Pension Early Encashment Charge

jntsnk

I now realise that I am stuck with a pension company due to this charge. I didn’t realise I signed up to this stipulation. Is it legal to do this this?

coylemj

What kind of service did you sign up for and how did the service provider propose to get you early access to your pension fund?

It would be helpful (without mentioning the name of your employer or the service co. you engaged) to say what type of pension you have - DB, DC, public sector, PRSA? Are you over 50? Are you still working? Are you out on disability? It's impossible for anyone to offer advice without knowing a lot more about your situation. No need to quote any personal details.

Henry Ford III

Yes.

All costs, charges and/or commissions should have been revealed and disclosed at the point of sale though.

What are the exact circumstances?

Liam D Ferguson

The title of this thread suggests to me that the OP is referring to charges for transferring his/her pension fund away from a particular provider - often in the first five years. As has been said, this should be disclosed at point of sale. It would also be on a policy document.

Do you have the policy document?

Alternatively, if the OP was a member of an employer's Occupational Pension Scheme, then it is the employer that is the client and the employee is the beneficiary. So there is no legal obligation to disclose charges to an employee member of an Occupational Pension Scheme. I'm not saying this is right. Good practice would suggest that you tell an employee about charges regardless of whether or not it is required by law. I also believe that it should be required by law. But that's the strict answer in these circumstances.

jntsnk

Ok, apologies for late reply, and thank you responses. I should have given more details .
I’m self employed, 45 , contributing to a private pension with Standard Life called a synergy personal pension.

Henry Ford III

jntsnk wrote: »

Ok, apologies for late reply, and thank you responses. I should have given more details .
I’m self employed, 45 , contributing to a private pension with Standard Life called a synergy personal pension.

That makes it much easier then.

Somebody sold you the policy, and you need to take up your issue with them. If they didn't comply with the relevant legislation address it with your advisor initially, and if you don't get satisfaction there you should lodge a formal written complaint about any shortcomings regarding compliance and disclosure.

If you get nowhere come back to us, as there are a couple of escalations you can take at that point.

Liam D Ferguson

You should have received what is known as a Statement of Suitability from the broker, explaining why s/he was recommending a Standard Life Personal Pension to you. You would have been asked to sign that. Did it mention anything to do with the early exit charges? Do you have your policy document?

Henry Ford III

Liam D Ferguson wrote: »

You should have received what is known as a Statement of Suitability from the broker, explaining why s/he was recommending a Standard Life Personal Pension to you. You would have been asked to sign that. Did it mention anything to do with the early exit charges? Do you have your policy document?

Yep. You should have gotten a personalised quotation too.