pension advise

[1soulgirl]

Has anyone on here used the services of a financial advisor and are they very expensive. Need advise on pension pot.

I am a financial adviser. Can you be a bit more specific about your query? It may be something that the Money & Pensions Service can help you with, though they only offer guidance not advice.

its relating to a works pension. Partner wants to take 25% tax free. Trustees wont let him take drawdown and suggest putting the remaining amount into an annuity!

Ok, Occupational Schemes can be set up with quite limited options for how pension benefits can be taken but generally with the aim of providing a secure lifetime income in retirement for the member. In most schemes there usually two options - either to receive an annual pension income or to receive a Pension Commencement Lump Sum (tax free cash) and a lower level of annual pension income. Has he been given a Retirement Benefits Statement to indicate what the benefits available directly from the scheme might be?

How old is he?

He is 56. He gets a statement annually. Is it true that you have to see a financial advisor or the pension provider wont deal with your request?

So it sounds like he wants to access his 25% tax free cash but not take the pension that the scheme is offering to him (which I am presuming is relatively low due to a reduction for taking the benefits before the scheme's Normal Retirement Age)? And therefore he wants to look into transferring out completely so that he can access tax free cash but leave the rest invested until required?

In which case, yes, if the transfer value is greater than £30,000 he is legally required to seek advice and both the scheme trustees and new provider will most probably ask for proof that he has done so.

The Money & Pensions Service is a free government backed body which might be worth contacting in the first instance. They will outline the pros and cons of a transfer out versus staying in the scheme. This is a contentious issue at the moment and many advisers are wary of its potential to be the next big mis-selling scandal so not that many are actually willing to offer advice, or will only look at large pot sizes. Also be aware that there are some advisers charging very hefty fees so shop around if you think you need to find better value.

Yes he wants to take the 25% tax free, The trustees dont allow drawdown but want him to put the residual into an annuity. I know we could move it to another provider if we wanted drawdown but not sure how much it would cost to do so. I'm not sure what guarantees come with his pension which may mean its better to take annuity off his pension provider! Didn't realise how difficult all this was going to be to get your head around it. Thank you for your advice. Think maybe we will end up leaving pension sitting where it is