Cheap final salary to drawdown transfer?

Domlowe

I have a 150k pot made up of several company pensions including two FS ones at £50k each. My personal circumstances (no spouse, no dependents, heart condition) dictate that I need to move this money into a drawdown scheme along with other investments of the same value so that it becomes inheritable by my 3 children, otherwise the majority of it will be swallowed up when I go, which may well be before state retirement age.
The issue I'm having is that fees for this run into the thousands when I know what I want to do and why, I don't need (but appreciate that I have to have) advice - can anyone advise me of the best way to do this?

xylophone

I need to move this money into a drawdown scheme along with other investments of the same value

I do not quite understand this - do you mean that you intend to make additional contributions to a pension scheme?

Having a very serious heart condition which is likely to lead to premature death may incline an IFA to recommend a transfer out of a DB pension but there are no guarantees and I don't see any way of avoiding a substantial fee.
You would need an IFA qualified as a pensions transfer specialist.

https://www.fca.org.uk/news/policy-statements/ps1512-proposed-changes-to-our-pension-transfer-rules-feedback-on-cp157-and-final-rules

There is a filter here.

https://www.unbiased.co.uk/

http://www.ft.com/cms/s/0/bc140a14-ee46-11e4-88e3-00144feab7de.html#axzz3j9y7Wh00

Domlowe

Sorry, what it means is that I already have investments in a drawdown pension, I want to get them all together in one place and should I depart early it will all go to my children. I'll work and continue paying into this for as long as I can.

atush

As far as you DB pensions, you will need an IFA to help with the transfer.

And you will only be able to transfer if your schemes are Funded ie not unfunded PS ones like say the NHS, TPa etc.

Al.

Dom,

How old are your children, is there provision for a dependent's pension - are you likely to die relatively soon? Sorry for being forthright mate.

Domlowe

That's ok, appreciate you taking the time - Children are 23 (twins) and 19, no provision for dependant's pension.
I had heart attack at 49, 53 on Saturday, death not imminent or predicted but I want all of this pot to go to them when it does happen.
Both schemes are funded, I worked in pensions industry for the last 15 years so I know I have to pay for 'advice' even though I don't want it, I'm clear on my options and know what I want to do but some of the quotes I've had are ridiculously large for the actual work involved, I presume down to their liability in case I turn around in 10 years having spent the lot and say I was badly advised!

atush

Yes, it is the liability they face as all DB transfers are considered suspect.

Have you been upfront with each as to your bad health and no spouse?

Al.

Domlowe wrote: »

That's ok, appreciate you taking the time - Children are 23 (twins) and 19, no provision for dependant's pension.
I had heart attack at 49, 53 on Saturday, death not imminent or predicted but I want all of this pot to go to them when it does happen.
Both schemes are funded, I worked in pensions industry for the last 15 years so I know I have to pay for 'advice' even though I don't want it, I'm clear on my options and know what I want to do but some of the quotes I've had are ridiculously large for the actual work involved, I presume down to their liability in case I turn around in 10 years having spent the lot and say I was badly advised!

Dom,

I sympathise.

I had to compile a report for someone quite well known in pension circles, who wanted to do something similar. He had designed the product yet still had to take advice. He knew more about the minutiae of the scheme than I did.

You're right of course, the cost of the liability drag is immense. I'd be upfront with advisers, hold a beauty parade and try and marry up their expectations with your's. In other words, haggle! :T

Glad you're ok.

Domlowe

I've been completely up front with them all, my main drive behind this is so that £100,000 that I've spent decades paying into doesn't simply disappear into some fat pension company's pocket, I have no spouse so want it all to go to my kids.
Hargreaves Lansdown won't take on any more cases as they're swamped apparently and even if I fork out £1000-£2000 with an IFA just for the advice there will then be up to another £2000 for the transfers.
I'll try my best to haggle but they make the rules and it's hard!

Malthusian

I hope by "they make the rules" you don't mean IFAs. We wish!

dunstonh

I presume down to their liability in case I turn around in 10 years having spent the lot and say I was badly advised!

Liability is the big issue. The FCA treat them as mis-sold unless proven otherwise and the FOS uphold most defined benefit transfer complaints. It also takes a pension transfer specialist (higher qualified and requires a bigger insurance premium for the firm).