Signing Advice Forms
My pension provider says I must take advice – will you sign my form?
The short answer is maybe and that charges apply.
The more detailed answer is:
What your question tells us is that you have what’s called a ‘safeguarded benefit’. This means it has some form of guarantee attached to it. What you’re trying to do involves giving that guarantee up.
The Government has decided that the risk of people making a bad choice is too great. Anyone with a safeguarded benefit worth more than £30,000, must take regulated financial advice before they give it up. A completed form would be the evidence that that you have taken advice.
Sometimes pension providers make out that all you need to do is speak with an advisor and they’ll sign the form. That’s not the case, We’re duty bound to consider your financial position and advise you on the best course of action for you. This may not be to withdraw.
The key factors are:
1) Your personal financial situation – why do you need this money?Are you currently earning, do you have other plans in place?
2) What is the guarantee you have? Is it valuable to you?
3) How would withdrawing affect your longer-term retirement plans
Whilst we’ll take your wishes and intentions into account, we cannot and will not recommend something that is unsuitable for you.
For us to provide advice, we will charge a fee. This fee 2% of the value of your pension fund, subject to a minimum of £500. It may be possible to take this from your pension fund directly. If not, we will invoice you and you can pay by Bank transfer.