Anyone experienced this?

[PinkiOcelot]

I have a private pension that I paid into years ago and it’s just been sitting there. It’s got to the point that I could draw it or some of it now.
However, the company won’t let me unless I consult a financial advisor- which I will have to pay for.

It’s my money. If I wanted to spend it on sex, drugs and rock and roll, I should be able to.

AIBU to think this is ridiculous?

I think it the law that you must have legal advice if the value exceeds £30k

When I wanted to cash in my pension to retire at 55 I had to pay £4k to an FA

Fairly sure it's a legal requirement above a certain value. Sadly it's the government's response to all the scams - rather than find and convict the scammers, make you talk to someone reputable in the hope you don't get scammed.

Yeah the govt don't want you to spend it as they will then have to fund your retirement. I intend to use mine as a house deposit or they will be paying my rent for me so it's doubly galling.

I never thought about scammers.

It’s not my only pension pot. I’ve got my occupation pension as well. I could really do with the money.

@FrogFairy £4k? 😮

Yes I know. £4k was all of my savings, but I felt I needed to retire due to health problems. The £4k covered preparing a case for me to access my pension fund early. Luckily it was agreed and just as well because I have acquired several more health problems since retiring.

As others have said, it’s the law and was brought in due to massive problems with people taking their pensions early without fully understanding the implications of doing so for their future financial security.

Ask the company all your options - push them on it. They might have an insistent customer process. It might be because you’d be giving up guaranteed annuity rates or some other valuable benefit, so the FCA are protecting you by insisting you take advice and understand what you’re doing.

https://www.unbiased.co.uk/discover/pensions-retirement/starting-a-pension/do-you-need-a-financial-adviser-for-your-pension

It’s my money. If I wanted to spend it on sex, drugs and rock and roll, I should be able to.

Arguably you should have saved it in a more appropriate place and not benefited from tax relief etc if you wanted to fritter it.

You can’t insist in this situation, it’s a legal requirement and not one brought in my the FCA.

I’m not sure how you’d know? OP doesn’t say whether it’s defined benefit or defined contribution pension. The £30k rule is for defined benefit pensions.

Fraud is a huge issue, it took my dad nearly a year to get his and he was terminally ill and 64 years old. It is frustrating but pensions are not there for quick withdrawals for a reason.

The reason you need a financial advisor is precisely because too many people shaft themselves by spending it on sex, drugs or rock and roll.

I think it is good people have to take advice, to (hopefully) prevent exploitation, scamming or stupidity.

Apologies I wasn’t clear. It wasn’t the FCA that brought in the requirement is the point I was trying to make, it derives from legislation, not the FCA Handbook.

Is that "frittering" it though?

You’re not a tax payer then?