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  • FIRST POST
    • lvader
    • By lvader 13th Sep 17, 3:21 PM
    • 1,887Posts
    • 1,601Thanks
    lvader
    Barclays DB pension transfer
    • #1
    • 13th Sep 17, 3:21 PM
    Barclays DB pension transfer 13th Sep 17 at 3:21 PM
    Hi,

    I'm looking to transfer my Barclays DB pension into a Sipp, probabaly Interactive investor, where I currently have a stocks and shares ISA. The transfer value is around 390k and would otherwise be worth £11750 per annum in 9 years time when I turn 60. I have other DC pensions currently worth £320k and savings of around 100k. I was diagnosed with cancer last December and although technically given the all clear, survival rates for this kind of cancer are qute e low even once removed with surgery and chemo . Prior to being diagnosed I was intending to retire at 55, I'm now looking to bring that forward a couple of years and use savngs to finish work in about 18/24months time when I will be 52/53.

    I have contacted a couple of IFAs and they both wanted 2-3% and wanted to manage the pension, their sales talk gave me very little confidence. I self manage my other pensins and wish to do the same going forward.

    Any advise or IFA recomendations would be appreciated.

    Thanks
Page 1
    • dunstonh
    • By dunstonh 13th Sep 17, 4:24 PM
    • 89,476 Posts
    • 54,945 Thanks
    dunstonh
    • #2
    • 13th Sep 17, 4:24 PM
    • #2
    • 13th Sep 17, 4:24 PM
    I have contacted a couple of IFAs and they both wanted 2-3% and wanted to manage the pension,
    IFAs are not allowed to insist on ongoing servicing. It is a choice you make. If you dont want it then you dont have it.

    However, some FAs will have no choice on the matter and many people mix up IFAs and FAs. If you use a sales distribution method, then you may not get the choice. Stick to the advice distribution method. Tell them you intend to self manage and do not require ongoing servicing.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • xylophone
    • By xylophone 13th Sep 17, 4:38 PM
    • 22,872 Posts
    • 13,229 Thanks
    xylophone
    • #3
    • 13th Sep 17, 4:38 PM
    • #3
    • 13th Sep 17, 4:38 PM
    You are aware that you will need a Pension Transfer Specialist.

    http://www.pruadviser.co.uk/content/knowledge/technical-centre/pension_transfer_conversion/


    Currently a pension transfer specialist must have CF30 (customer function) and hold a qualification from:

    G60 or AF3 (CII)
    Pensions paper of Professional Investment Certificate (IFS)
    Fellow/Associate of Pensions Management Institute
    Fellow/Associate of Faculty of Actuaries
    Full details of the qualifications accepted are available in the FCA Training and Competence Handbook. The FCA heavily discourage direct offer or execution only in pension transfers and if this is to take place then the firm must make, and retain indefinitely, a clear record that no advice was given.

    The FCA is proposing to incorporate a new regulated activity (Article 53E) by changing the existing named activity ‘advising on pension transfers and pension opt outs’ to ‘advising on pension transfers, conversions and opt outs’. This newly titled activity will encompass both the existing named activity and the new specified activity under Article 53E. It is proposed that firms with existing permission will be automatically grandfathered.

    COBS requirements

    COBS has detailed requirements (COBS 19.2) which must be followed before a pensions transfer specialist can advise on a transfer. The firm has to:

    compare the benefits which are likely to be paid under the defined benefits scheme with the benefits payable under the PP/stakeholder and give the client a copy of this comparison highlighting factors which support or do not support the firm's advice; and
    give the client enough information to make an informed decision but also try to make sure that the client understands the comparison and the advice given.


    Discussion here http://forums.moneysavingexpert.com/showthread.php?t=5542807

    https://www.finalsalarytransfer.com/Uploads/1435150759Tideway-Why-Use-Tideways-Final-Salary-Transfer-Advice.pdf

    https://www.first-equitable.co.uk/final-salary-pension-transfer-advice/ may be worth a look.
    • bigadaj
    • By bigadaj 13th Sep 17, 6:40 PM
    • 9,945 Posts
    • 6,353 Thanks
    bigadaj
    • #4
    • 13th Sep 17, 6:40 PM
    • #4
    • 13th Sep 17, 6:40 PM
    IFAs are not allowed to insist on ongoing servicing. It is a choice you make. If you dont want it then you dont have it.

    However, some FAs will have no choice on the matter and many people mix up IFAs and FAs. If you use a sales distribution method, then you may not get the choice. Stick to the advice distribution method. Tell them you intend to self manage and do not require ongoing servicing.
    Originally posted by dunstonh
    An IFA can choose to take on work or not and as you've said before price can be an effective barrier.

    In a high risk area they probably wouldn't consider the fee to be sufficient without the ongoing income, the OP can't force them to accept terms if they don't want to.
    • rjw4
    • By rjw4 13th Sep 17, 8:01 PM
    • 293 Posts
    • 172 Thanks
    rjw4
    • #5
    • 13th Sep 17, 8:01 PM
    • #5
    • 13th Sep 17, 8:01 PM
    It's not just about ongoing income, more that some firms want to ensure they manage the investment risk ongoing so you are more likely to meet the critical yield/try to mitigate investment losses.

    Also, a bit of a negative statement but please remember if you were to die within 2 years of the transfer, it may be included in your estate for inheritance tax purposes.
    I am an Independent Financial Adviser (IFA). Any posts on here are for information and discussion purposes only and should not be seen as financial advice.
    • dunstonh
    • By dunstonh 14th Sep 17, 11:40 AM
    • 89,476 Posts
    • 54,945 Thanks
    dunstonh
    • #6
    • 14th Sep 17, 11:40 AM
    • #6
    • 14th Sep 17, 11:40 AM
    Lorraine's spam is also a breach of the FCAs guidelines as it fails to give disclosures that are required on financial promotions. The FCA treat forum posts and any social media posts as financial promotions when they are written in a way to obtain business.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
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