Advised of a Defined Contribution Pension at 78

[Crazbe7]

I hope someone can help me help a former neighbour of mine.

He has just been advised by Zurich that he has a Defined Contribution Pension of approx. £150,000. He had no knowledge of this and is 78. They have only now been able to find him. His previous employers went into administration over 20 years ago.

The paperwork he has been sent by Zurich has completely befuddled him. Hence my involvement.

Zurich will not allow him to use any of their products, I assume because he is 78. I was on a call to Zurich with him and they insist he must transfer the DCP to another provider or take the full amount from them. 25% tax free the remaining amount subject to income tax.

His only current income is the State pension, supported by savings. He is currently a non tax payer. He has no access to the internet and has no plans to start. He has no contact email address. He is single with no dependents.

Managing a SIPP or similar is out of the question for him. I explained his annuity options. He is interested in a no protection, no annual increase Annuity for 10 years, after taking a 25% tax free lump sum or taking the full DCP amount, and accepting the tax implications. He had nothing yesterday is his view. I would help him recover any overpaid income tax and complete any tax returns.

I'm happy to help arrange an Annuity for him, but is there an Annuity provider who still uses the post or phone? I could be his 'internet shadow' setting up an email address and an Annuity account for him, but if I move away or fall ill he could potentially be locked out of his own money

Thoughts and advice welcome.

Crazbe7

[bots33]

Hi Crazbe7

Have a look at ordinary power of attorney (PoA) for you to manage his affairs - can make very specific and time bound (expires automatically on his death), or alternatively work informally (although that may prevent you dealing with Zurich, Pension Wise, FCA on his behalf)
https://www.moneyhelper.org.uk/en/famil ... your-money

Also, Zurich have a consumer duty to look after vulnerable customers - i.e. ensure all comms can be understood by vulnerable customers.
https://www.zurichintermediary.co.uk/ad ... -customers

More detail around Consumer Duty found on the FCA website here
https://www.fca.org.uk/news/news-storie ... l-services

This article provides more scope around consumer duty.
https://www.deque.com/blog/consumer-dut ... e%20format

Most providers will require that someone taking a PCSE has undertaken a (free) assessment with Pension Wise to run through options
https://www.moneyhelper.org.uk/en/pensi ... -or-friend

So, I'd suggest an ordinary PoA that enables you to support your neighbour with his Zurich pension, arrange a Pension Wise call, clarify what your neighbour wants to do with his pension - and then contact Zurich to arrange such, and ensure they provide relevant support /comms as a vulnerable customer (no technological skills and 78 years old)

[scrumpyjack]

It is curious how perspectives about age change or differ. I'm 75 and to me 78 doesn't seem that old as long as one's health is OK.
Lots of the guys I play tennis and golf with are older than me and still play a decent game.
It must have been about 15 years ago that I felt shocked when a young lady offered me her seat on the London underground.