IFA fees advice

I currently have a SIPP with Standard Life and simply hoped to transfer the DB pension pot of c £115,000 to them (if they accept them)

The Std Life SIPP is a bit out of date now compared to other options. Their Wrap SIPP or Elevate SIPP are likely better position in terms of costs and functionality. So, moving it to your existing product may actually be more costly than moving that and the transfer to an alternative. This is the sort of thing an IFA would look at.

and then split the monies into 3 or 4 funds to spread the risk.

What size if the transfer value? A bespoke portfolio of single sector funds would see you having around 10 funds. Larger values could see more.

s I have said earlier all being well I would never need to touch this pension pot and would live off other income.

But is that the best option in terms of tax efficiency?

Aegis wrote: »

In my view, the adviser was very foolish to do that. The FCA has made it clear that DB transfers must be assessed based on where the transferred sum will actually be invested rather than against some hypothetical model, with particular regard to whether the critical yields are realistic based on the chosen investments. What they did for you was in breach of pension transfer regulations, and could feasibly see them having their permissions to carry out that kind of business reviewed. Not a risk I'd ever take for myself or my company!

Aegis is absolutely right. There’s nothing to prevent an adviser giving advice to some one who wants to invest for themselves but they have to analyse the transfer on this basis and make a judgement call on whether the investments you are intending to invest in make sense for someone who won’t have a DB pension to meet their needs any more.