Can its say no to pension transfer from final salary to sipp

honestash62

Just given my cetv value £365000 or £9300 pension final salary benefits ( pension is low due to penalties before 62)
Surely a quick look is that I get almost 40 hrs cash up front
Yes this pension will go up as yes go buy

If I want to move to h&l Sipp they say ifa "says no you cannot transfer monies"
So I could pay 3% fee and they say no !

I have other pensions with legal general and cash in bank
Wife would give here pension if I die up ( 5200 only)

Would ifa just say no or consider my other cash deposits
Not really want hard sell from ifa to go where he wants just want the cash

In 18 months at 56 will retire , got that long to think about this
And value surely go up as pension rises


Any help appreciated

honestash62

Sorry should read
Can an IFA say no to your transfer , and take payment
This would not allow transfer to h&l sipp

soulsaver

Put together a synopsis of the CETV offer with the figures and reasons why you believe it to make sense (health issues help) in your enquiry.

And explain to your prospective IFA in the preliminaries that no positive recommendation = no transfer= no fees, firmly but politely is good.
It wasn't a surprise to mine when I did it.

See here: https://forums.moneysavingexpert.com/discussion/5554142

You're likely to get 'HL is expensive for a pot that size', too.

soulsaver

PS CET Value doesn't necessarily go up as pension rises, but fluctuates with gilt yields and other actuarial calculations...

honestash62

If pension rises to £11000 from£9300 surely cetv had to rise even slightly

Silvertabby

If pension rises to £11000 from£9300 surely cetv had to rise even slightly

No - the cetv isn't based on the DB pension value. It may even be lower than it is now.

honestash62

What is it based on please ?
My pension with increase yearly till I die - many years !!
My wife's guaranteed pension if I die first ?


Anything else

dunstonh

Can an IFA say no to your transfer , and take payment

Yes. An IFA provides advice. You are paying for advice. If the IFA recommends you keep the pension where it is then you have received what you are paying for.

And explain to your prospective IFA in the preliminaries that no positive recommendation = no transfer= no fees, firmly but politely is good.
It wasn't a surprise to mine when I did it.

Stupid IFA agreeing to that. Technically it is not in the spirit of RDR and it created unnecessary bias. If it worked for you then great but it certainly isnt how it should morally be. If there was a stepped charge where the stages of the process were priced individually and you only paid for each step, then that would be fair (and is quite a common method). However, that can lead to VAT being added on some of those stages where an all in price would not.

If pension rises to £11000 from£9300 surely cetv had to rise even slightly

No. Gilt yields and assumptions have been the reasons for the big rises in transfer values. In the cycle which sees these return to normal (if and when), you will see transfer values fall.

honestash62

Can I move the cetv value £365k to my Sipp now
and take the pension in 12 months time ( actual go to drawdown and take a monthly income )


Waiting another year the value could go up or down , I do not know that answer unfortunately ,but if I have moved money across it is there waiting to be used ( one could even work on for yrs , but not want to do that )


Possibly going to spend the next 12 months thinking this through , but at the moment moving it to my Sipp seems my best option

With other pension plans with l&g and cash in the bank
I am not solely relying on my final salary pension from a previous employer ( left 11 yrs ago- lose 5% a yr every yr I take it before 62)



Lot of cash in the cetv value adding it to the rest , looks like a tidy sum for lasting many yrs , and state pension coming 11 yrs later as well

Long term you could downsize if you are skint , but that's not something we fancy ( would be an idiot to spend all your money and be in that situation !! Plus the more than likely inheritance from ones parents will happen Later in years hopefully )

dunstonh

Waiting another year the value could go up or down

Although its unlikely it will go down as quickly as the stockmarket could go down once you are in drawdown.

Can I move the cetv value £365k to my Sipp now
and take the pension in 12 months time ( actual go to drawdown and take a monthly income )

yes

soulsaver

dunstonh wrote: »

Stupid IFA agreeing to that.

He WAS stupid - he was one of the stupid ones that weren't seeking £10k+ (majority of responses) for so called advice for a 'no brainer' & what appears a few minutes work on a spreadsheet to confirm what I already knew.
My IFA probably recognised a 'no brainer' & so probably didn't need to argue.