Small Pots
rwooffatst
Member
Hi all,
I have an adviser that is looking to use small pots by transferring the clients plans c. £120k to OMW and then taking £30k as a small pot.
It is my understanding that Small Pots is £10k per pot (max 3) and that they must fully drain the arrangement – am I missing something? Are you aware of any loophole with OMW in particular?
Thanks for any help you can give!
Comments
Scrap that - I have found the answer I need.
Not sure how to delete it sorry!
Hi,
Rather than delete the post, would you mind posting the outcome for others in the future? Thanks
I believe it is a segmented plan so they just split it out into 3 arrangements and pay the 10K out under each.
https://www.oldmutualwealth.co.uk/globalassets/documents/life2/using-small-pots-legislation.pdf
Hi,
Yes, as @Jona has said, they segment the plan. However they will not facilitate this if the client has Fixed or Enhanced Protection because of the danger of losing it.
I recently discovered that Aviva can do this as well. We have a few clients with Aviva GPP's that have limited retirement options so knowing that Aviva will facilitate 3 x small pots is really handy especially as small pots don't trigger the MPAA.
Is there anything to stop us abusing the system? As in the provider only get AUM for 5 minutes so what's in it for them?