Transferring out of a DB Scheme - looking for IFA Recommendation

achitophel

Hi

I'm strongly considering transferring out of an existing DB scheme into a SIPP which I'll set up.

I work as a tax partner in a City law firm and have done the reading around and am aware that it's generally considered to be a poor investment decision. However, in my case, I'm satisfied that it's better for me overall as:-

1) Existing scheme is hugely underfunded, but the scheme employer is currently offering to top up to what the CETV would be if no underfunding discount were to be applied to the transfer.

2) There is a material risk that the scheme employer will fail at some point in the next 20 odd years.

3) I perceive a material risk that the existing PPF provisions will also be changed at some point over the next 20 years such that the existing fallback guarantees either won't be in place or would be diluted (say for example by means testing) which would materially impact on the benefits I might receive.

I'm happy generally with my analysis but I understand that I can't transfer even to a SIPP without this advice. I also understand that I only need to prove to the SIPP trustee that I've been advised not that I'm following the advice, so again, I'm not looking for a sign-off or blessing from the IFA - I entirely understand why the investment perception of the transfer could be worse. What I am therefore looking for is reasonably priced advice on the subject and recommendations for an IFA to provide this.

Thanks in advance.

dunstonh

You will just have to phone around and find an IFA firm that is willing to accept insistent client overrule on occupational pension advice. They do exist but most will not do it.

gadgetmind

Can't you run a SIPP alongside to spread the risk?

bigadaj

dunstonh wrote: »

You will just have to phone around and find an IFA firm that is willing to accept insistent client overrule on occupational pension advice. They do exist but most will not do it.

Those that do will presumably charge quite highly given the risk element?

Aegis

achitophel wrote: »

Hi

I'm strongly considering transferring out of an existing DB scheme into a SIPP which I'll set up.

I work as a tax partner in a City law firm and have done the reading around and am aware that it's generally considered to be a poor investment decision. However, in my case, I'm satisfied that it's better for me overall as:-

1) Existing scheme is hugely underfunded, but the scheme employer is currently offering to top up to what the CETV would be if no underfunding discount were to be applied to the transfer.

2) There is a material risk that the scheme employer will fail at some point in the next 20 odd years.

3) I perceive a material risk that the existing PPF provisions will also be changed at some point over the next 20 years such that the existing fallback guarantees either won't be in place or would be diluted (say for example by means testing) which would materially impact on the benefits I might receive.

I'm happy generally with my analysis but I understand that I can't transfer even to a SIPP without this advice. I also understand that I only need to prove to the SIPP trustee that I've been advised not that I'm following the advice, so again, I'm not looking for a sign-off or blessing from the IFA - I entirely understand why the investment perception of the transfer could be worse. What I am therefore looking for is reasonably priced advice on the subject and recommendations for an IFA to provide this.

Thanks in advance.

Are you prepared for the possibility that an IFA might tell you it's an extremely bad idea and charge you for the transfer report anyway? If so, any London IFA should be able to help you out. What you then do with the report is up to you, of course, but most firms will not implement the transfer for you on the back of a recommendation not to proceed.