Thanks
    dmelife
    • #9
    • 15th Apr 18, 2:48 PM
    • #9
    • 15th Apr 18, 2:48 PM
    Advisers need a separate qualification to provide long term care advise. They are not doing anything wrong, they are not allowed to help.
    • PeacefulWaters
    • By PeacefulWaters 15th Apr 18, 2:50 PM
    • 8,318 Posts
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    PeacefulWaters
    He is 65 in 2 weeks.
    It's frustrating that the only reason a financial adviser won't visit is because he's in a care home. If he was 2 miles away his own home, they'd visit
    Originally posted by peachynat2110
    It seems highly unlikely that there's any need for financial advice.
    • dunstonh
    • By dunstonh 15th Apr 18, 6:18 PM
    • 93,915 Posts
    • 61,698 Thanks
    dunstonh
    On discussion with the pension provider, prudential, we asked to take the pension out in small pieces. The adviser on the phone told him and mum that to do this, they'd have to speak to a prudential financial adviser, but one would not come out as dad is now in long term care. He has capacity and can speak and make decisions.. They told us we can get our own financial adviser (and have to pay them) but I feel annoyed that this is the other alternative.
    Pru would not have been free either. So, both options would have cost.

    It is also not the only alternative. However, if you want to pay for someone to do the job for him then it will cost money.

    We made a formal complaint, but the prudential aren't following this up as they're following their policies and not doin anything wrong.
    They are not doing anything wrong. Your father wants to do a transaction that is not possible on his existing pension (Pru have some old plans that allow UFPLS but not all do. Transfer is a common requirement). So, he needs to transfer it to a new pension. Pru only sell their pension range via their own salesforce or intermediaries. They do not have a DIY distribution channel and are not required to set one up. The market is very much split between intermediary and DIY and most firms pick one or the other and do not deal in both.

    How can discriminating against a man who Always paid his pension OK? If he was ill but at home, they would come out.
    He is classed as a vulnerable individual and more imporantly, requires someone with a long term care authorisation from a regulatory point of view and restricted services typically do not deal in high-risk areas and Pru do not operate in this area. It is not discrimination.

    Where do we stand with this? I think it's terrible
    Unfortunately, its a misunderstanding on your part. Firms are not required to retail their products by all methods of distribution. Pru do not operate direct to consumer. Their in-house salesforce is classified as restricted and has limitations. A local IFA is an option but most IFAs choose not to use Pru. So, if your father really wants Pru, then he may need to persuade an IFA or be classed as an insistent client. IFAs would typically use better providers.

    Or alternatively, your father uses a company that operates in the direct to consumer market. (but that wont be Pru)

    It's frustrating that the only reason a financial adviser won't visit is because he's in a care home. If he was 2 miles away his own home, they'd visit
    They would have to hold the regulatory permissions to do that. They don't. So, can't. This is quite normal with restricted services.
    Last edited by dunstonh; 15-04-2018 at 11:15 PM.
    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.
    • xylophone
    • By xylophone 15th Apr 18, 7:06 PM
    • 26,121 Posts
    • 15,480 Thanks
    xylophone
    Your father has sorted out his state pension?

    Is he willing and able to manage his pension himself?

    For example, if he transferred to a SIPP, would he be happy about choosing his own investments?

    http://www.hl.co.uk/pensions/sipp/transfer-to-the-vantage-sipp

    If not, he might find an Independent Financial Adviser here

    https://societyoflaterlifeadvisers.co.uk/find-an-adviser/
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