Pension

[tspill]

Originally Posted by Cannavar

Tspill,

Those you are replying to on this thread fully understand drawdown and de-risking. I am not sure why you needed to write a full simplistic post.

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Thanks for your feedback and your other enlightening post on the subject.

I guess I was trying to help rather than just making sniping posts with zero actual information.

[ClaireNJ]

Thanks everyone😍 will get advice once the current situation is all over 😢😷
Stay safe xx

[Moorlandman]

Some really good advise on here - thanks especially to tspill.

[tspill]

Originally Posted by barryp1

However let's not labour the point as we run the risk of giving unauthorised advice. You lost some credibility when you said originally that drawdown cash could not be withdrawn on demand.

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Originally Posted by tspill

PS I don t think I did say drawdown couldn't be withdrawn on demand. At least I dont think I did. If I did, then my mistake as that was not my intention. The demand is created by the need of the individual. For most planning retirement, that demand comes at the point of retirement.

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Barryp1 - So I have reread my posts and I can not see where I have said "drawdown cash could not be withdrawn on demand" as you have quoted.
Maybe I read them too fast, but can you point out exactly where I have said this and I will edit it. If you could refer me to the post in question and highlight where I have said the above. Thanks.

[tspill]

Originally Posted by Pumba75

OP,

I’d strongly recommend seeking advice on this. There’s a lot of good information on this thread, but some information which may confuse you or isn’t relevant.

Couple of ways you can start the process of accessing advice. You mention your husband has a workplace pension - it may be worth asking his employer if they have a Workplace Adviser/Benefit consultant that he can talk to who will be able to answer initial questions, and may offer a route to advice (just check they’re independent). If not, ask family/friends/colleagues who they use or check on Unbiased.

Reasons you need to get advice on this:

- Reassure buy up “closed book” business, from providers who don’t want to be in the market anymore. They simply keep the arrangements “ticking over”. I would have concerns about how actively they approach the investment strategy. They are unlikely to invest in their systems etc to improve the customer experience.
- Based on their business model, it’s unlikely they will be able to facilitate the full range of benefit options now available - more likely they will only offer annuity purchase. So, if your husband wants to take one of the flexible options he’ll need to move this fund to another plan.
- 1% Annual Management Charge is high in the current market.

Couple of other points to clarify:
- The “Lifestyle” de-risking process referred to is only available within a Workplace pension. The Reassure plan won’t do this.
- If taking the flexible “drawdown” approach to taking benefit, then exposure to stocks and shares within the fund will still be required, but in most cases, and based on other comments you have made in this thread, not at the level that it is currently invested.

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Hi Pumba,
Can I check on the point in red. I (well my OH) has a SIPP (with HL) that is all cash (no investments). I have no plans to invest this - as the reason is we have put the money in for two years to allow her to collect the income tax uplift. I haven't actually looked at the mechanism to get the cash back out as yet. With cash - can we still not use flexible drawdown? The reason I ask is you mention the requirement for exposure to Ss&Ss. I have maybe misread/misunderstood this comment?

[barryp1]

Originally Posted by tspill

Barryp1 - So I have reread my posts and I can not see where I have said "drawdown cash could not be withdrawn on demand" as you have quoted.
Maybe I read them too fast, but can you point out exactly where I have said this and I will edit it. If you could refer me to the post in question and highlight where I have said the above. Thanks.

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"All drawdown is is one way of actually extracting money (in whatever holdings) from a pension. You cant just take it out like you can from a bank account." You are a big boy so don't be pedantic about the wording.

The OP has closed the thread with their response but I know we'll meet again

[tspill]

Originally Posted by barryp1

"All drawdown is is one way of actually extracting money (in whatever holdings) from a pension. You cant just take it out like you can from a bank account." You are a big boy so don't be pedantic about the wording.

The OP has closed the thread with their response but I know we'll meet again

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Yep. And this is exactly the case. You cant.
With a bank account you can move money about and withdraw it pretty much instantly.
When you want to take money from a pension (e.g. move to something like drawdown), you need to contact the pension provider. They will send you forms, you complete these and return them. Takes maybe a couple of weeks. If there are investments within this that have to be sold this can add to this.
So totally different (and not pedantic).
But even with that - you have clearly misinterpreted what I said, there was nothing in what I said what so ever saying it couldn't be done "on demand". Of course it triggered on a customer's demand.
Not sure why you are trying to throw insults? Not surprised though as you twist so many threads going back. I am done with this part of the conversation and it serves no purpose.

[barryp1]

Originally Posted by tspill

Yep. And this is exactly the case. You cant.
With a bank account you can move money about and withdraw it pretty much instantly.
When you want to take money from a pension (e.g. move to something like drawdown), you need to contact the pension provider. They will send you forms, you complete these and return them. Takes maybe a couple of weeks. If there are investments within this that have to be sold this can add to this.
So totally different (and not pedantic).
But even with that - you have clearly misinterpreted what I said, there was nothing in what I said what so ever saying it couldn't be done "on demand". Of course it triggered on a customer's demand.
Not sure why you are trying to throw insults? Not surprised though as you twist so many threads going back. I am done with this part of the conversation and it serves no purpose.

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Again this is inaccurate.

I want money, I phone up, answer security questions and money is sent.

[YorkshireT]

Originally Posted by tspill

Yep. And this is exactly the case. You cant.
With a bank account you can move money about and withdraw it pretty much instantly.
When you want to take money from a pension (e.g. move to something like drawdown), you need to contact the pension provider. They will send you forms, you complete these and return them. Takes maybe a couple of weeks. If there are investments within this that have to be sold this can add to this.
So totally different (and not pedantic).
But even with that - you have clearly misinterpreted what I said, there was nothing in what I said what so ever saying it couldn't be done "on demand". Of course it triggered on a customer's demand.
Not sure why you are trying to throw insults? Not surprised though as you twist so many threads going back. I am done with this part of the conversation and it serves no purpose.

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I can do mine online but it takes a few days to take effect.

[tspill]

Originally Posted by YorkshireT

I can do mine online but it takes a few days to take effect.

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Hi YT.
Was that just to draw funds or to initiate a pension into drawdown?

I contacted both Standard Life and Hargreaves Lansdown this morning (for mine and my wife's pensions).
Both told me the same thing - to put a pension into DD, would take a few weeks.
Maybe that's the difference here - initiating DD on a pension or drawing funds from a pension already in DD.
I have been talking about someone having to initiate a pension at this point in time when values have dropped and hence starting from a bad place (hence the need for derisking in preparation).
TBH, this was really a tangent to the points I was trying to make. It was derailed a bit. The point I was trying to get across was planning for retirement years in advance is important.