EL transfer sanity check

dazman_3

Hi,

Need some sanity check advice. Parents transfering what they can from EL into another pension fund. I've recommended any of the SIPP providors for HYP, commerical property etc re the great advice recieved on this board. However it seems they "cannot cope with the '12 pages' of forms and it's goverment legislation that they need to get a FI involved" (grr). Is this true, or what they are being fed by the dude in line for % of the profit once he puts it back into managed funds?

I thought you just filled out a transfer form from the new providor stating where your old funds were to be transfered to (this is what I saw when I was looking at transfering my pension)? Any advice greatly appreciated

Cheers,

Daz

Pal

You have "recommended" a SIPP and yet you are not sure what forms you have to complete to go ahead with a transfer?

I don't mean to be harsh here but if your parents are confused by transfer forms they need to complete, are they qualified to understanding how to invest in a HYI or commerical property portfolio within a SIPP? Or are you going "advise" them on that as well?

Perhaps your parents are simply looking for professional advice rather than information their son has gleaned from reading the random forum posts of complete strangers?

Each provider will have different transfer forms. I would suggest that they read the forms properly and you do the same. If they still don't understand then I would suggest that professional financial advice is the way to go.

What is an "FI" by the way?

dazman_3

Hi Pal,

Thanks for the info on the forms.

I have recommended they take charge of their finances purely to get them out of Equitable Life. I've referred to a Financial Advisor as a FI in my post. I don’t have to rely on the advice on strangers for general investment advice - we all have our own thoughts on that and comparison of performance is the only benchmark.

This is not my main concern however as it’s only an opinion, what I definitely don’t know anything about, is the actual process of transferring out of EL and if the specific statements along the lines of “government legislation that they need to get a FI involved" which they are getting from professional advice. What do you think?

EdInvestor

Hi Dazman

Are your parents just transferring their fund out of the EL ( I assume it is in the WP fund) to another provider?Or are they "taking benefits" - getting some tax free cash and taking an income ( via an annuity or income drawdown)? If the latter, this might mean they could avoid paying the MVA exit penalty at EL.

Procedure is as follows:

Select new provider and open account there. Write to EL instructing them to transfer the money.

There is no requirement to get financial advice: BUT in certain cases, they might lose out by transferring ( if the pension had been transferred to EL originally from a company pension fund and had a guaranteed minimum pension attached, for instance).
If you don't know about any of this, I would suggest you get your parents some qualified help.