MetLife being recommended by IFA

Quick background, hubby has retired with a DB pension that we are managing our day to day living expenses with and I finished work with a deferred DB pension.
I am 54 and have no intention of further work as have enough savings to draw down for any large expenses and will get my state pension at 67.
I have been to see an IFA who has recommended the MetLife Guaranteed Income to transfer my pension to (approx £200 K) I have a very cautious attitude to risk and I understand why she has done this. If I understand it correctly as long as I do not touch the pension (which at the present time we have no need to) the capital grows at a minimum of 3% per annum and there is a daily lockout on this product. The IFA charges an initial 1.5% charge and an annual charge of 0.5% going forward and there is a charge from MetLife but I have forgotten what it was but was under 1%.

I have googled and looked at this forum for reviews on this company but they are all a few years ago and not that flattering and I was wondering if there has been any changes to people's thoughts.
Thanks for any advice that anyone can offer.
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Comments

  • dunstonh
    dunstonh Posts: 116,033
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    Its not a great option. It has a niche but typically used by investors that don't understand investments and dont want to understand investments. i.e. they dont like how investments go up and down and cant handle the downs and want to pay for expensive safeguards.

    I'm not a fan. I also find it strange that someone would transfer out of a secure option into a risk based option only to handicap the risk based option.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • RADDERS
    RADDERS Posts: 241
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    dunstonh wrote: »
    Its not a great option. It has a niche but typically used by investors that don't understand investments and dont want to understand investments. i.e. they dont like how investments go up and down and cant handle the downs and want to pay for expensive safeguards.

    I'm not a fan. I also find it strange that someone would transfer out of a secure option into a risk based option only to handicap the risk based option.

    Thanks for the prompt reply Dunstonh, the reason I am looking to transfer is that if anything happens to me before retirement age then hubby gets £2,000 per year and the return of my contributions, after retirement it is 50% so was thinking that as we are managing and hubbys pension is sufficient that the capital could be passed on in full to either hubby or kids when I pop my clogs (hopefully a while to go but you just never know), and if I understand correctly then the fund shouldn't go down.
    Thanks again
  • dunstonh
    dunstonh Posts: 116,033
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    and if I understand correctly then the fund shouldn't go down.
    And handicapped on the way up too.

    Death benefits are a valid reason for a transfer. However, what made the IFA think that you were not suited to conventional investment options?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • RADDERS
    RADDERS Posts: 241
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    dunstonh wrote: »
    And handicapped on the way up too.

    Death benefits are a valid reason for a transfer. However, what made the IFA think that you were not suited to conventional investment options?

    Possibly my fault as i am terrified of the ups and downs of investments, to put it into perspective all our savings are in cash accounts 😱 😱 😱
  • Drp8713
    Drp8713 Posts: 902
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    Why not keep the DB pension and buy some life insurance then?
  • dunstonh
    dunstonh Posts: 116,033
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    Possibly my fault as i am terrified of the ups and downs of investments, to put it into perspective all our savings are in cash accounts �� �� ��

    Your fear of investment risk means you are suffering inflation risk and shortfall risk. Risks that are more likely to cause a lower outcome than investments.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • xylophone
    xylophone Posts: 44,139
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    will get my state pension at 67.

    Have you and your spouse both obtained new state pension statements?

    https://www.gov.uk/check-state-pension

    Your deferred pension is revaluing in deferment - when you left were you given a statement of deferred benefits showing the pre 88/post 88 GMP and excess?

    If you wish to transfer out, why not to your SIPP?
  • RADDERS
    RADDERS Posts: 241
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    xylophone wrote: »
    Have you and your spouse both obtained new state pension statements?

    https://www.gov.uk/check-state-pension

    Your deferred pension is revaluing in deferment - when you left were you given a statement of deferred benefits showing the pre 88/post 88 GMP and excess?

    If you wish to transfer out, why not to your SIPP?

    Yes both have latest state pension forecasts, both contracted out, I am 5 years short, hubby is 7 years short.
    Yes got a statement but I didn't join the scheme until 89 so no worries there.
    I have only got the SIPP that I opened with HL to put my last years salary into, and it is held in cash at the moment - I know 😱
    Thanks
  • xylophone
    xylophone Posts: 44,139
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    edited 8 June 2017 at 1:18PM
    I didn't join the scheme until 89 so no worries there.

    Then you have a post 88 GMP shown on your statement of benefits at leaving?
  • RADDERS
    RADDERS Posts: 241
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    xylophone wrote: »
    The you have a post 88 GMP shown on your statement of benefits at leaving?

    Post GMP is only £340
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