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Pensions liberation

(11 Posts)
Aquiver Fri 13-May-16 19:57:18

Has anybody got any experience of pensions liberation - specifically the time it takes for pension providers to release the 25% tax free amount from pensions funds from the date of notifying/requesting this from the provider?

We wondered whether it took a few days / weeks / months(!) for months to be released.

Am posting for a friend (my pensions pot is mediocre!) blush

concertplayer Sat 14-May-16 09:55:38

There are loads of brokers etc out there who will do this but for commisson
They are the sort people who once you make an enquiry will phone endlessly
to get the deal and so they will do it asap (a few weeks?)
You must ask for t heir charges .
You need to check they are a member of the FCA
Contact the provider first yourself to see where the land lies but do not hold
your breath
Endless cynic I believe this is another money making racket -all the companies
are in it together somehow

dontcallmethatyoucunt Sat 14-May-16 21:36:02

Wow concert that's a lot of anger!

It does depend on the provider, but 5 days is about average.

Diddlydokey Sat 14-May-16 21:43:33

Please be very careful

Sunseed Sun 15-May-16 07:08:32

Depends on the provider and on the original scheme. Some require proof that you've received appropriate advice so process will need to be gone through first. Could take a few weeks overall.

dontcallmethatyoucunt Sun 15-May-16 09:29:32

Legally for a defined benefit scheme, if the value is over £30k you need independent advice. Small pots legislation covers pots in money purchase schemes up to £10k. All schemes must signpost the money advice service and pensions wise.

Remember if you access pots beyond £10k you activate the money purchase annual allowance and lose entitlement to pension tax relief (for contributions over £10k per annum).

I would certainly speak to the free advice first.

Pension scams impact transfers (the receiving scheme is fraudulent). Encashment, well that can be a tax issue, savings issue, income issue, benefits issue and frankly a bad idea. Assuming this has been considered and we are 'just' talking 'small pot' or 'triviality' then it can be quite quick.

concertplayer Sun 15-May-16 15:39:18

Don'tcall- I contacted 3 firms for quotes (not the 25% drawdown but something
related) I was emailed and phoned endlessly. Apparently when you make a Web
enquiry it automatically signals them to phone. I realise people do need to make
a living but rushing them into things is unwise. So I am suspicious.
My advice therefore is NOT to allow others who may gain to RUSH you
into things The Government has a service called Pensionwise. Use it

dontcallmethatyoucunt Sun 15-May-16 16:31:56

Concert, 3 firms NOT 3 providers, it's a very different thing. The OP says provider, you don't need a middle woman. I would never put details in the Internet, you're totally right, it attracts the vultures.

I am a Chartered Independent Financial Adviser and pension wise and the citizens advice service (where I volunteer) is the best first step for everyone. I send plenty of people to them.

BTW commission does not exist, it's illegal in pensions.

Sunseed Sun 15-May-16 19:51:40

A good financial adviser should not rush you or pressure you into anything that you're not sure about, and will take care to understand what it is that is making you uneasy. But yes, there are also a number of less scrupulous outfits who will chase every potential lead endlessly and are well worth avoiding.

Aquiver Mon 16-May-16 20:10:25

Thank you concert, Diddly, sun and others - much appreciated.

Aquiver Mon 16-May-16 20:12:09

Thank you for the link Diddly - how awful to read of the scams out there. Thankfully this person is taking the money from their pension provider directly and has received advice etc from them, so is going through the official channels.

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