Pension Drawdown

A pension provider must promptly and clearly communicate with consumers about pension transfers and policy mergers, and must compensate for financial losses and inconvenience caused by administrative errors and delays.

A pension provider must communicate all material deadlines and processing requirements clearly to consumers seeking to access pension benefits within a specific timeframe.

A pension provider must give accurate information about transfer eligibility and crystallisation rules, and is liable for losses caused by delays resulting from its incorrect guidance.

A financial services firm must provide clear information at the right time in an understandable way before a consumer places an order, in line with the Consumer Duty principle.

A pension provider must process drawdown payments and transfers promptly and must fully compensate consumers for financial losses caused by delays, including credit card interest incurred as a direct result.

A financial services provider must act without unreasonable delays when processing customer applications and must contact customers within a reasonable timeframe after receiving relevant information.

A pension product provider is not required to provide advice on suitability if the consumer completes an application on a no-advice basis and the product terms clearly disclose the mechanics of cash-in valuations and withdrawal penalties.

A pension scheme member cannot take scheme-specific protected tax-free cash and transfer the remaining benefits to drawdown in another scheme without triggering unauthorised payment charges under HMRC legislation.

A pension provider must apply tax deductions based on the tax code provided by HMRC and is not responsible for calculating whether a withdrawal should be tax-free based on personal circumstances.