Starting the process of accessing your DC pension

[ren531]

Going to start using some of my DC pension next year, what are people's experiences of the process , how long did it take from start to finish setting it up, it will depend if you use the current providers product or move the pot to another provider no doubt.
I have rung 2 of my providers and they are quite dismissive and make it sound so easy when everyone I speak to say's differently and spend weeks or months back and forth.

 

[Bonefish Blues]

Start early, very early. Do not take them at their word.

TBF some are good, but we have had an awful experience in the last yearwith an utterly inept household name. My wife's case is currently in the hands of the Pensions Ombudsman.

 

[wakemalcolm]

Largely depends on the provider but if you're looking to start payment before the end of the tax year, I'd start the process at least 2 months beforehand.

 

[Gunk]

I draw down my tax free allowance each year and the process definitely takes at least 2 months. be careful about the tax years, my provider ended up paying it in the wrong tax year, completely ignoring my instructions. So I now start the process in April to be completely safe.

 

[ren531]

Start early, very early. Do not take them at their word.

TBF some are good, but we have had an awful experience in the last yearwith an utterly inept household name. My wife's case is currently in the hands of the Pensions Ombudsman.

Yes this is sounding more like how things work in the real world.

 

[ren531]

Largely depends on the provider but if you're looking to start payment before the end of the tax year, I'd start the process at least 2 months beforehand.

I will probably have 1 month still working in the new tax year then taking pensions after that , but will start the process early.

 

[ren531]

I draw down my tax free allowance each year and the process definitely takes at least 2 months. be careful about the tax years, my provider ended up paying it in the wrong tax year, completely ignoring my instructions. So I now start the process in April to be completely safe.

Two months seems to be the starting point then .
My wife's moving a pension pot to another provider and that's taken months so far and still on going, so I'm not at all surprised that it isn't as easy as they claim.

 

[fossyant]

I contacted mine about 3 months before but was told to get everything rolling after I was 55. Took less than a week tbh. Two were much quicker than one other.

 

[Bonefish Blues]

Two months seems to be the starting point then .
My wife's moving a pension pot to another provider and that's taken months so far and still on going, so I'm not at all surprised that it isn't as easy as they claim.

It's a yawning hole in FS Regulation IMHO - FS companies seem able to determine their own delivery, set their own processes, timelines and so on. Not bother about any business processes associated with acquisitions they make, and much more.

For balance, Legal and General were very good in my case - I transacted everything online, and all done and paid in days, so it can be done, but I too had issues with the company my wife has complained about. In fact their processes are so opaque, it took 3 months to get info about transfer processes, and even today, I still have not transferred away, because they do not accept e-signatures, so I wet-signed the papers and posted them this afternoon. This is 2025 FGS...

 

[JohnHughes307]

The other thing to watch out for is that, for the first withdrawal, they will use emergency tax codes as they won't have heard from HMRC. If you want to withdraw a reasonable amount, it may be worth withdrawing a smaller amount a month or so beforehand so that HMRC has sent the Pension company the correct tax code by the time you make your larger withdrawal.

 

[kynikos]

I moved mine to Vanguard - good selection of funds and low charges. It took a few months for one of my funds to get moved across due to the original provider dithering about but once across in Vanguard I've found the service to be very good.

 

[oxoman]

It's worth getting an advisor to help, especially if more than 1 pension. DC pensions are certainly easier to deal with than DB. You can have your 25% tax free but everything after that gets taxed if you go over your tax allowance. If your still working or pulling your state pension whatever you pull over your initial 25% will be taxed, hence best to get advice. Colleague at work has ended up paying stupid amounts of tax because he started pulling state pension and personal pension whilst still working. It's taken 6 months for him and an adviser to get everything sorted.

 

[ren531]

It's worth getting an advisor to help, especially if more than 1 pension. DC pensions are certainly easier to deal with than DB. You can have your 25% tax free but everything after that gets taxed if you go over your tax allowance. If your still working or pulling your state pension whatever you pull over your initial 25% will be taxed, hence best to get advice. Colleague at work has ended up paying stupid amounts of tax because he started pulling state pension and personal pension whilst still working. It's taken 6 months for him and an adviser to get everything sorted.

Yes there's lots of pitfalls and twists and turns to all this, been studying it for some time and there's lots to take in.

 

[ren531]

The other thing to watch out for is that, for the first withdrawal, they will use emergency tax codes as they won't have heard from HMRC. If you want to withdraw a reasonable amount, it may be worth withdrawing a smaller amount a month or so beforehand so that HMRC has sent the Pension company the correct tax code by the time you make your larger withdrawal.

I've got this in mind for my first withdrawal which will be small.

 

[ren531]

It's a yawning hole in FS Regulation IMHO - FS companies seem able to determine their own delivery, set their own processes, timelines and so on. Not bother about any business processes associated with acquisitions they make, and much more.

For balance, Legal and General were very good in my case - I transacted everything online, and all done and paid in days, so it can be done, but I too had issues with the company my wife has complained about. In fact their processes are so opaque, it took 3 months to get info about transfer processes, and even today, I still have not transferred away, because they do not accept e-signatures, so I wet-signed the papers and posted them this afternoon. This is 2025 FGS...

It appears that there not going to make it easy, I guess a lot of it is a cautious approach due to fraud.