ARF without a Broker

R

Redhand

Registered User
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Why must I use a Brooker to transfer my pension pot to an ARF with the same provider. I know what I want but they won't let me. Forcing me to surrender a high % by way of commission / poor allocation rate. Is this avoidable with other providers. I'm with A viva. Just want my 25% and leave the balance as an ARF in my chosen fund.
 
You should not be forced to use a Broker. If Aviva refuse to execute your instructions on an “execution only” basis (since you don’t want “advice”and know what contract you prefer), then threaten to move the 75% to another provider.
 
I agree with Redhand there should be no need to use a broker.
I would go a little further and say that for anyone in a DC scheme they should be allowed leave their pot in it after retirement and draw it down on a phased basis of 4% per year.
Can any Financial Adviser tell me the advantage of moving your pot of money in the first place
Please do not use excuse it is a Revenue requirement
 
Colm Fagan of this parish has made that exact suggestion.

My sense is that employers wouldn’t want ex-employees sitting on their DC scheme post-retirement.
 
Whilst leaving the 75% in the existing structure would be a big development, the current regulations ( I never mentioned Revenue) say that once the 25% is taken that the balance must be used either to buy an Annuity or invest into an ARF.
So if Aviva don’t care if you move the funds, then do it. Pick another provider (Irish Life, New Ireland, Standard Life, Zurich Life for example) and see what terms they will offer since you want an “execution only” service. Otherwise you can find a Broker to establish an ARF on an “execution only” basis.
 
I have a non standard PSRA and will take 25% tax free lump sum at 60 and continue on with PSRA without going the ARF route.Is this not possible%
 
Yes. You can leave the 75% in the PRSA (it becomes a Vested PRSA) and draw down a minimum of 4% pa.
There is change likely on the horizon in terms of pensions regulation. So one never knows what new flexibility may be introduced.
 
Clonback said:
I have a non standard PSRA and will take 25% tax free lump sum at 60 and continue on with PSRA without going the ARF route.Is this not possible%
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This is only possible at the moment with a PRSA. If the Redhand's pension pot is a DC scheme or a Personal Pension, it's not possible.

In the UK it's possible to draw down retirement funds directly from a pension scheme without setting up a new product to do it. As has been said above, this flexibility may or may not become available here in the future.
 
Clonback said:
I have a non standard PSRA and will take 25% tax free lump sum at 60 and continue on with PSRA without going the ARF route.Is this not possible%
Click to expand...

Until you are 75 when you have to move it to an ARF or it gets locked in and your loved ones get to spend it when you die instead of you.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Redhand said:
Why must I use a Brooker to transfer my pension pot to an ARF with the same provider. I know what I want but they won't let me. Forcing me to surrender a high % by way of commission / poor allocation rate. Is this avoidable with other providers. I'm with A viva. Just want my 25% and leave the balance as an ARF in my chosen fund.
Click to expand...

Life companies will say that they want people to get advice before they make financial decisions on their products. If you go to any of the life companies directly, you get their direct sales team. Your best bet is to use one of them and tell them exactly what you want, tell them it's execution only and you only want them to sign off the form. You've a better chance of getting it done at no cost with them then using a broker who will have to charge you something.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
5thwheel said:
I agree with Redhand there should be no need to use a broker.
I would go a little further and say that for anyone in a DC scheme they should be allowed leave their pot in it after retirement and draw it down on a phased basis of 4% per year.
Can any Financial Adviser tell me the advantage of moving your pot of money in the first place
Please do not use excuse it is a Revenue requirement
Click to expand...


Hardly an excuse. They are the Revenue's rules, you have to play by them.
 
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