Company pension into personal?

Bumblies

I transferred an old company pension into my SIPP but I had to obtain an IFA's recommendation (cost £450 + VAT) before the SIPP administrator would accept the transfer and the company pension scheme trustees deducted 1/3rd of the transfer value because the scheme was in deficit. Still I now have freedom the do what I want with the money instead of receiving a modest fixed amount, especially after the changes due in April 2015.

greenglide

So you transferred a Defined Benefit pension to a SIPP and sacrificed a third of the transfer value?

I hope you knew what you were doing!!!!!!!

xylophone

I hope you knew what you were doing!!!!!!!

That the IFA knew what he was doing?......
Is he not liable for poor advice if such it proved to be?

greenglide

but I had to obtain an IFA's recommendation (cost £450 + VAT)

The price for an IFA to recommend a move from DB to DC seems remarkably low?

I had assumed that this was "sign off" (potentially with a "don't do it" statement) rather than a "recommendation".

kidmugsy

Bumblies wrote: »

I transferred an old company pension into my SIPP ... the company pension scheme trustees deducted 1/3rd of the transfer value because the scheme was in deficit. Still I now have freedom the do what I want with the money instead of receiving a modest fixed amount, especially after the changes due in April 2015.

You wouldn't have received a fixed amount though: it would have had inflation-protection.

Anyway, anyway; what is it that you want to do with the money?

dunstonh

The price for an IFA to recommend a move from DB to DC seems remarkably low?

Yes. For such high risk business where the majority of the cases are to recommend staying put, that is low.

Maybe as the adviser was not personally transacting the switched into product or recommending the investments, it may have been little more than generic report pointing out the risks rather than a full cost/benefit analysis you would normally expect.

mgdavid

and the OP never came back!

Kendall80

This issue is currently of concern for me also. I'm awaiting correspondence from Capita to confirm whether my old company pension is defined benefit or not. As its a small amount I may well proceed with the transfer anyway. However, I would not be happy to have to pay for an IFA or sacrifice any of the transfer value (£17k) as in post 12 above.