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Do you think pension tranfers need to be quicker, smoother and cheaper?
Former_MSE_Wendy
Posts: 929 Forumite
The Government's reviewing whether people need further financial advice when transferring a pension and wants to know your views on early exit penalties, the transfer process and how greater clarity can be provided on the circumstances in which individuals should seek financial advice.
Have you found charges excessive and transfers slow?
Did you take advice and did it help or hinder?
If you've ever really wanted to have your say about pension transfers now's your chance!
Take the pensions process survey to share your experiences and let us know what you think by replying below.
If you haven’t already, join the forum to reply.
If you aren’t sure how it all works, read our [URL="http://www.moneysavingexpert.com/site/forum-introduction-guide!]Forum Intro Guide[/URL]
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Have you found charges excessive and transfers slow?
Did you take advice and did it help or hinder?
If you've ever really wanted to have your say about pension transfers now's your chance!
Take the pensions process survey to share your experiences and let us know what you think by replying below.
If you haven’t already, join the forum to reply.
If you aren’t sure how it all works, read our [URL="http://www.moneysavingexpert.com/site/forum-introduction-guide!]Forum Intro Guide[/URL]
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Comments
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Cashing in a pension is a massive decision. Frankly I think it should be slow, maybe even slower than it is now.
DarrenXbigman's guide to a happy life.
Eat properly
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Save some money0 -
The Government's reviewing whether people need further financial advice when transferring a pension and wants to know your views on early exit penalties, the transfer process and how greater clarity can be provided on the circumstances in which individuals should seek financial advice.
Have you found charges excessive and transfers slow?
Did you take advice and did it help or hinder?
If you've ever really wanted to have your say about pension transfers now's your chance!
Take the pensions process survey to share your experiences and let us know what you think by replying below.
If you haven’t already, join the forum to reply.
If you aren’t sure how it all works, read our [URL="http://www.moneysavingexpert.com/site/forum-introduction-guide!]Forum Intro Guide[/URL]
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Would you like to pay the extra money to make it that way ?
The administrators who do this don't decide how TVs will be calculated, they just have to live with Actuary/Trustee/Consultant decisions.
Jesus wept.It only takes one tree to make a thousand matches, it only takes one match to burn a thousand trees. As well, the cars are all passing me, bright lights are flashing me.
Johnny Was. Once.
Why did he think "systolic" ?0 -
Pension transfers are slow at the moment due to the high volume of people doing this and strains being put on pension provider staff due to the government rushing through policies for their personal gain rather than speaking to providers and advisers before doing anything. The need to raise taxes on people who access their pots without advice and pay unnecessary tax to Mr Osborne.0
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"Do you think pension tranfers need to be quicker, smoother and cheaper?"
At whose expense?Free the dunston one next time too.0 -
Most of the providers using the options system transfer within 3 days. Paper based can take about 2 weeks but thats because paperwork needs to go both ways.
How much quicker does it need to be?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 -
Personally, I expressed the view that in general I see no reason for most transfers to cost more than they do for phones, gas, electricity and such.
As with the phones there can be exceptions where there has been an initial discount, on a phone, that has to be paid for if there is an early exit.0 -
I think pension transfers, where you have contributed for a period of time, say >3 years - should be free.
Also, any pension transfers from deferred pensions of, say, >10 years old since they started, should also be free.
The provider should have made their money from their fees so any exit payment is just them grabbing a final cut before it leaves them.0 -
I've just transferred 4 small DC pots into a SIPP. The fastest was done electronically and took less than a week, the slowest took nearly 7 weeks ( a Company DC pension).
What surprised me most when I chased up this last one,was that 3 of the policies transferred using BACS rather than some form of faster transfer.
Also one of the transfers was slowed down because the "losing" insurer sent everything to me including all the available options pack instead of returning the appropriate paperwork to the SIPP provider. This was a duplication of the bumph I'd been sent by them some weeks previously. This introduced at least an extra 8-10 days into the process.0 -
I think pension transfers, where you have contributed for a period of time, say >3 years - should be free.
It should be noted that there are no transfer penalties on modern pensions.
However, lets say your provider gave you 120% allocation on your pension contribution but has a annually reducing penalty if you transfer out to allow them to get back that extra allocation. What you are suggesting would be unfair as people could have got that 20% allocation waited three years and then transfer out at no cost with an extra 17% paid in by the pension company.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 -
There are penalties for transferring modern pensions even if not called that:
1. Say £25 per investment to transfer in specie from some providers even though this is not correlated with the amount of time required to do the work.
2. Some fixed transfer fees.
3. Time out of the market.
One day switching between all major providers at the same cost as phone companies, nil, would be a good thing.0
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