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    • tiswiz
    • By tiswiz 5th Dec 17, 9:14 PM
    • 3Posts
    • 0Thanks
    tiswiz
    impossible to find FA for DB transfer
    • #1
    • 5th Dec 17, 9:14 PM
    impossible to find FA for DB transfer 5th Dec 17 at 9:14 PM
    It is impossible to find a FA to transfer my £36k LGPS DB pension to a DC so I can take it out as a lump sum. 1st they are paranoid about getting sued in the future, 2nd they feel the risk to high for anything under £100k & 3rd if they find you to be an insistent client they up their fee so in effect they are scamming you which was what these pension rules were designed to minimise in the first place, does the government realise the pension freedom revolution seems to only apply to those with contributory pensions not those with benefit or final salary schemes?
Page 1
    • JoeCrystal
    • By JoeCrystal 5th Dec 17, 9:18 PM
    • 1,302 Posts
    • 777 Thanks
    JoeCrystal
    • #2
    • 5th Dec 17, 9:18 PM
    • #2
    • 5th Dec 17, 9:18 PM
    It is impossible to find a FA to transfer my £36k LGPS DB pension to a DC so I can take it out as a lump sum. 1st they are paranoid about getting sued in the future, 2nd they feel the risk to high for anything under £100k & 3rd if they find you to be an insistent client they up their fee so in effect they are scamming you which was what these pension rules were designed to minimise in the first place, does the government realise the pension freedom revolution seems to only apply to those with contributory pensions not those with benefit or final salary schemes?
    Originally posted by tiswiz
    Because it was meant to apply only these with DC pension schemes. That what the pension freedom is for. I would not transfer out LGPS unless you got very pressing reason. So how much pension LGPS promise to pay? Considering that the transfer value of LGPS tend to be much lower compared to these in private sector DB pension schemes?
    • kidmugsy
    • By kidmugsy 5th Dec 17, 9:19 PM
    • 9,893 Posts
    • 6,670 Thanks
    kidmugsy
    • #3
    • 5th Dec 17, 9:19 PM
    • #3
    • 5th Dec 17, 9:19 PM
    1st they are paranoid about getting sued in the future
    Originally posted by tiswiz
    I imagine that they are cautious rather than paranoid. Presumably they've seen the courts often side with essentially crooked customers.
    Free the dunston one next time too.
    • dunstonh
    • By dunstonh 5th Dec 17, 9:26 PM
    • 89,845 Posts
    • 56,494 Thanks
    dunstonh
    • #4
    • 5th Dec 17, 9:26 PM
    • #4
    • 5th Dec 17, 9:26 PM
    It is impossible to find a FA to transfer my £36k LGPS DB pension to a DC so I can take it out as a lump sum.
    It wont be impossible but I would certainly be on guard and wary of that if that sort of request was made to me.
    1st they are paranoid about getting sued in the future,
    Good reason to be cautious (paranoid is not the word). Historically, the transaction you want to do is only right in around 1 in 10 cases. Throw in the fact you want to cash the pension in after transfer and pay a large amount of tax and you are just spiralling up the risk.

    2nd they feel the risk to high for anything under £100k
    Again good reason. The FOS and FCA still consider that people should have a certain amount of secure income before blowing the pension on cash lump sums.

    3rd if they find you to be an insistent client they up their fee so in effect they are scamming you which was what these pension rules were designed to minimise in the first place,
    Never heard or come across that before. However, I suppose it is theoretically possible if it is a type of adviser that breaks down the stages into cost segments. There is certainly increased risk of doing an insistent client transaction.

