I did it ...........
I had a DB pension as an insurance policy that paid nothing if i died, paid for nothing but an annuity (bad value) & the annuity paid nothing after I died after retirement. The original co went bust & was asset stripped , the pension went into the Gov protection scheme so we lost 10% anyway, the deal was just bad bad bad.
I transferred it to a PP with FA advice after explaining why i wanted it out of an insurance policy. It went into CIS or what ever they are called now, the FA took the commission from CIS for selling the pension & charged me £0, i left it there a discrete year (& it grew ok too) then transferred it to SIPP as it was now a PP & not a DB & they did nto need FA to do that.
It grew massively in the SIPP. then i took 25% of my total SIPP & paid 'Her' off for the house. I now have another parallel SIPP that earns tax rebates & I recycle those rebates back in too & that fund I can take its 25% when i actually retire in not so many years now.
Every case is different but go talk to a local independent FA say what you want & offer the deal.
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Reply to: Transferring Defined Benefit pension
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Previously on "Transferring Defined Benefit pension"
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Originally posted by FrontEnder View PostWhat do you mean by enhancement?
The value (38x the payout) combined with a long time to retirement make this worthwhile for me.
There were annuity comparisons in the report I got from the IFA.
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Originally posted by FrontEnder View PostWhat do you mean by enhancement?
The value (38x the payout) combined with a long time to retirement make this worthwhile for me.
There were annuity comparisons in the report I got from the IFA.
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What do you mean by enhancement?
The value (38x the payout) combined with a long time to retirement make this worthwhile for me.
There were annuity comparisons in the report I got from the IFA.
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Out of interest is there an enhancement being paid to the tramsfer value? This is quite common now.
Superficially transfer out of a db scheme is generally a bad idea but enhancement and personal cicumstances can make a huge difference.
It is wotgwhile getting annuity illustrations. Even though this might be inappropriate it gives a comparison base.
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Originally posted by Fred Bloggs View PostSounds like a decent plan. I avoided the other question really, my circumstances are very different to yours. So I hesitate. DYOR is my serious suggestion to you. One way or another, I've been doing this stuff for myself since the mid 1970's and I'm still learning.
I've also got a SIPP with HL, not a lot in there at the moment, just putting a regular £100 a month in, but I plan to increase this and throw the odd lump sum in when I have it available and when the time is right (wish I has some spare cash after the brexit vote!).
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Originally posted by FrontEnder View PostOut of interest, what would you recommend?
The transfer is already on motion, so I'm happy for it to go in there for the time being I'll keep an eye on it and learn a bit more about investments and maybe move it again if I feel it's worth it.
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Originally posted by Fred Bloggs View PostAh, OK, sorry. I apologise. I doubt anyone here will have ever heard of it TBH. I looked it up and first impression to me is that it is a pretty vanilla international equity fund with 5% in bonds/cash and 10% in property. Not able to say much more than that really. Good luck, it wouldn't be my choice but ho hum. The hordes will be along shortly to advise a tracker. But that wouldn't be my choice either.
The transfer is already on motion, so I'm happy for it to go in there for the time being I'll keep an eye on it and learn a bit more about investments and maybe move it again if I feel it's worth it.
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Originally posted by FrontEnder View PostI'm not looking for advice on the transfer itself, just what people think about the fund that the IFA recommended.Last edited by Fred Bloggs; 7 July 2017, 10:12.
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Originally posted by Fred Bloggs View PostThis 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.
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Originally posted by FrontEnder View PostHad 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).
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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).
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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
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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.
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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.
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