Low cost IFA for DB to SIPP pension transfer?

Erc1046

Hi CSMR, I have been quoted from £5000 to £9500 by IFAs to do a transfer from DB to SIPP which is a no-brainer. They have all agreed it would be the best idea. If you know of an IFA who would do the job for £1000 could you please let me have the details?
Thanks.

kidmugsy

Silvertabby wrote: »

I have bad memories of a case a few years ago when I had to tell a just widowed lady that the LGPS wouldn't be paying her the widow's pension she had expected and was banking on. Her husband had transferred his LGPS benefits into a private pension scheme so he could take the lump sum and an annuity at 50 (LGPS minimum age was 60). It seems that when he received his annuity offer, he just looked at the highest pension - ie, the one without widow's benefits. According to his poor wife, he told her that as his private pension wouldn't go to her, that must mean that her widow's pension hadn't been transferred and so she would have to claim it from the LGPS when he died.

And we'll never know whether the man was just a bloody fool or a malevolent bloody fool.

kidmugsy

AnotherJoe wrote: »

Ricky, They were not able to read. It was still (IMO) a terrible precedent/QUOTE]

My first instinct is to wonder at any IFA taking on a client who couldn't read. Or would refusal lead to a charge of "discrimination"?

Silvertabby

“ I have bad memories of a case a few years ago when I had to tell a just widowed lady that the LGPS wouldn't be paying her the widow's pension she had expected and was banking on. Her husband had transferred his LGPS benefits into a private pension scheme so he could take the lump sum and an annuity at 50 (LGPS minimum age was 60). It seems that when he received his annuity offer, he just looked at the highest pension - ie, the one without widow's benefits. According to his poor wife, he told her that as his private pension wouldn't go to her, that must mean that her widow's pension hadn't been transferred and so she would have to claim it from the LGPS when he died.
Originally posted by Silvertabby ”
And we'll never know whether the man was just a bloody fool or a malevolent bloody fool.

Kidmugsy - probably just a fool. This happened many years ago when private pension annuity offers would say something like " Your £XX will buy an annuity of £X per year. There are other options available which include cost of living increases and/or payment of a spouse's pension on your death, but these options will pay you less than £X per year. Please contact us should you require further details". So, know-nothing-about-pensions chap looks at £X per year, thinks 'why should I ask them for details for a lesser amount' ... and signs the form. As I said before, they just look at the £ signs and not all the words.

dunstonh

kidmugsy wrote: »

AnotherJoe wrote: »

Ricky, They were not able to read. It was still (IMO) a terrible precedent/QUOTE]

My first instinct is to wonder at any IFA taking on a client who couldn't read. Or would refusal lead to a charge of "discrimination"?

I think you would be on difficult grounds if you refused. However, in this case, it would make sense to have had a number of safeguards. A voice recording of a meeting where you verbally went through the report and explained things would probably be the simplest.

Hi CSMR, I have been quoted from £5000 to £9500 by IFAs to do a transfer from DB to SIPP which is a no-brainer. They have all agreed it would be the best idea. If you know of an IFA who would do the job for £1000 could you please let me have the details?

Any IFA quoting over £5000 really doesnt want to do it and it using the price as a passive blocker rather than so no. As IFAs cannot restrict areas of their permissions (otherwise they cease to be allowed to call themselves IFAs) they will often use price to act as a blocker.

Erc1046

Not true. They're gagging for it and keep calling me to be selected and get on with the job. It's a pot of £400k and they are typically asking for 1.5% provided I have an ongoing relationship at 0.5%/year Alternatively, just the transfer for 2%. I mean, whose pension is it? It seems parasitic, and being compelled to go through this process is ridiculous. The pension offer is £17,000/year and I'll pay 40% tax on all of it because I'll still have income.
So, if anyone knows a low-cost IFA please let me know.

Sinbad

Erc1046 wrote: »

So, if anyone knows a low-cost IFA please let me know.

I'd be interested too. Have had a quote for 1500 for a 100k pot but when I responded with "can we have a chat about this and see how we go forward", I've heard nothing (that's voicemail and email)

Erc1046

Today, I agreed a £5000 fee, reduced from £6000. There is limited time once the transfer value has been given and, as I'm within a year of retirement, the value is not guaranteed. Hopefully, once invested, the £5000 will be quickly covered. Well, fairly quickly! The earlier poster who offered the low cost contact seems to have gone to ground. My IFA was originally working on 1.5%, so £1500 seems about right. Good luck, Sinbad!

atush

Erc1046 wrote: »

Not true. They're gagging for it and keep calling me to be selected and get on with the job. It's a pot of £400k and they are typically asking for 1.5% provided I have an ongoing relationship at 0.5%/year Alternatively, just the transfer for 2%. I mean, whose pension is it? It seems parasitic, and being compelled to go through this process is ridiculous. The pension offer is £17,000/year and I'll pay 40% tax on all of it because I'll still have income.
So, if anyone knows a low-cost IFA please let me know.

If they are gagging for it, they probably want to sell you dodgy non regulated investments.

Erc1046

No, atush, they want a chunk of my lump sum. Why wouldn't they? Wouldn't you want £5000 for a few hours work (accepting there are some charges to pay out of it)? I will choose the SIPP provider and the investments. No non-regulated dodgy deals.