Final salary scheme

mania112

There is nothing stopping you from doing what you want to do.

You will need to be 100% confident that you know the consequences (moving a pension which holds no investment risk to one which does), and you will need to ensure the Adviser is able to carry out this transfer (there's an extra qualification required that not all Advisers hold).

It's not a big drama really. You do what ever you like

jem16

mania112 wrote: »

It's not a big drama really. You do what ever you like

Providing you accept that it may be difficult to find an IFA willing to take it on as many won't touch it due to the high risk involved. It will most likely to be at a high fee if you do find one willing to carry it out.

Mands

xylophone wrote: »

From your original post, where you have said that Arcadia provided the IFA, are we to gather that Arcadia has approached the deferred pensioners and offered an enhancement to transfer out?

I'm not the OP but am a member of the same pension scheme. Arcadia are making enhanced offers to some deferred pensioners, yes.

Mands

Cyberman60

Mands wrote: »

I'm not the OP but am a member of the same pension scheme. Arcadia are making enhanced offers to some deferred pensioners, yes.

Mands

Well, what a surprise !! They are trying to save themselves money, so it is clear that you would be better off keeping the deferred pension.

Here's a clue. Look up GMP !!!

mania112

jem16 wrote: »

Providing you accept that it may be difficult to find an IFA willing to take it on as many won't touch it due to the high risk involved. It will most likely to be at a high fee if you do find one willing to carry it out.

The fee will likely be the same as if it was a Personal Pension. And there are plenty of Advisers who would do this for a client, on the basis that if they don't another one will and take away their ironclad payday (because the client has decided they want to do it, besides the risk warnings, right?!).

There has been a consultation on whether to ban DB pension transfers. The result was a 'no' to the ban and this has effectively given the greenlight on transfers, and therefore seemingly less worry for an adviser to refuse to do it.

We are in an environment now where Mr Osborne is promoting 'freedom and choice'. While the rules dont extend to DB, you have to assume the theory behind it is still relevant. You've built a retirement fund, now it's your choice what you want to do with it.

xylophone

http://www.fca.org.uk/static/documents/thematic-reviews/tr14-12.pdf

might be of interest.

The Arcadia sponsored IFA has advised you that he does not think that it is in your interests to transfer out.

Has he based this solely on the fact that a DB pension provides you with a guaranteed index linked pension or has he looked at your financial provision as a whole?

For example, if you had a current DB pension or very substantial assets etc there might be a case for transferring out.

With regard to the GMP, you say the pension became deferred in the eighties. Was this pre 88 or post 88?

Remember that the scheme has no obligation to index link any pre 88 GMP in payment and post 88 GMP in payment only up to 3%.

As you will draw your state pension post 6 4 2016 see https://forums.moneysavingexpert.com/discussion/4920460
There is an article in the Money Section of today's Telegraph that you might find of interest.

jem16

mania112 wrote: »

The fee will likely be the same as if it was a Personal Pension. And there are plenty of Advisers who would do this for a client, on the basis that if they don't another one will and take away their ironclad payday (because the client has decided they want to do it, besides the risk warnings, right?!).

So you feel that quoting £7k for a DB transfer would be the same fee with a DC transfer?

From another thread;

SJD48 wrote: »

In the process of doing something similar with my DB scheme.


Got loads of differing information and had IFAs quoting thousands of pounds to agree to a transfer due to their PI insurance.


As I'm aware of investments and had got my own transfer value analysis I was able to prove to my scheme administrator and the receiving SIPP that I understood the risks and they both agree that they would accept my transfer if I decided to proceed. This has effectively saved me £7k to an IFA.

mania112

jem16 wrote: »

So you feel that quoting £7k for a DB transfer would be the same fee with a DC transfer?

I would look at it the other way around.

If a DC transfer had a value of £100,000 and a £3,000 fee, the same fee would apply to the the same CETV of a DB scheme.

mania112

P.S - I would never ever charge £7k for a DB transfer.

PI costs is a lame excuse to justify charging more. The additional costs of including potential DB transfers is not significant.

SJD48

jem16 wrote: »

So you feel that quoting £7k for a DB transfer would be the same fee with a DC transfer?

From another thread;

Not sure how my quote ended up here. For transfers of my DCs I've moved them to my SIPP and paid nothing.