Collective Plan - Lack of Flexbility?

[stevejm]

For various reasons I'd prefer to take a lump sum when I retire and NOT have a guaranteed income. The new Collective Plan doesn't allow any flexibility - seemingly - and it appears to be a case of "here's how it works - like it or lump it" (pun intended).

Well I would like to 'lump it', as in have all the accruals as a lump sum. No dice according to an email I received from the Collective Plan Helpline [is it just me or does that name sound dystopian?]

I was quite happy with the Scottish Widows arrangement but that avenue was cut off. Now we are all being dished out something which may be overall better for the majority but lacks any flexibility for the minority with different circumstances.

Any advice on this appreciated, thanks

[RobertT]

Have a read of the Handbook on the RMCPP website.

You can take a cash value of your pension and transfer it to a personal pension, which will give you the same flexibility as you have with your RMDCP pot with Scottish Widows.

You can also transfer the lump sum(inc booster) and the AVC.

[yubin282]

For various reasons I'd prefer to take a lump sum when I retire and NOT have a guaranteed income. The new Collective Plan doesn't allow any flexibility - seemingly - and it appears to be a case of "here's how it works - like it or lump it" (pun intended).

Well I would like to 'lump it', as in have all the accruals as a lump sum. No dice according to an email I received from the Collective Plan Helpline [is it just me or does that name sound dystopian?]

I was quite happy with the Scottish Widows arrangement but that avenue was cut off. Now we are all being dished out something which may be overall better for the majority but lacks any flexibility for the minority with different circumstances.

Any advice on this appreciated, thanks

The RMDCP scheme was pretty good, buts that's gone to the dogs. If you need £800 per month to live the take £800 per month until it runs out. At least we knew what we had and what we get.

I'd take that over this new scheme. Which we all know will fail.

[Wullie10]

I rang Sheffield with the intention of transferring what was left on my AVC ( took most at 60 ). and was told I was basically mad as it forms part of my 65 lump sum. The cash build up on both will now be over £30,000 so I'd have to pay for financial advise by law to transfer and they'll.no doubt say the same. Mad to transfer out

[RobertT]

I rang Sheffield with the intention of transferring what was left on my AVC ( took most at 60 ). and was told I was basically mad as it forms part of my 65 lump sum. The cash build up on both will now be over £30,000 so I'd have to pay for financial advise by law to transfer and they'll.no doubt say the same. Mad to transfer out

It sounds like a typical phone call to them – it's a bit hit or miss whether you get lucky and talk to someone who actually knows what they're doing!

You can take your AVC's with Age65 benefits if you want to, but as you have the DBCBS for that, transferring could save you a bit of tax and be more flexible.

You'll need IFA approval if you want to transfer a DBCBS fund of £30k or more, as that's classed as a defined benefit scheme. But AVC's are defined contribution and no such rule applies.

The fact they might add up to over £30k is irrelevant!

It's not their job to tell you what to do.
Just ask them for an AVC transfer form, fill it in and send it off.

[Wullie10]

Thanks for that. That was my understanding but the advisor tied me up in knots. She said I could transfer if I wished but but but but.... You are spot on about pot luck with telephone calls. I previously rang to enquire and the person said "certainly I can transfer they'll send out a form. Just ring back after 7th October. " Which is what I did then got the other confusion answer . ... I'll do as you say now and ask for a transfer form end of

[Hyrrokkin]

I rang Sheffield with the intention of transferring what was left on my AVC ( took most at 60 ). and was told I was basically mad as it forms part of my 65 lump sum. The cash build up on both will now be over £30,000 so I'd have to pay for financial advise by law to transfer and they'll.no doubt say the same. Mad to transfer out

It sounds like a typical phone call to them – it's a bit hit or miss whether you get lucky and talk to someone who actually knows what they're doing!

You can take your AVC's with Age65 benefits if you want to, but as you have the DBCBS for that, transferring could save you a bit of tax and be more flexible.

You'll need IFA approval if you want to transfer a DBCBS fund of £30k or more, as that's classed as a defined benefit scheme. But AVC's are defined contribution and no such rule applies.

The fact they might add up to over £30k is irrelevant!

It's not their job to tell you what to do.
Just ask them for an AVC transfer form, fill it in and send it off.

That is worrying that someone at PSC does not know that basic fact - even i know that and i am an idiot !