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  • FIRST POST
    • allrounder55
    • By allrounder55 4th Aug 18, 11:07 AM
    • 4Posts
    • 0Thanks
    allrounder55
    Talisman Pension
    • #1
    • 4th Aug 18, 11:07 AM
    Talisman Pension 4th Aug 18 at 11:07 AM
    Hello all, i have the above Talisman pension, which is now through Royal London. They have recently written to me with an offer of a new scheme which gives existing plan holders more choices. This is being implemented by the government to put pressure on pension providers to offer more freedom on annuities since the new act in 2015. I can either opt out to keep the GAR or to opt in for the new scheme which will result in an income uplift, which means i will lose the benefit of the GAR. My circumstances have changed as a result of a heart attack. Im hoping my life expectancy shouldnt be reduced. But the plan is for a single life plan. So when i pass away my partner will not receive any pension. So i was looking at the income uplift which is considerable. By taking the whole pot after the uplift will mean i have a cash pot which i can reinvest into a managed fund. on the event of my death this pot can be inherited by my partner. I know the tax implications and we would lose entitlement to working tax credits, The pension fund isnt a large one. I wouldnt buy another annuity as the rates are poor, but my investment would be at risk of either going up or down. I discussed the option of income draw down as well with my financial advisor who advised me to keep the GAR. Does anyone have any advice in relation to my options? I just want my money to do the best it can. I would have kept the GAR but with the plan being single has given me doubts.
    Thank you.
Page 1
    • Brynsam
    • By Brynsam 4th Aug 18, 12:42 PM
    • 1,676 Posts
    • 1,230 Thanks
    Brynsam
    • #2
    • 4th Aug 18, 12:42 PM
    • #2
    • 4th Aug 18, 12:42 PM
    Have you asked your adviser why they recommend that you keep the GAR given your particular circumstances and concerns? If they have given detailed reasons, why do you disagree with them - and have you reverted to the adviser to discuss?

    You say this 'isn't a large pension fund' (that could mean anything!) and that you will lose entitlement to working tax credits. That alone could be a good reason to stick with the GAR.

    If all this is driven by health concerns - entirely understandable if you are recovering from a heart attack - have you discussed with your doctor whether the impact on life expectancy can be quantified in any realistic way?
    • pioneer
    • By pioneer 4th Aug 18, 1:58 PM
    • 239 Posts
    • 275 Thanks
    pioneer
    • #3
    • 4th Aug 18, 1:58 PM
    • #3
    • 4th Aug 18, 1:58 PM
    I too have a talisman "paid up" epp; no further contributions poss; 4 yrs to maturity. Its been a bit of a dead duck for years ever since it was taken over from scottish life. I haven't a clue what to do with it. Prob transfer to sipp on maturity.

    See also https://forums.moneysavingexpert.com/showthread.php?t=5863078
    "Didn't I try to Warn them I said !"
    David Essex War of the Worlds.

    "Thats Ancient History, Been There! Done That!" Hercules
    • dunstonh
    • By dunstonh 4th Aug 18, 3:04 PM
    • 95,390 Posts
    • 63,029 Thanks
    dunstonh
    • #4
    • 4th Aug 18, 3:04 PM
    • #4
    • 4th Aug 18, 3:04 PM
    This is being implemented by the government to put pressure on pension providers to offer more freedom on annuities since the new act in 2015.
    No its not. It is being driven by Royal London as a choice they are making.

    I can either opt out to keep the GAR or to opt in for the new scheme which will result in an income uplift, which means i will lose the benefit of the GAR.
    its not an income uplift. You give up the GAR for an increase in value.

    But the plan is for a single life plan. So when i pass away my partner will not receive any pension. So i was looking at the income uplift which is considerable.
    The Talisman plans allow for spouse rates adjusted back from the GAR.

    I discussed the option of income draw down as well with my financial advisor who advised me to keep the GAR. Does anyone have any advice in relation to my options?
    The adviser is the one that can advise. People on the internet who know nothing about you can give opinion or mislead.

    I would have kept the GAR but with the plan being single has given me doubts.
    Dont go for the single life rate then. Go with 100% sposue rate instead.
    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.
    • allrounder55
    • By allrounder55 6th Aug 18, 10:35 AM
    • 4 Posts
    • 0 Thanks
    allrounder55
    • #5
    • 6th Aug 18, 10:35 AM
    Talisman Pension
    • #5
    • 6th Aug 18, 10:35 AM
    I have been considering the advantages and disadvantages of the plan
    Advantages
    1: It is guaranteed income until my death.
    2: High gar rate (8.5%)

    Disadvantages.
    1: It does not transfer over to my spouse if we can arrange that the value of the amount paid yearly drops.
    2: There is no cash pot the pension fund is lost to the annuity.
    3: I am in ill health my life expectancy may not be as long so i would not get the return back.
    I am looking to draw the whole pot down when i receive the income increase in exchange for the gar. My financial advisor says this is financial suicide. But i am going to use the money to purchase another property to redevelop.I dont really care what he says as he will receive a good commission if my annuity went ahead. the money will not be lost it is being put to good use. Thank you for all your advice but ive now made my mind up.
    • dunstonh
    • By dunstonh 6th Aug 18, 10:59 AM
    • 95,390 Posts
    • 63,029 Thanks
    dunstonh
    • #6
    • 6th Aug 18, 10:59 AM
    • #6
    • 6th Aug 18, 10:59 AM
    I dont really care what he says as he will receive a good commission if my annuity went ahead.
    No he wouldnt. Commission hasnt existed since 2013.

    the money will not be lost it is being put to good use.
    As a taxpayer, I thank you for your massive contribution to the treasury.

    Thank you for all your advice but ive now made my mind up.
    I suspect it was before you even started this thread. Makes me wonder why you bothered wasting our time.
    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.
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