SIPP Providers – Transfer Guaranteed Final Salary Pension

mBanners

I have from an old job at ICI (1997-2000) a small pot of £15k worth just £900pa on retirement, which I want to get hold of and invest myself via a SIPP. In doing so, I accept that I would waive the right to any of the scheme's benefits.

Many companies I've spoken to - such as Fidelity - won't accept it, whilst others - including Hargreaves Lansdown - will, but only if I can provide a letter proving I've taken advice from an IFA. Of course, getting such advice will be costly and time-consuming.

Are there any SIPP providers who'll accept such a small pot from a Guaranteed Final Salary Pension Scheme, without my needing to involve an expensive IFA?

atush

Nope.............not that I know of.

Basically, transfers out of DB pensions are consider a missale by default so require advice.

drumtochty

Also the cost of the advice compared to the value of the pot and the amount of tax you will have to pay on the way out would probably make it uneconomic to loose that money.

dunstonh

Of course, getting such advice will be costly and time-consuming.

And in 9 out of 10 cases, you will be told it is bad advice to move it. So, how do you fancy your odds of being that 1 in 10.

Are there any SIPP providers who'll accept such a small pot from a Guaranteed Final Salary Pension Scheme, without my needing to involve an expensive IFA?

The regulator effectively treats defined benefit transfers as mis-sold unless proven otherwise. It is difficult for any DIY provider to prove it was the right thing to do unless advice has been sought and given.

xylophone

won't accept it, whilst others - including Hargreaves Lansdown - will, but only if I can provide a letter proving I've taken advice from an IFA.

Apparently MittySmit managed it with HL and without IFA advice......

https://forums.moneysavingexpert.com/discussion/5053691
post 15

kidmugsy

mBanners wrote: »

a small pot of £15k worth just £900pa on retirement

I'm often impressed by how rich our posters here are. People are forever saying things like "just £900pa".

atush

True. 900 quid is better than a slap in the face with a wet fish.

Is the 900 indexed?

PensionTech

1997-2000? It will be.

mBanners

Thanks for your the input.

It turns out that Standard Life will accept it and open a SIPP for me without requiring input from an IFA, but their charges seem very high and quite intimidating compared to someone like Fidelity.

Anyway, given how badly my existing investments have been doing since the start of the year, I'll probably forget about it – for now at least.

Cheers.

dunstonh

It turns out that Standard Life will accept it and open a SIPP for me without requiring input from an IFA, but their charges seem very high and quite intimidating compared to someone like Fidelity.

I seem to recall another poster saying something similar only to find out that when Std Life found out (in writing) that it was a defined benefit scheme, they stopped the process.

chiefie

I think I recall an article in the FT that said the government will not force advice for trivial pension transfers that are DB. Anyone else remember this ? Within the last two months .....