Transfer DB to DC and cash in on £15k pot

Dendo

Hello All,
I am now retired with one reasonable Annuity and several small ones plus the state pension and some savings.


Anyway I have a £15k ish pot in a defined benefit scheme (from 1974-1980) with L&G who have been offered several annuity options none of which appeals as I want the tax free cash and to pay the tax on the rest. The one option they did offer that did appeal I don't qualify for because of Triviality rules.


Having talked to L&G several times to get this pot in a form that suits me i.e. a DB scheme so I can cash in I'm having no luck....


Other facts
I do not want to get involved with an IFA if at all possible indeed I don't think I have to because of the pot size.
L&G have sent me a transfer quote and do not charge for this transfer from their end.
I have approached L&G----SIPP division to receive this transfer...they say their product requires input from an IFA.
I have talked to Hargreaves Lansdown--similar result to above--- has to come from IFA
I have approached two local IFA's -don't want to know as probably too busy with bigger fish


Any thoughts advice would be much appreciated.


Dendo (small fish)

dunstonh

I have approached L&G----SIPP division to receive this transfer...they say their product requires input from an IFA.

L&G retail via intermediaries. So, that is how you have to buy their products if you wish to use them.

I have talked to Hargreaves Lansdown--similar result to above--- has to come from IFA

They are not currently accepting transfers on a non-advised basis due to demand.

I have approached two local IFA's -don't want to know as probably too busy with bigger fish

They dont want to know as its a defined benefit transfer and only around 1 in 5 advisers have the required authorisations to do it and statistically (historically) it is only best advice to transfer in around 1 in 10 cases. Most defined benefit transfer complaints result in it being upheld. It is a high risk transaction and priced as such. On a 15k pot the fee relative to value would not be cost effective. So, that is why you are likely to be been declined.

If you dont want an adviser you need to use a product provider that accepts defined benefit transfers without an adviser. That is not likely to include any provider that only retails via advisers. So, you will need to look at the providers that focus more on the direct to client market.

xylophone

HL must be aware that according to FCA rules, a transfer of safeguarded benefits


"is subject to the requirement that the member
must obtain appropriate independent advice. This requirement
applies to transfers made under the legislation and the scheme
rules. The exception to this is that, where the member’s cash
equivalent transfer value (before any reduction) of his or her
safeguarded benefits in the scheme is £30,000 or less, the member
is not required to obtain advice for the purposes of making a
transfer (the ‘£30,000 exemption’)."

Would Virgin or Fidelity or Cavendish accept it?

xylophone

They are not currently accepting transfers on a non-advised basis due to demand.

According to the article below, it was advised cases that were not being accepted?

Hargreaves Lansdown has temporarily halted giving advice on pension transfers after being swamped by demand following the 'freedom' reforms.

http://citywire.co.uk/money/hargreaves-suspends-advice-on-final-salary-pension-transfers/a829427

dunstonh

If its that way around then maybe the OP spoke to the advice arm of HL and was told no rather than speaking to the non-advice arm.

xylophone

See https://forums.moneysavingexpert.com/discussion/5217814

I have to say there is a lot of admin and chasing around to ensure these new freedoms happen - for example HL intially wrote to us refusing to accept the transfer in as we had not had independent financial advice. I phoned up to say that the pot was less than £30k (considerably less) and they said oh, ok then, it's just that we have to send out that letter first. Many people might have taken that letter at face value..... it all seems far more complex than necessary

Dendo

Thank you to everybody that has replied to this thread.
I feel that I might just let the pot fester for a while and hope that the waters clear in the future.
Thank you all again.
Dendo

xylophone

Thank you to everybody that has replied to this thread.

I feel that I might just let the pot fester for a while and hope that the waters clear in the future.

Sounds like a sewage system....:D

But do note the information re HL in post above.

You might also try Virgin?

atush

Post no6 seems to indicate yo just need to call again and point out the size?