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Set up a pension for a single payment/transfer?
pippa80
Posts: 248 Forumite
Hi there lovely MSErs!
My OH recently changed jobs and has been told by his new employers that he cannot transfer any existing pensions savings into their (final salary - hurrah!) scheme.
He has recently had a letter from his old pension (nuvos) that he needs to nominate a new pension to transer his contributions to, or can be paid out in cash. The cash value is much lower than the transfer value.
Can he set up a private pension account for the transfer from nuvos and then not make any further contributions for the forseeable future?
Thanks wise people
My OH recently changed jobs and has been told by his new employers that he cannot transfer any existing pensions savings into their (final salary - hurrah!) scheme.
He has recently had a letter from his old pension (nuvos) that he needs to nominate a new pension to transer his contributions to, or can be paid out in cash. The cash value is much lower than the transfer value.
Can he set up a private pension account for the transfer from nuvos and then not make any further contributions for the forseeable future?
Thanks wise people
0
Comments
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Can he set up a private pension account for the transfer from nuvos and then not make any further contributions for the forseeable future?
Yes he can. Although he will find that most,if not all, providers will insist on an IFA signing off on it. Despite the transaction being a no-brainer, it is still classed as an occupational pension transfer. The FSA treat those as mis-sales unless proven otherwise. Even on non-advice cases.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 -
Yes he can. Although he will find that most,if not all, providers will insist on an IFA signing off on it. Despite the transaction being a no-brainer, it is still classed as an occupational pension transfer. The FSA treat those as mis-sales unless proven otherwise. Even on non-advice cases.
Is that a fact?0 -
saverjustice wrote: »Is that a fact?
Yes. The FSA positioned that about 2 years ago with regards to defined benefit schemes. It included direct to provider and direct offer.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 -
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Judging by the many posts we get from people who want to do it but dont want to use an IFA (as they want to DIY) it frustrates them enormously. Although, there have also been plenty of posts from those that would have done it DIY if they could be luckily this ruling has stopped them from making a bad mistake. In this case though, there ought to be discretion to allow transfers where the existing benefits cannot be retained without the need to be classed as full occupational transfers.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
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Thanks for the advice! I'll get him to contact an IFA :T0
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