My meeting with the FA
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Muscle750
Posts: 1,075 Forumite
Ive set the ball in motion to access my 25% TFLS, However i was advised to get a transfer value on my froze FS pension to see wether it be viable to transfer it into my remaining Pru pension or other.
The reason been that if i was to drop a week after i retire my wife would only see a min pension, where as if the money was in my Pru Pension it would be part of my estate rather than loosing quite a considerable amount. However im not so sure it would be such a good idea. Obviously the only way is to work out how much i would get when i retire which thoughts are around the £6000 PA and then see how long id have to go to get my money back so to speak.
The FA said many companies are willing to offer a good transfer value as they want you gone. Plus one concern i have got is the company i work for went from a 18 million blackhole in its FS scheme to over 33 million in 12 months and said they have had poor returns and had not so to speak used any monies from it for there own purpose. Does seem strange thou all of a sudden most of the trustees have appeared to left /resigned recently.
Im waiting on the value of my FS scheme which should be here in 10 days. With such a blackhole in the scheme im not holding out any big surprises
The reason been that if i was to drop a week after i retire my wife would only see a min pension, where as if the money was in my Pru Pension it would be part of my estate rather than loosing quite a considerable amount. However im not so sure it would be such a good idea. Obviously the only way is to work out how much i would get when i retire which thoughts are around the £6000 PA and then see how long id have to go to get my money back so to speak.
The FA said many companies are willing to offer a good transfer value as they want you gone. Plus one concern i have got is the company i work for went from a 18 million blackhole in its FS scheme to over 33 million in 12 months and said they have had poor returns and had not so to speak used any monies from it for there own purpose. Does seem strange thou all of a sudden most of the trustees have appeared to left /resigned recently.
Im waiting on the value of my FS scheme which should be here in 10 days. With such a blackhole in the scheme im not holding out any big surprises
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The FA said many companies are willing to offer a good transfer value as they want you gone. Plus one concern i have got is the company i work for went from a 18 million blackhole in its FS scheme to over 33 million in 12 months and said they have had poor returns and had not so to speak used any monies from it for there own purpose. Does seem strange thou all of a sudden most of the trustees have appeared to left /resigned recently.
Im waiting on the value of my FS scheme which should be here in 10 days. With such a blackhole in the scheme im not holding out any big surprises
You are listening to a FA, not an IFA by the sounds of it, So as far as suggesting you transfer your FS transfer value to the Pru, well, he would say that wouldn't he?
Many FS pensions make provision for a spouse pension of typically half the value to the pensioner. You should inform yourself of the positives about your FS pension rather than just focus on the reasons to transfer it to the Pru and bump up his bonus/sales target
To take a balanced view for that you need an Independent FA, www.unbiased.co.uk or to think for yourself from a balanced viewpoint, rather than looking for all the reasons to transfer it. The transfer value will probably be a large sum of money. That's telling you something about the cost of providing the defined benefit that you are giving up. 0 -
It may have been easier if you had kept all your posts on one thread. I think this is now your 5th thread on this subject.
From memory, this was a Pru sale rep that you were seeing....However i was advised to get a transfer value on my froze FS pension to see wether it be viable to transfer it into my remaining Pru pension or other.
1 - its unlikely to be frozen
2 - I didn't think Pru employed FAs that could do DB transfers - you may wish to check.
It would not be part of your estate. However, the pension would be available to her.where as if the money was in my Pru Pension it would be part of my estate rather than loosing quite a considerable amount.The FA said many companies are willing to offer a good transfer value as they want you gone.
Although gilt yields and the current calculation standards are by far the biggest reason.
Most schemes saw their shortfalls increase over recent years. In most cases, it is down to the revised calculations on liability and not something to be concerned about. It requires more analysis and should not be viewed without context.Plus one concern i have got is the company i work for went from a 18 million blackhole in its FS scheme to over 33 million in 12 months and said they have had poor returns and had not so to speak used any monies from it for there own purpose. Does seem strange thou all of a sudden most of the trustees have appeared to left /resigned recently.
You certainly do not want to be using a tied FA for this.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.0 -
I didn't think Pru employed FAs that could do DB transfers - you may wish to check.
https://www.ftadviser.com/pensions/2017/02/23/prudential-to-provide-defined-benefit-transfer-advice/
https://www.moneymarketing.co.uk/pru-db-transfer-advice-will-safe/0 -
Crickey. Tied sales reps doing DB pension transfers. Did the insurers not learn their lesson last time around!
I'm not sure who is more foolish. The insurer getting their reps to give DB transfer advice or the consumer that uses a tied FA for such a thing.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.0 -
Crickey.
Just not cricket?:)0 -
I must admit i did find them a bit to "Pushy" for my liking still i doubt very much wether i will transfer my FS value but it will be interesting just to see what the offer is.Plus of course the fees involved are not to be sniffed at id imagine0
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Not many people drop dead a week after retiring. Most people underestimate their likely life expectancy by several years.
Such an unbalanced, one-sided perspective annoys me intensely. The other side of that argument is that if you live well beyond the life expectancy for your age) and 50% of people do, your wife would have to hope there's something still left in the pot - whereas the DB scheme would pay her a spouse’s pension for life, irrespective of how long you lived.
That comment smacks of an adviser keen to get more business and funds under management. Grrrrr!0 -
I must admit i did find them a bit to "Pushy" for my liking still i doubt very much wether i will transfer my FS value but it will be interesting just to see what the offer is.Plus of course the fees involved are not to be sniffed at id imagine
And, most important of all, you would only be offered the Pru product and their investments. I'm still working, finishing off a pension case and for that one, in respect of costs, Pru came out 11th and last on their two plan types available (after filtering out providers/plans that did not meet criteria).
I also have other concerns about Pru. The rumours persist that the Pru is looking to dump its UK book and leave the UK to focus on Asia. Restructuring started earlier this year was seen as a way to prepare for sale. If Pru sell their book, you could end up at Reassure or Phoenix or one of the others that buys the book to run it down. It is already quite advanced in the sale of its annuity book.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.0 -
Tbh, you dont want a tied sales agent to even help you access your TFLS.
Get an independant agent, and give the prue the shove.0 -
I would also say try to run some numbers yourself (Excel would do), taking your initial FS pension and looking at how it increases at a given inflation rate - I tried 2% when I looked at this some years ago, but of course it is more than that at the moment.
It shows you how much income the FS could be worth over say 20 years (or more). Comparing that to the initial transfer amount is interesting!
Obviously once transferred one hopes that the DC pot continues to provide a steady and rising income, but that is not guaranteed unlike the FS, and then of course you need to think what the comparison would be if you lived 30 years, or if your wife out-lived you by 10-20 years.
My FS was at a similar level to yours when I spoke to an IFA a year or so before drawing it. He would have been happy to investigate transfer, but my numbers suggested I would do better leaving it alone. I am still of that opinion.0
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