final salary pension scheme

OldBeanz

I've been on this board long enough to know that this is the case. I am just saying that it is wrong. If we are giving people freedom, presenting them with the facts and written acknowledgement from the pension holder that they are choosing to ignore them then let the pensioners eat cake while Rome burns. The downside to flexibility is some will fall by the wayside.

greenglide

The current system allows people to do just that. If they consult an IFA they can then go to the pension provider and have the whole cookie jar irrespective of what the IFA has said.

Since these savings have included tax relief specifically for saving for your old age why should people be allowed to gorge themselves on the cookies and then claim means tested benefits the following day?

The number of people who do this must be vanishingly small though. People who end up on means tested benefits in retirement cannot have much in the was of pension savings anyway and if you havent got much you cant save much, even if you want to.

Brogden

If the original poster is still around........

I have a DB pension too and after much headbanging have established that I can do what I want with it, at a price as I will pay a signifcant fee to my IFA for the analysis and advice.

I became a little upset recently at the way many people including IFA's threw their hands up in the air with shock at the sugestion that somebody could want to transfer away from a DB scheme or want their help (advice) on the matter and I sympathise enormously with the OP's frustration. I really think regulation and the industry is in a period of flux. Nothing is easy!

I have a critical yield quoted to me and whilst I would prefer it were a little lower, I know my feelings, I know my plans. I do occasionally ponder on my ultimate demise and most importantly I know my family and whilst the regulator dictates to the adviser community that critical yield is everything.....well......how the hell can it be everything for everybody? Does no other factor come into it? The situation is absolute toytown.

There are some superbly professional, qualified, suitably insured IFA's out there who listen, can relate, can address people's concerns and remain in business.

So I say to the OP here....do not give up and do not lose hope.

All the best with it!

RickyB2000

greenglide wrote: »

The current system allows people to do just that. If they consult an IFA they can then go to the pension provider and have the whole cookie jar irrespective of what the IFA has said.

Since these savings have included tax relief specifically for saving for your old age why should people be allowed to gorge themselves on the cookies and then claim means tested benefits the following day?

The number of people who do this must be vanishingly small though. People who end up on means tested benefits in retirement cannot have much in the was of pension savings anyway and if you havent got much you cant save much, even if you want to.

But on this point, DC holders have had tax relief. Nothing stopping them gorging on cookies. Why should DB holders be treated differently? Going foward, a lot of people will have DC schemes so I don't see why DB holders should be nannied but DC left to do what they like.

It is Purley about value for money. The government knows DB schemes will on the whole try to 'con' people out of money if they can (which will lead to mis-selling). Again, being emotive but it will be seen as a con by most people.

Brogden

RickyB2000 wrote: »

But on this point, DC holders have had tax relief. Nothing stopping them gorging on cookies. Why should DB holders be treated differently? Going foward, a lot of people will have DC schemes so I don't see why DB holders should be nannied but DC left to do what they like.

It is Purley about value for money. The government knows DB schemes will on the whole try to 'con' people out of money if they can (which will lead to mis-selling). Again, being emotive but it will be seen as a con by most people.

A transfer from a DB scheme involves the giving up of guarantees - that is the difference. 'Generally' there are not guarantees in the DC world.

My DC has transferred out quickly but the DB is very slow and costly but in the scheme of things all OK...I understand this

It should not be this way and shortly it won't be this way because all of the DB people will have gone.....:(

Brogden

I should also have said........everybody has had tax relief

Whether they will going forward......well....?

RickyB2000

Brogden wrote: »

A transfer from a DB scheme involves the giving up of guarantees - that is the difference. 'Generally' there are not guarantees in the DC world.

My DC has transferred out quickly but the DB is very slow and costly but in the scheme of things all OK...I understand this

It should not be this way and shortly it won't be this way because all of the DB people will have gone.....:(

But this is my point. What I am challenging is the idea that the government has put the IFA check in place because it is worried about people blowing all their cash. I don't buy it, they have allowed DC holders to blow all their cash so why not DB holders? If they were that worried why not just ban transfers except for certain circumstances.

No, the IFA check is there is ensure you understand if you are getting value and prevent a whole heap of mess down the line with regards to mis selling (and shift the liability to someone else to protect company pension schemes). So the question they are answering is whether giving up the DB guarantee for the lump sum good value. What you do with the lump sum is your buisness.

mccarthy1

IFA,s are refusing to write any letter confirming I have been to them for advice.

I also have a local government pension and will get a state pension.

mccarthy1

Thanks for your comments.

Some of the replies to my request for advice do seem to be disrespectful.

The IFA,s I have spoken to all understand my financial position and also understand why I want to transfer my db pension.

I only have one chance to make ,what I think, is the right decision regarding this db pension.
Can I come back in 10yrs and say " I knew I was right and you were wrong"....NO, that's why I want to get it right for me and my family now.

Sure I can take a very good lump some now and receive £4000 A YEAR pension less tax but if ,say in 5 years, I need to take another lump sum then that option will not be available to me.
I know I can put my monthly pension payment into whatever savings,stocks and shares I may choose but this isn't what I want to do.
If there is an IFA out there who would take this on then pls come forward....

xylophone

IFA,s are refusing to write any letter confirming I have been to them for advice.

Have you actually had any advice as such or is it simply that upon enquiry, four suitably qualified IFAs told you that they do not want to take on the proposed transfer?

You say that in addition to the pension you wish to transfer, you are also entitled to an LGPS DB pension (are you currently contributing) and to a state pension?

Do you have a state pension statement?

When you approached the IFAs, did you tell them about the LGPS pension?