Transferring My Pension

TinyTom

I'm looking to transfer an occupational pension from an old employer in order to access the 25%

I understand that I'll need independent professional help in order to achieve this and just wondered if there is a standard rate for such work ie how much would it take from my cash settlement

Please note I'm sure a number of people will advise me 'cashing in' my pension in this way isn't me best option and I appreciate your concerns however this is the ONLY option for me

Thanks

TT

PensionTech

Are you over age 55?

dunstonh

I understand that I'll need independent professional help in order to achieve this and just wondered if there is a standard rate for such work ie how much would it take from my cash settlement

Not standard as it will vary with different firms. Assuming it is a defined benefits transfer (as that is the type that needs and IFA sign off) it is a high risk transaction that is statistically unlikely to be the right thing for you to do. In those cases, you tend to find the fees are high. Often running around many thousands of pounds (£3000-£5000 would not be unexpected).

TinyTom

PensionTech wrote: »

Are you over age 55?

Yes, I'm 55 now

This is probably going to sound very naive but rather than hawk this around various independent advisers cant I just let my bank arrange this - I guess that clapping sound was 100's of palms hitting foreheads

TT

jem16

TinyTom wrote: »

Yes, I'm 55 now

This is probably going to sound very naive but rather than hawk this around various independent advisers cant I just let my bank arrange this - I guess that clapping sound was 100's of palms hitting foreheads

TT

Most banks don't have advisers with the necessary qualifications to carry out such a transfer.

It would also be a very bad idea even if you did manage to find such a bank as they would only be able to offer you their own products.

xylophone

Any receiving scheme is likely to refuse a DB pension transfer unless an IFA has been involved - see here for IFA qualifications required http://www.fca.org.uk/firms/financial-services-products/investments/pension-transfers

Except in certain limited circumstances, such a transfer is likely to be detrimental to your long term financial wellbeing.

http://www.thisismoney.co.uk/money/pensions/article-2598971/Should-transfer-final-salary-pension.html

You will see from posts in the comments section of the above, transferring out is proving difficult....

TinyTom

Any one know when Mr Osborne's free and independent advice will be made available?

xylophone

Any one know when Mr Osborne's free and independent advice will be made available?

https://forums.moneysavingexpert.com/discussion/5021233

macca1974

There won't be free independent advice in a regulated sense, it will be free guidance and it won't cover transfers out of DB schemes. But that is meant to start from April 2015.

They haven't released all of the information yet, but it looks like if you want to transfer a DB scheme that is worth over £30K, you will need to take independent financial advice which will mean paying a fee. Also, as advice is heavily regulated and if they get it wrong you can complain via the ombudsman, there is every chance that the advice will be that you don't transfer and the adviser wouldn't sign off or facilitate the transfer. You'd still have to pay the fee of course...

dunstonh

TinyTom wrote: »

Any one know when Mr Osborne's free and independent advice will be made available?

There is not free and independent advice. That has been backtracked on.

It is just basic guidance now and that guidance may lead to you being told to seek advice.

atush

Basically, it is generally a very bad idea to transfer a DB pension into a DC one to access the 25%. So if you want to do that, you will have to pay an IFA to do it. The amount you will have to pay, will be based on the risk factor and the value of your DB pension. So call a few IFAs in your area thru unbiased.co.uk, and ask about the approx charge.

Unless you are ill and due to die soon/young, and have no spouse or dependants, transferring a DB pension is probably not in your best interest. So this increases the risk of missale so you may have trouble finding an IFA to sign off on it.