Difficult decision

Janlove

Hi, I wasn't aware of the terminology used but having read the link that you posted it seems that this is what is being advised, transferring from DB to DC. If it helps to confirm the pension type it was with Astra Zeneca, however was deferred as I left the company in the early 90's. I have another smaller pension which I'm already drawing after taking redundancy and early retirement from a local government scheme 4 years ago.

My adviser is a chartered Independent Financial Adviser who we have been working with for several years in relation to other assets.

Janlove

Sorry that I'm not responding to everybody I'm not sure how to do that but I really appreciate your input.
Thank you

Janlove

Basically yes, I am able to take unreduced benefits from the Astra Zeneca scheme at 60 so they have contacted me with the figures of taking benefits as a full salary or commuting 25% tax free with a reduced annual pension.
However my FA is recommending I transfer out of the scheme and invest in a Pension Portfolio

PensionTech

This is definitely a final salary scheme. It is a bad idea to transfer out of that kind of scheme in >90% of cases. You haven't said anything suggesting that you are in any of the exceptional circumstances that would put you in the <10% of people for whom this might be a good idea and your risk profile suggests that you may not be suited to the level of risk that this kind of transfer involves. I would be deeply suspicious of your financial advisor, although you say he is a trusted professional with whom you have worked before. Can you tell us the name of the advisor and/or his company so that we can check whether he is regulated by the Financial Conduct Authority - and whether he has permission to carry out this kind of work in particular? How did you originally come into contact with him? Are you paying for his services?

Also, can you explain any more about what you understand of this "pension portfolio with income release" he wants you to invest in - e.g. what kind of assets it will hold, how you will receive benefits, if you know what the name of the policy is, whether it is a SIPP or a SSAS or something else, who the provider/administrator is... anything like that.

xylophone

Astra Zeneca, however was deferred as I left the company in the early 90's.

Then while working for the company you would have been a member of their Defined Benefits Scheme and became a deferred member on leaving.

You have now reached Scheme Normal Pension Age and so can draw your scheme benefits without reduction.

Is your IFA a pension transfer specialist?

PensionTech

I would also point out that as you have reached Normal Pension Age, you do not have a statutory right to transfer your pension out. Your scheme may make a discretionary allowance for you to transfer out, but many that I have worked on would not.

xylophone

Is your IFA a pension transfer specialist?

See link in my post above - have you had a look at it?

Conducting a DB transfer
The FCA has stipulated that any transfer away from a DB scheme requires advice from an independent adviser who is D60 qualified.

xylophone

Your scheme may make a discretionary allowance for you to transfer out, but many that I have worked on would not.

I'd be surprised if AZ put any difficulties in the way of a transfer out, particularly as they seem to have provided a CETV (even without a request...)?



http://www.pensions-insight.co.uk/astrazeneca-makes-patent-progress/1472274.article

PensionTech

I'd be surprised if AZ put any difficulties in the way of a transfer out, particularly as they seem to have provided a CETV (even without a request...)?

Good point. One would hope that a scheme who's going to refuse to pay out a CETV would also refuse to quote it. It's possible of course that agreeing to produce the quote was an admin error... but more likely that the scheme actually does pay out late transfers.

What makes you think it might have been provided without request? If it's an ETV exercise or something, then the advisor's stance might make more sense...

xylophone

What makes you think it might have been provided without request? If it's an ETV exercise or something, then the advisor's stance might make more sense...

I asked the question in my post above

The statement includes a CETV or you requested a CETV?

because it was not entirely clear from the first post ( or subsequent posts)

what exactly had occurred.

As you will know, it is quite often the case that a deferred pension has to be claimed - the administrators will not necessarily contact the pensioner. Some do not even provide an annual statement, regarding themselves as having done their duty by telling the leaver to contact them at NRA....

In this case, did the OP mention to her FA that she had a deferred pension so that he reminded her to con tact the administrator and at the same time request a CETV?

Or in this scheme is it custom and practice to contact the pensioner, remind him that NRA has dawned, and give options including that of a transfer out?

We don't know and there are no details that I can find on the web..