• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Transferring Defined Benefit pension

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #31
    Originally posted by Fred Bloggs View Post
    If you mange to pull this one off I'm all ears about how you did it. With 25 years left to retirement even in a boring vanilla fund like I suggested, you'd likely be miles ahead than with your DB pension. All things being equal etc..... (Which they aren't of course).
    As Fred says.

    The IFA will carry out a full risk assessment, the first step being is there the remotest chance that you could end up worse off and sue them for miss-selling. The second step is can they milk you for an annual fee to check your investments are on course? As you have already stated you want to transfer to a SIPP the answers are going to be 1.Yes, 2.No Step 3 is will I (the advisor) still get a fee when I advise against it? 3.Yes - That will be £3,000 pounds please, leave it where it is.

    Of course you may find an IFA that has your best interests at heart. He'll be next to the IT Recruiter who cuts his margins to the bone and wades through 100's of CV's to find just the right candidate.

    Comment


      #32
      I've just been through this myself and so have a couple of friends. I got offered nearly 40 x
      transfer value and I decided to take it.
      My reasons were I could take the pension earlier (DB pension was from 60) and hopefully 25% tax free.
      Other points to consider is what state is your companies pension in? If it's underfunded then who knows what
      will happen and what the government will allow in the future - you may get a lot lower value.
      Also you can pass on your pension when you die and it's not limited to just your spouse as the DB one
      was.
      It's your decision at the end of the day. You need a specialist IFA to do the transfer as most IFAs don't
      do this. I paid about £1200 but my transfer was worth about £100k

      Comment


        #33
        I should also note that the IFA advised me not to transfer and I had to send a statement saying I was aware of the
        risks and give a list of reasons why I wanted to still go ahead. They then proceeded with the transfer.

        Comment


          #34
          Originally posted by mackenzie99d View Post
          I should also note that the IFA advised me not to transfer and I had to send a statement saying I was aware of the
          risks and give a list of reasons why I wanted to still go ahead. They then proceeded with the transfer.
          Who did you use?

          Underfunding is one of my concerns. I know There's the pension protection fund, but who knows if that is gonna last the next 35 years.

          As far as I know, they have a massive pension liability and have posted considerable losses for about 4 years now.

          Comment


            #35
            Most IFAs are affiliated with a specialist transfer company so just ask your IFA. The one I used wasn't great as they took 6 months.
            Having said that the transfer value increased 10% during that time so it worked out well!! A friend of mine just
            got his transferred in 6 weeks. It's nice little business to be in as all they really do is write to your pension company
            and then put the details into some software that produces 1 page of decent info and about 20 pages of BS projections.
            They will then tell you not to transfer your pension and you go back and forth and overrule them etc. It probably takes them
            about 2 hours in total start to finish. Some charge a % of the transfer value and some charge a fixed amount.

            Comment


              #36
              Spoke to a local IFA this morning, who sounded positive about doing the transfer. Will need do the full assessment, but based on the transfer value I've been given, should be doable.

              3% fee though, which seems steep.

              Comment


                #37
                Transferring Defined Benefit pension

                Tideway feature heavily on the web and have been quoted in a number of newspaper articles I've seen

                Their blurb says the charge 1% if they recommend a transfer and no charge if they don't - with no commitment to use them to manage the funds on an ongoing basis.

                If I was unsure on the best way forward there is no way I would use them but if I was convinced I wanted to do the transfer then they sound like a cheap way of facilitating it

                Comment


                  #38
                  Had the full advice report etc from the IFA who was happy to recommend transferring out.

                  Estimated value at retirement age of the old pension is about £8600, so acheive this in a personal pension, the "critical yield" is just 4.4%, so I think I've made the right choice.

                  So a question for the more experienced investors - the fund reccommended to be placed in is the Royal London Governed portfolio 7. Thoughts on this?

                  Seems a good choice, low fees (0.45% for the amount I have), moderately adventurous/adventurous profile (I'm 30+ from retirement age, so volatility doesn't matter so much).

                  Comment


                    #39
                    Originally posted by FrontEnder View Post
                    Had the full advice report etc from the IFA who was happy to recommend transferring out.

                    Estimated value at retirement age of the old pension is about £8600, so acheive this in a personal pension, the "critical yield" is just 4.4%, so I think I've made the right choice.

                    So a question for the more experienced investors - the fund reccommended to be placed in is the Royal London Governed portfolio 7. Thoughts on this?

                    Seems a good choice, low fees (0.45% for the amount I have), moderately adventurous/adventurous profile (I'm 30+ from retirement age, so volatility doesn't matter so much).
                    This is where the fun starts then! Is the IFA doing the transfer for you? Who to - direct with Royal London, or through a platform? Is it a personal pension ie a stakeholder or such like, or a SIPP? Are there extra charges as well as the 0.45%, and what actually is the 0.45% is it the fund charge? What about ongoing fees for the IFA? What about platform fees? How large is the transfer value (only approx) and how many x is it of the GBP 8600 benefit? How long do you have to retirement? Do you have other pension savings as well? What are your targets and at what age? What is your attitude to risk? All this would be nice to understand then you can work from there.... HTH.
                    Public Service Posting by the BBC - Bloggs Bulls**t Corp.
                    Officially CUK certified - Thick as f**k.

                    Comment


                      #40
                      Originally posted by Fred Bloggs View Post
                      This is where the fun starts then! Is the IFA doing the transfer for you?

                      Yes

                      Who to - direct with Royal London, or through a platform?
                      Direct with royal london

                      Is it a personal pension ie a stakeholder or such like, or a SIPP?
                      Pesonal pension

                      Are there extra charges as well as the 0.45%, and what actually is the 0.45% is it the fund charge?
                      It's the fun charge. No other charges, other than the pension transfer.

                      What about ongoing fees for the IFA? What about platform fees?
                      No and no. They offered ongoing management for an annual %, which I declined.

                      How large is the transfer value (only approx) and how many x is it of the GBP 8600 benefit?

                      Details are in the opening post. £8600 is the projected value as it increases with inflation each year, £3800 is the current value

                      How long do you have to retirement?
                      As above, over 30 years.

                      Do you have other pension savings as well?

                      Yes, What are your targets and at what age? What is your attitude to risk? All this would be nice to understand then you can work from there.... HTH.
                      I'm not looking for advice on the transfer itself, just what people think about the fund that the IFA recommended.

                      Comment

                      Working...
                      X