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Original poster

Just to vent

6 replies

worthlesspension · 16/02/2022 14:53

Long story short -
until 3 years ago DH wasnt aware there was a pension worth more than 7k from a company he worked for in the 80's/90's.

Then a statement drops through the door with a much bigger sum stated! advising him to contact WSPA - the advisor kindly told him he could claim (he was 53) NO HE COULDNT. Months later advisor says ok but you can at 55 and you can take a 25% tax free lump sum.

Guess what no he can't. Some waffle about SERPS was stated!

It's a DB pension with a transfer value that would significantly change our lives and affect his health. However in these nanny state times advisors are not willing to recommend a transfer (scared of liability claims) so we cant. This has now been going on for many many months and the end result is he cannot access any significant amount - to clear debts, to purchase a share in a property, to have private surgery or god forbid any sort of life.

All hopes dashed and he can now get approximately £50 a week!

People who we have only ever spoken to on the phone, who certainly don't know us or our circumstances get to make the decisions.

I am now fearful for his mental health.

Just needed to sound off really, but so damn cross

OP posts:
Loveandlimpets · 16/02/2022 18:00

Is that the only pension he has? That's very annoying that you can't get a lump sum but I suppose 50 a week is better than nothing.

Costacoffeeplease · 16/02/2022 18:25

Why can’t you access it at 55? That doesn’t make sense

Winter2020 · 17/02/2022 02:13

Hi, I've just had a Google and looked at several official sources of pension advice. All I can find is that you must take regulated financial advice if the pot value is over 30k so that you are aware of the pros and cons, but I have not seen anywhere that the advice has to declare the transfer a good idea.

I think you just need to provide evidence of the advice being taken (like a letter) then even if the advice clearly stated it is not in your interest to do the transfer just say you have considered the advice and decided you still want to go ahead. I think it is all about removing liability - you can't claim later that they were negligent or sue as you understood you were going against financial advice.

That's how I read it.

sheslittlebutfierce · 17/02/2022 07:43

@Winter2020

Hi, I've just had a Google and looked at several official sources of pension advice. All I can find is that you must take regulated financial advice if the pot value is over 30k so that you are aware of the pros and cons, but I have not seen anywhere that the advice has to declare the transfer a good idea.

I think you just need to provide evidence of the advice being taken (like a letter) then even if the advice clearly stated it is not in your interest to do the transfer just say you have considered the advice and decided you still want to go ahead. I think it is all about removing liability - you can't claim later that they were negligent or sue as you understood you were going against financial advice.

That's how I read it.

It would be great if that were the case but it doesn't seem so. If any financial people know otherwise please let me know!
Sunseed · 17/02/2022 19:39

Without knowing the scheme rules this is just general guidance....

With many DB schemes a member often has 3 options when they come to take benefits:

  1. Full scheme pension (reduced if taking earlier than scheme retirement age).
  1. Tax free lump sum and a reduced scheme pension.
  1. Transfer out of the scheme to another arrangement.

But, if your scheme benefits include Guaranteed Minimum Pension from being contracted out of SERPS and taking a tax free lump sum would reduce the pension below the level of GMP then you cannot be given that option - and that sounds like it may be so in your case. Hence why you're now being told you can't get 25% tax free cash.

DB advisers will give you their best advice about whether or not it is in your best interests to transfer out of the scheme, having considered all alternatives available and your personal circumstances and needs. If they say Do Not Transfer you are absolutely allowed to go against their advice. However, you need to be aware that, to my knowledge, there are currently no pension providers who are accepting transfers in without a positive recommendation from a DB adviser. It is a very high risk area of advice, with the rising costs driven by PI insurers who can foresee that it's ripe for complaints when people run out of money.

sheslittlebutfierce · 18/02/2022 14:17

So you can take it but you can't ..... sounds like no you cant!

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