Final Salary Pension Cash Transfer and IFA charges

HappyHarry

soulsaver wrote: »

Yup - you who grew a million pound pot without the help of an IFA,

With all due respect, the OP didn't do that. The OP joined a DB pension scheme, and now has a CETV of £850k due to fortunate circumstances outside of their control.

You seem to be confusing investment skill with luck. This is something that happens to a lot of people who end up over estimating their skills, and losing a lot of money. This is especially so in gambling, forex trading and day trading, but is frequently seen in investing too.

Linton

soulsaver wrote: »

Yup - you who grew a million pound pot without the help of an IFA, but you need one who wishes to part you from a 5 figure+ sum for a few hours work for you to transfer it .... and another 5 figure sum per annum for ongoing 'advice' ...

There are sensible IFAs out there, who aren't going to scam you or rip you off... (or 'stupid' as one of the IFAs on here describes them as..) .. you need to find them.

The OP didnt grow a million pound pot without the help of an IFA. He just happened to be in the minority of private sector jobs that provided a DB pension and be close to retirement age just at the time that gilt returns collapsed leading to unprecedently high transfer values. No financial management skill required whatsoever.

Running £1M of investments is a totally different matter. If you have no experience in investing and tax and just rely on mates in the pub or unknown people on the net you could at worst lose the lot. Even if the results arent that bad you could well flounder buying random things that seemed a good idea at the time and then suffer massive stress when they drop 50% in the next major crash.

PeacefulWaters

For comparison purposes I'm paying a £7k fixed fee for a DB to personal pension transfer. Pot is c£680k.

I'm comfortable with that.

happyandcontented

What pointers make such a transfer more desirable than leaving it where it is? Should everyone with DB pot ask themselves and an IFA certain questions?

dunstonh

There are sensible IFAs out there, who aren't going to scam you or rip you off... (or 'stupid' as one of the IFAs on here describes them as..) .. you need to find them.

The IFA you saw was stupid. Either planning to dump liabilities onto the FSCS in the future or is doing far too little work and is going to get caught out later and suffer a S166 review or similar. Being too cheap should be a concern.

I don't see even with all the reasons above how someone can justify £10000 to go through the transfer process and set up the SIPP.

I wouldnt go that high but I respect the reasons why Harry would.

20 years ago we needed our garden done. We got some prices and they varied massively. One was under £1000 and the the highest was way over £10,000. The range of prices you get is no different for any job.

craig1912

Finally managed to speak to someone who won't overcharge me for a one off transaction and seems more intrested in developing value over the longer term. Seeing all three IFAs next week.

soulsaver

Good man, good luck - keep your hand on your wallet at all times...:)

soulsaver

Bit more to consider...
.. https://www.moneymarketing.co.uk/bank-of-england-chief-economist-ifas-have-no-clue-on-pensions/

bigfreddiel

HappyHarry wrote: »

I am a pension transfer specialist.

If someone came to me, looking for advice on a DB transfer for £850k, with another £145k in a SIPP, then I would be charging a fee in excess of £10,000.

This level of fee is not a blocker, it is simply a reflection of the specialist work required, and the risk taken in advising on such a transfer.

If you want a specialist to deal with this level of complex transaction, then you will need to pay specialist prices. As with all services, you pay for what you get. The suggestion from an earlier poster that you might be able to pay £750 to move this pension is frankly ludicrous. If you found an adviser to do it for that price, then you can be assured that either
i) You are being scammed or
ii) The adviser is not intending on being in business very long.

What questions do you need to ask?
i) Are you a pension transfer specialist with the appropriate qualification (and then check it)
ii) Are you FCA registered (and then check it)
iii) How often do you transact DB analysis on pensions of this size
iv) What are the risks involved for me, as a client.

You are talking about funds in excess of £1,000,000. You should look after these funds in the same way that you would £1,000,000 of any other asset you were dealing with. If this means a fee of £10,000+ to make sure that your £1,000,000 gets looked after properly, then you should not be afraid to pay it.

From your explanation you seem to be saying you would give someone a far more diligent service than someone with say only £50k?

Cheers fj

bigfreddiel

soulsaver wrote: »

Bit more to consider...
.. https://www.moneymarketing.co.uk/bank-of-england-chief-economist-ifas-have-no-clue-on-pensions/

Good point!