Question of Fees on early access to pension funds

System

This discussion was created from comments split from: Pension Advice.

Midlands Minnie

Hello, in April l made plans to cash in some of my pension as funds were desperately needed. I left my old company 10 years ago after working there for 18 years. I was told it was a fairly straightforward process. Long story short, my pension company is a nightmare to deal with, not answering emails or phone calls. l only received my money 3 weeks ago 3 1/2 months later but it was €2,500 short. I am frantic again as l am not getting answers as to what happened as again, no one will reply to my messages. Is there anything l can do or talk to someone who can help me. 2500 is an awful lot of money for me and l have lost out on deals over the summer waiting. Is over 3 months normal? I am 55 and fairly naive about financial matter and apologies if this is on the wrong thread. Thank you.

IPI2023

https://www.boards.ie/discussion/comment/121028433#Comment_121028433

Timewise 3 months is about average depending on what was needed to facilitate your pension access. Most likely your funds needed to be transferred to a PRB (Personal Retirement Bond) first and then the request for the withdrawal is processed. Unfortunately, it can take an age sometimes but the advisor you were dealing with would have known the expected timeline. They should have shared this with you so you could make plans based on when you would receive your funds.

As to the €2,500 do you know if this was a fee or perhaps tax? Have you been sent any breakdown of the transaction by your advisor? Feel free to PM me more details I can probably have a good guess at where the 2.5k is gone if I see the figures it relates to.

Finally, there is no excuse for your advisor not coming back to you whether by phone or email. Even if they are waiting on an update they should still pick up the phone and explain what is going on so you are not left in limbo. Vote with your feet!! If you still have some of the pension fund left...move it. The service you have received is way below standard. You are paying your provider a pretty penny as they take fees monthly from your pension, the least they can do is come back to you.

Peregrinus

Much depends on how your pension funds were invested. With many investments there are minimal or no fees for early access; with others, particularly those which offer guarantees or locked-in returns, there can be significant penalties.

The charge should not have come as a surprise; you should have been told about it when you first enquired about early access.

IPI2003's comments assume you had an advisor, but did you? Or did you deal directly with the pension department or pension administrators of your former employer?

@Midlands Minnie

@Midlands Minnie

A 28 year old pension is likely to have had initial and accumulation units.

In all the valuations you received there should have been a 'Nominal' Value & a 'Transfer' Value. The €2,500 may have been the difference between those two values.

An agent/intermediary would still be linked to this plan. Did you execute this transaction through them? If not, why not?

3 months is average, if you're a pension provider and you're trying to normalise crap service. Don't accept this, it's what they want everyone to do so that the failings of management aren't brought into focus.

Post all the facts of the case and someone here will tell you whether it's worth your while bringing it to the FSPO.