Being forced to seek IFA on pension transfer

hyubh

dunstonh wrote: »

the problem is that in the eyes of the regulator it is still a defined benefit transfer and it would treat it the same way as someone outside of the 2 yaer period.

Out of interest, do you have a reference for that?

xylophone

Perhaps the OP should apply to Hargreaves Lansdown?

https://forums.moneysavingexpert.com/discussion/5053691

AlexMagd

Hi guys, thanks so much for replying! Sorry to come back to the thread so late.

For reference, I *am* leaving within two years and I have no option of keeping my money in the original pension account - in terms of the advice the options are extremely limited and it's clear that transferring is the best choice. I imagine if I had the option to keep my money in the account, that would be the best choice, but since it has to come out either way - I'd rather I got to keep the full amount! This is why I find it hard to understand why it's *mandatory* for me to get advice from an IFA, when there's really no advice to be offered.

The new pension is one of the new auto-enrolment schemes being rolled out by HMG. I was assured that transfer would be easy and (perhaps foolishly!) believed it; rather than go through the hassle of setting up a personal scheme I went with the one that my employer offered.

To settle the bet, my old pension is:

* public sector
* DB
* less than 2 years' service

From what I can gather, there seems to be no distinction between large pot pensions and small ones like mine - obviously in less than 2 years the amount I've invested isn't huge.

So if a signed declaration of liability (or any other statement) won't make a difference, is there anything that can be done? If not I suppose I'll have to find the cheapest IFA I can find - it sounds like all they need to do is confirm to the new provider that I sought their advice. It's hardly worth £500, which is what I've been quoted!

atush

Try hargreves lansdown. A you have to transfer it, they may take on the risk.

You'll never know until you try.

CathA

atush wrote: »

Try hargreves lansdown. A you have to transfer it, they may take on the risk.

You'll never know until you try.

If you read my thread 'Civil Service Pension Transfer' I'm in the same boat. No IFA is required to sign the transfer out, but an IFA sign off is usually required to transfer into a new scheme. I've contacted a few IFA's and even after asking if I could sign a waiver absolving them they have said they won't touch it. Like you I'm not financially illiterate but it seems like you can't do what you want as the FCA doesn't think you can be trusted to do what's right for your circumstances/choices.

hyubh

CathA wrote: »

If you read my thread 'Civil Service Pension Transfer' I'm in the same boat.

Surely two boats, as you have a deferred pension where AlexMagd does not.

atush

And her epsnion was a much larger amt and could be left there for a valuable DB pension later. This OP cannot.

Therefore is in a completely differently coloured boat.

And which is why our advice to the OP is different than our advice to her.

xylophone

I think the OP is in a different boat as he cannot remain in the pension scheme and loses by taking a refund of contributions.

In these circumstances, it is worth trying HL?

macca1974

It wouldn't hurt to ask HL the question to see what they say. The other option would be to ring round a few other pension providers that accept direct applications and ask them the question. A pain in the backside, but worth it for a saving of £500.

What will be interesting is what happens when the new pension rules come in and the Government insist on adviser sign off for any DB transfer...

atush

One of them, probably HL will take it as there is no downside risk.

A complaint can't be upheld, as there is no way the OP could leave the money in the DB pension.