Did the rules on drawing down a private (defined contribution) pension change on Feb 1 requiring an IFA to take the action of triggering a draw down?
(I think there's an IFA on here. Can s/he PM me please?)
Printable View
Did the rules on drawing down a private (defined contribution) pension change on Feb 1 requiring an IFA to take the action of triggering a draw down?
(I think there's an IFA on here. Can s/he PM me please?)
I have always assumed that it was mandatory for an IFA to action a drawdown - it certainly is the case with my drawdown pension. I guess it's a safe guard in the event I might go doo-lally and spend the lot on a Lamborghini or similar. However there are more knowledgeable people on the forum than me on these matters, who will doubtless be able to have their input.Quote:
Originally Posted by az city
My pension firm insisted I went through an IFA, luckily one travels on our coaches, so he contacted them on my behalf.
I’m in two minds about this, one they’re trying to protect my interests, but two, IT’S MY MONEY.
I suppose my other one with Scottish Widows, will be the same.
Tony:Quote:
Originally Posted by BLUETIT
It's Scottish Widows I have the problem with. Any chance the person could help me out?
I am an IFA and deal with Pensions in the main. There are some changes as of Feb 2021 linked to how you invest your drawdown pension. My firm always has to advise on taking your first drawdown, and you should take advice. Alternatively you could speak to you pension company, they will point you in the direction of an IFA but can run through a questionnaire with you if you 'go it alone' but there will be no advice from them (unless they refer you to inhouse advisers, who will not be independent). Obviously if you make you your own choice re drawdown you are not getting advice and it could not be in your best interests. So speak to an IFA, even if you don't take their advice.Quote:
Originally Posted by az city
I think it is https://www.ccmb.co.uk/member.php?22...sign-Carl-Dale that you are looking for
[QUOTE=az city;5166906]Tony:
It's
Scottish Widows I have the problem with. Any chance the person could help me out?[/QUOTE
He’s not been in the best of health for a few months, so I’m not sure if he’s working at the moment.
But I will ask the question for you :thumbup: if you don’t ask, you don’t get
You are only required (in law) to use an IFA for a defined contribution pension if it has a guaranteed annuity rate (or similar) and the fund is worth over £30,000.Quote:
Originally Posted by az city
Different schemes may have their own rules for entering other pension based investment plans even where they are "internal" transfers as they may seek to "protect" themselves by requiring you to take independent advice.
Thanks for the reply. I don't need advice, I just want to withdraw cash and not take out an annuity. How do I do this without paying an IFA?Quote:
Originally Posted by cardiff55
It's worth over the 30K GBP so I guess I have to get an IFA to help me.Quote:
Originally Posted by JumpersforGoalposts
If the fund is over £30k AND has a guaranteed annuity rate attached to it (or a similar guarantee of a minimum return) you have to go through an IFA. The guaranteed annuity rate makes the fund similar to a defined benefit pension, hence the requirement.Quote:
Originally Posted by az city
If it's a "bog standard" private pension fund with no guarantees you are not required IN LAW to use an IFA, but the drawdown scheme or fund you want to transfer to may require you to use an IFA to enter their scheme.