Pension help

Kernowmover

Hello all

I have just recently turned 55 and have a couple of pensions, I want to sell one of my smaller pensions. I went to a financial adviser and he wanted up to £2000 just to explain that why's and wherefores and to sign the supplementary guarantee declaration form. My cash in value is only £14600. As the fund value covered by the guarantee annuity rate is more that £30000.

To me that sounds a rip-off. is there people who do it either free or cheaper rate?

Thanks in advance

zagfles

Give Pensionwise a call, it's a govt provided scheme to give free guidance to people on their DC pension options:

http://www.pensionwise.gov.uk

sandsy

You've asked the adviser to help you undertake a highly risky transaction that's very hard for them to justify.

It's very difficult for an adviser to justify that you should give up a benefit worth more than £30k to get back £14.6k (£12.6k after his charge). The fee quoted reflects the riskiness of the proposed transaction to the adviser.

Sobryma

I can't understand why you would want to transfer a guaranteed annuity at half the value, unless the provider or scheme is in deep trouble. I had a CETV quote for a deferred final salary scheme that came in similar the transfer value was half what I thought it should be.

Leave well alone unless there is some overwhelming reason would be my thought.

dunstonh

I went to a financial adviser and he wanted up to £2000 just to explain that why's and wherefores and to sign the supplementary guarantee declaration form.

Its not "just to explain". The cost isnt in the explanation. Indeed, that is the cheapest bit. The cost is in the lifetime of liability that comes with that explanation.

To me that sounds a rip-off. is there people who do it either free or cheaper rate?

That is because you just see it as signing a form. The problem is that the regulator and ombudsman don't see it as that. When the PPI claims companies finish with PPI in the next few years, pensions will be next. And people like you will be the ones they target.

As it stands, you want an adviser to sign a form that justifies you taking £14,600 before tax when the benefits are worth more than £30,000. So, in effect, taking less than half what it is worth.

bigadaj

Kernowmover wrote: »

Hello all

I have just recently turned 55 and have a couple of pensions, I want to sell one of my smaller pensions. I went to a financial adviser and he wanted up to £2000 just to explain that why's and wherefores and to sign the supplementary guarantee declaration form. My cash in value is only £14600. As the fund value covered by the guarantee annuity rate is more that £30000.

To me that sounds a rip-off. is there people who do it either free or cheaper rate?

Thanks in advance

What reason do you want to sell it?

The relative valuations suggest that if left alone this lens ion would give you more than double the income of taking it out, if it is to invest elsewhere then you'll be losing money.

In many cases you would be better using 0% credit cards or a loan for soemthing special and then paying it off with the pension received.

kidmugsy

Kernowmover wrote: »

I have just recently turned 55 and have a couple of pensions, I want to sell one of my smaller pensions. I went to a financial adviser and he wanted up to £2000 just to explain that why's and wherefores and to sign the supplementary guarantee declaration form. My cash in value is only £14600. As the fund value covered by the guarantee annuity rate is more that £30000.

Tell us about the other pension(s).