Pensions advice before transferring in

eb27

Hi All!

Firstly, my first post - please be gentle.

Second, I want to transfer in a pension that is of a rather low value (<2K) into my current scheme. The reason for this is essentially I will get a token amount of cash (Around 1/4) if I don't transfer it . [I didn't meet the qualifying criteria at the time].

However, my current provider, Fidelity has said they will not transfer the pension *in* unless I get a letter signed from an authorised and regulated (FCA) independent adviser. I've asked them not to be stupid and they are continuing with that bonkers concept.

Which brings me to my two questions...
1) Is there a source of free/very cheap independent advice (regulated by FCA)
2) Is there a method to force Fidelity to transfer my pension in?

Thank you

xylophone

I am assuming that you have left an employer with a DB scheme but you were not in it long enough to qualify for a deferred pension?

Even if you qualified for a deferred pension, if the value of the benefits were less than £30,000, you would not be required to take advice.

I don't see Fidelity's problem. What is their reason for requiring you to take advice?

eb27

Fidelity have said its policy, admitting it wasn't a legal thing but the only reason for it is policy.

dunstonh

1) Is there a source of free/very cheap independent advice (regulated by FCA)

If there are safeguarded benefits on the pension then its a higher risk transaction that requires an IFA with specific permissions. Most dont have those permissions. So, that would push the price up.

if there are no safeguarded benefits and it is a money purchase scheme then the rules were recently changed to allow non-pension transfer specialist advisers to carry out the transfer advice.

2) Is there a method to force Fidelity to transfer my pension in?

You can complain, then wait for the rejection and then go to the pension ombudsman. The courts have recently made it clear that providers cannot prevent people making foolish mistakes (edit: not aimed at you but providers have been trying to stop people making mistakes and some ombudsman decisions blamed providers for not doing enough - although recent court decisions have gone against that stance)

PensionTech

Have you considered opening a personal pension elsewhere to transfer the money into? It is a very small amount but you may find someone who will take it - I'm sure that's something people on here with more knowledge of the personal pension providers could help with.

And if it is too small to transfer to a PP, you could consider topping it up with a contribution of your own to get it above the minimum - benefiting from tax relief in the process. But that does of course depend on a) having the extra money and b) not minding it being locked up until you're 55.

xylophone

If there are safeguarded benefits on the pension then its a higher risk transaction that requires an IFA with specific permissions. Most dont have those permissions. So, that would push the price up.

if there are no safeguarded benefits and it is a money purchase scheme then the rules were recently changed to allow non-pension transfer specialist advisers to carry out the transfer advice.

This appears to be a case where the OP has no right to a deferred pension in a DB because he has left within two years of joining the scheme - the choice is therefore between taking a refund of of his own contributions less tax and transferring the pension.

Perhaps the OP could transfer to a stakeholder with another provider.

He might try here http://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/aviva/

or try L&G or Standard Life or Prudential etc?

He could ring round and explain the situation.