    However, it is not a scam and "these pension rules" were not brought in for your type of pension.

    does the government realise the pension freedom revolution seems to only apply to those with contributory pensions not those with benefit or final salary schemes?
    Yes they do. That was the whole point of pension freedoms. To give DC schemes more options. They were never designed to be used by DB schemes. Even though it is possible to utilise them in an indirect way.
    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 an Independent Financial Adviser local to you.
    • tiswiz
    • By tiswiz 6th Dec 17, 8:20 AM
    • 3 Posts
    • 0 Thanks
    tiswiz
    • #5
    • 6th Dec 17, 8:20 AM
    • #5
    • 6th Dec 17, 8:20 AM
    Has anyone else in a similar position found a FA willing to do DB transfer without the rip off fee? If so details please
    • PeacefulWaters
    • By PeacefulWaters 6th Dec 17, 8:47 AM
    • 7,284 Posts
    • 9,012 Thanks
    PeacefulWaters
    • #6
    • 6th Dec 17, 8:47 AM
    • #6
    • 6th Dec 17, 8:47 AM
    Has anyone else in a similar position found a FA willing to do DB transfer without the rip off fee? If so details please
    Originally posted by tiswiz
    How much do you think is a reasonable amount to pay?
    • HappyHarry
    • By HappyHarry 6th Dec 17, 9:08 AM
    • 455 Posts
    • 711 Thanks
    HappyHarry
    • #7
    • 6th Dec 17, 9:08 AM
    • #7
    • 6th Dec 17, 9:08 AM
    Has anyone else in a similar position found a FA willing to do DB transfer without the rip off fee? If so details please
    Originally posted by tiswiz
    Perhaps you could give an indication of what fee you think would be reasonable?

    n.b. Your attitude and language will not help you find a decent adviser willing to help. This is high-risk business for an adviser, and most will find the thought of doing a (relatively) small transfer for an insistent client with a poor attitude would not be attractive business. You may want to tone down your approach.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • Malthusian
    • By Malthusian 6th Dec 17, 9:40 AM
    • 3,433 Posts
    • 5,251 Thanks
    Malthusian
    • #8
    • 6th Dec 17, 9:40 AM
    • #8
    • 6th Dec 17, 9:40 AM
    It is impossible to find a FA to transfer my £36k LGPS DB pension to a DC so I can take it out as a lump sum. 1st they are paranoid about getting sued in the future, 2nd they feel the risk to high for anything under £100k & 3rd if they find you to be an insistent client they up their fee so in effect they are scamming you which was what these pension rules were designed to minimise in the first place, does the government realise the pension freedom revolution seems to only apply to those with contributory pensions not those with benefit or final salary schemes?
    Originally posted by tiswiz
    They are perfectly right to be paranoid, you accused them of scamming you when all they'd done was give you a quote, they hadn't taken a penny off you. When you have spent all your money you will again accuse them of scamming you and you'll complain to the FOS.

    In my opinion you should forget it. No reputable adviser will transact this.

    What do you need the money for?
    • Deneb
    • By Deneb 6th Dec 17, 10:00 AM
    • 249 Posts
    • 184 Thanks
    Deneb
    • #9
    • 6th Dec 17, 10:00 AM
    • #9
    • 6th Dec 17, 10:00 AM
    Has anyone else in a similar position found a FA willing to do DB transfer without the rip off fee? If so details please
    Originally posted by tiswiz


    No. I looked into it for my (relatively) small LGPS pension last year, but decided with the rate at which LGPS calculate a CETV, I would need a lobotomy to consider it good value.
    • tiswiz
    • By tiswiz 6th Dec 17, 11:24 AM
    • 3 Posts
    • 0 Thanks
    tiswiz
    Maybe i have a reason for my atitude, FA turned up to my house in new sportscar, initial consultation i was told fee would be £1k, later on had 2nd more comprehensive meeting where fee went up to £3k, like I said FAs ripping us off
    • HappyHarry
    • By HappyHarry 6th Dec 17, 11:38 AM
    • 455 Posts
    • 711 Thanks
    HappyHarry
    Maybe i have a reason for my atitude, FA turned up to my house in new sportscar, initial consultation i was told fee would be £1k, later on had 2nd more comprehensive meeting where fee went up to £3k, like I said FAs ripping us off
    Originally posted by tiswiz
    Maybe you do have a reason for your attitude, and maybe you don't. My point was, it's not going to help you.

