Forced to get an Financial Advisor

cganesh

xylophone-It is a benefit pension, transfer value of cash equivalent. I have checked the amount quoted.

atush

If it is an older Barclays pension, it isa defined benefit/final salary one. Which is worth far more than the transfer value unless you are of ill health likely to die young, with no spouse.

And as said, the fact that a guarantee is mentioned (which are lost on transfer) means you will lose out on the guarantee.

So that is why it it a bad idea.

RichandJ

Barclays 20 years ago. CETV mentioned. Smells uncommonly like DB to me, hence the need for (I)FA sign off.

RichandJ

atush wrote: »

If it is an older Barclays pension, it isa defined benefit/final salary one. Which is worth far more than the transfer value unless you are of ill health likely to die young, with no spouse.

And as said, the fact that a guarantee is mentioned (which are lost on transfer) means you will lose out on the guarantee.

So that is why it it a bad idea.

I'm wondering if the guarantee mentioned is GMP as well, it's in the right time frame if Barclays was contracted out of SERPS.

dunstonh

I am not apparently allowed to make bad decisions, or any decisions without paying for someone else.

You are allowed to make bad decisions, as already said. You are just not allowed to make awful ones. You are also paying for someone else if you use Pru directly. The charges on the product pay the original agent that set the policy up (if that agency code is still active) or the money goes to Pru if it isnt.

Incidentally, I am not stupid and I should be able to make my own financial decisions!

So, why are you trying to top up a Pru policy then?

I have been told by the pru that its all ok but that it needs to officially go via an IFA. There are no fees or tax payments associated with it so I would have to pay nothing extra,( oh except I can't because I have to pay an adviser), so 'incrementing it would not be more expensive'

Almost certainly, the IFA will tell you that topping up the Pru is the expensive option and that transferring Pru and Barclays to a new modern cheaper plan is the best option. Seeing as Barclays Life no long exist (now ReAssure) then the only Barclays pensions out there would be occupational. The reference to guarantee in the earlier post also suggests GMP which would fit with occupational. If the Barclays pension is occupational then an IFA is unlikely to recommend transfer of that because it is almost certainly a really bad thing to do. Saving you tens of thousands of pounds in the process

cganesh

Atush- so you are saying that the guaranteed amount they say they can transfer is NOT the amount they will transfer? That's just ridiculous. I have also looked at their annual income projection and unless I live until 100 it doesn't look very good at all. If they are a company that are lying about how much they will transfer now, which is what you appear to be saying, then maybe I don't want to keep my money with them in case they are lying when it comes to my retirement. However, you all seem incredibly suspicious about it all, so I will either pay out for this IFA ( apparently I will have to) or just leave it where it is. Makes no odds if I take it now or later I guess, I just thought it would be easier in one place. I think I trust my 'receiver' more.

cganesh

dunstonh- your post crossed. I just wanted to top up my ppp with the Barclays one to put it all in one place really and Barclays say there are no fees, and the Pru say there are no fees , so I don't understand why its such a bad idea. I didn't chase it. Barclays sent me the details as I am getting close to retirement I guess and the transfer was stated as an option. As I say, the annual pension doesn't look like much so just thought I'd move it and I suppose I trust the receiving company more-lol.

RichandJ

cganesh wrote: »

Atush- so you are saying that the guaranteed amount they say they can transfer is NOT the amount they will transfer? That's just ridiculous. I have also looked at their annual income projection and unless I live until 100 it doesn't look very good at all. If they are a company that are lying about how much they will transfer now, which is what you appear to be saying, then maybe I don't want to keep my money with them in case they are lying when it comes to my retirement. However, you all seem incredibly suspicious about it all, so I will either pay out for this IFA ( apparently I will have to) or just leave it where it is. Makes no odds if I take it now or later I guess, I just thought it would be easier in one place. I think I trust my 'receiver' more.

No, that's not what's being said. A Cash Equivalent Transfer Value (CETV), which you've partially mentioned is a specific term relating to defined benefit (aka final salary) pension schemes. A CETV is guaranteed for 3 months from date of calculation providing all forms/documents required are received in that 3 month period.

Based on what you've told us we think you may have a Guaranteed Minimum Pension (GMP) within the Barclays pension. You can confirm that either by advising if you worked for the bank or re-reading the paperwork. People can then comment further.

cganesh

To be honest, you have all frightened me, when I assumed it would be a simple procedure and I'm not going to waste money on an IFA if he's just going to say leave it in there for a while. I shall delay the decision and if Barclays go bust and I lose all my money I will die and come back to haunt you all-haha.

cganesh

arghh..Richard. it does not say CETV, it says Guaranteed transfer value which incs GMP and other rights. Yes I am given 3 months to do the tfr on the amount quoted-does that help? Sorry, it is all new language to me, and I am only going on what the two companies have told me I can do.