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Advice please transferring public pension to private
Comments
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The new pension providers will not charge you for transferring the pension. Their concern will be that you have not understood the benefits of a Gold Plated DB pension. They will insist that you consult an IFA who needs to have expensive insurance to ensure you do not come back to sue them even if they advise you not to move.
You therefore need to approach a number of IFAs and have an initial free appointment and explain what you want to do. You can then haggle over fees if you find someone willing to do the work.
You also need to prepare a case to show that you will have sufficient funds in retirement with your own pension and that the transferring pension will help maintain your lifestyle/retire early.0 -
Thank for this. I was categorically told, and have it in writing, that there will be a charge by the company who take the pension on. I am going to go to an IFA, obviously this is not clearcut, will wait for further advice from PAS, then arrange a consultation, which I anticipate PAS telling me to do. Thanks again.0
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The issue, according to them is the charges that the new pension provider will enforce to take it.
Most providers have no initial charges nowadays. So, only if you are incrementing a legacy plan is that likely.I was categorically told, and have it in writing, that there will be a charge by the company who take the pension on.
Who told you that? Was that specific to an existing pension? Or does it use the wording "may" as in there may be a charge?will wait for further advice from PAS,
PAS will supply generic information. Not specific. No provider names. No pension types. No charges information. Just generic wishy washy.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Who told you that? Was that specific to an existing pension? Or does it use the wording "may" as in there may be a charge?
The pension expert from the pension provider of the pension I want to transfer. Said in previous cases the new provider takes a percentage of the pot, which can vary enormously.
Thanks0 -
The pension expert from the pension provider of the pension I want to transfer.
They are not correct and are many years out of date. Not much of an expert!
if you go back to the days of the commission based salesforces (most of whom had gone by 2003) then that was the case. However, the introduction of stakeholder pensions in 2001 removed up front charges. The move to fee basis allows the fee to be taken from the pension but there are no product provider up front charges.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thank you. It is blindingly clear that I do need an Independent Pensions Adviser to help me.0
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CarolineM61 wrote: »The ex employers of my ex husband have consented to the funds being transferred, so as far as I know that shouldn't be an issue.
To be clear, allowing a transfer out (or not) is not an employer discretion in the LGPS - so long as you're more than 12 months away from your benefits' normal pension age, and fulfil the (not LGPS specific) requirements about getting independent financial advice, you can transfer out whenever you want. It's drawing the pension from 55 but before 60 (where the benefits in question are all final salary based) that's an employer discretion, since the pension fund may charge them a strain cost for agreeing.I am sure I will need an IFA, so am wondering about CAB as they say they have a Pensions Specialist
Any guidance from a CAB will not be sufficient to fulfil the legal requirements for independent professional advice - you need an IFA, as you now understand.0 -
Some more reading for you:
https://www.moneyadviceservice.org.uk/en/articles/transferring-out-of-a-defined-benefit-pension-scheme
Note the LGPS is the most secure pension scheme which allows you to transfer your DB pension to DC.0 -
Some more reading for you:
https://www.moneyadviceservice.org.uk/en/articles/transferring-out-of-a-defined-benefit-pension-scheme
Note the LGPS is the most secure pension scheme which allows you to transfer your DB pension to DC.
Yes... she can skip the 'Risks of staying in your defined benefit scheme' section as it doesn't apply.0
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