    I'm not sure what the adviser's car has to do with your attitude? Would it be different if the car was five years old, or if the car was an estate car instead of a sportscar?

    From my understanding, the adviser estimated a £1,000 fee, then completed some fact-finding leading them to fully understood your position, and then said that the fee would be £3,000. You then decided not to pay this fee.

    Just how are you being ripped-off and scammed?
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • dunstonh
    • By dunstonh 6th Dec 17, 11:41 AM
    • 89,845 Posts
    • 56,494 Thanks
    dunstonh
    Maybe i have a reason for my atitude, FA turned up to my house in new sportscar,
    Jealousy is not a reason to have an attitude. People who work hard are entitled to spend their money how they like. Maybe he doesnt drink or smoke and puts his money into his car. Maybe that is his hobby. You don't know anything about their lifestyle. Maybe his wife is the main earner or it was inherited money.

    Also, sports cars dont necessarily cost much. Mine cost about a third less than the family car.
    initial consultation i was told fee would be £1k, later on had 2nd more comprehensive meeting where fee went up to £3k, like I said FAs ripping us off
    Maybe once he understood your personality and what you actually wanted to do (which is almost certainly a bad thing to do), he upped the charge to act as a passive blocker. Can't see any rip off here though.
    Last edited by dunstonh; 06-12-2017 at 11:44 AM.
    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 an Independent Financial Adviser local to you.
    • iro
    • By iro 6th Dec 17, 4:54 PM
    • 35 Posts
    • 16 Thanks
    iro
    Just completed my transfer very very happy!
    • iro
    • By iro 6th Dec 17, 5:02 PM
    • 35 Posts
    • 16 Thanks
    iro
    3% of the cetv but that is the best price I could find, has anyone done it cheaper?.
    • HappyHarry
    • By HappyHarry 6th Dec 17, 5:23 PM
    • 455 Posts
    • 711 Thanks
    HappyHarry
    3% of the cetv but that is the best price I could find, has anyone done it cheaper?.
    Originally posted by iro
    In this situation, size is important. If looking at percentages, I have advised on a DB transfer for less than 0.5% of the CETV. But it was a substantial transfer.

    On a pot of £36000 such as the OPís, 3% would be quite cheap.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • AlanP
    • By AlanP 6th Dec 17, 5:34 PM
    • 987 Posts
    • 700 Thanks
    AlanP
    Just completed my transfer very very happy!
    Originally posted by iro
    Was that from the LGPS?
    • iro
    • By iro 6th Dec 17, 6:29 PM
    • 35 Posts
    • 16 Thanks
    iro
    3% of the transfer value
    • iro
    • By iro 6th Dec 17, 6:30 PM
    • 35 Posts
    • 16 Thanks
    iro
    Paid from the transfer value when it arrived at its destination outside the DBS
    • iro
    • By iro 6th Dec 17, 6:39 PM
    • 35 Posts
    • 16 Thanks
    iro
    Very happy no longer need to rely on the rules being changed and if I drop dead tomorrow a large cash payment goes to my family.

    This is not meant to be advice it just suits my own circumstances, please seek your own advice.

    The FCA make you use an IFA and they charge an amount which they are entitled to do but there is not a lot of choice in my experience, because many IFAs are not in a position to offer advice on this type of transaction.
    • hyubh
    • By hyubh 6th Dec 17, 8:34 PM
    • 1,978 Posts
    • 1,490 Thanks
    hyubh
    Just completed my transfer very very happy!
    Originally posted by iro
    Your fellow council-taxpayers will thank you for it, if they knew the ins and outs. And I salute your public spiritness - perhaps Nigel Farage might read this thread and think similar thoughts about his EU pension...?
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