Final Salary Pension Cash Transfer and IFA charges

dunstonh

soulsaver wrote: »

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

The risk of saying something like that is quite high as it can come back to bite you on the backside. In his case it did.

In May he said he couldnt understand pensions and the quipped that others do not. He mentioned economists and IFAs but in reality, he probably hasnt spoken to any IFAs. He would be speaking with directors of banks and insurers but not IFAs. It is fair to say that it is nearly impossible to remember everything about pensions as there are just so many things to know and just when you think you know a lot, along comes a hybrid scheme you have not seen before that has its own set of rules.

Just 2 months later he said property was better than pensions and that he did not consider himself wealthy. This is despite having a basic salary of £182,000 a year and a defined benefit scheme pension of £84k a year. He owns a home in Surrey and another on the Kent coast. He also privately educated his three children.

And just in the last day, he has admitted that he was wrong in forecasting economics leading upto and including the credit crunch and again with the Brexit referendum.

HappyHarry

bigfreddiel wrote: »

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

Sigh.

Everyone client would of course get the same diligence. It is a requirement under the TCF rules.

Aletank

Do these IFA charges come from the Transfer Pension Pot or do you have to pay these as a separate payment from your own pocket so to speak ?

HappyHarry

Aletank wrote: »

Do these IFA charges come from the Transfer Pension Pot or do you have to pay these as a separate payment from your own pocket so to speak ?

If transferred, they can come from the pension.

dunstonh

KATESLSIFA448340 wrote: »

Why put a pension into SIPP when it only really benefits someone who has a commercial property?

You are a little out of date on SIPPs.

bigadaj

KATESLSIFA448340 wrote: »

Why put a pension into SIPP when it only really benefits someone who has a commercial property?

Think I'd stick with the HR and admin role based on that answer Kate, not so much the compliance.

3098vauxhall

Were any of the 3 you saw any good?
Are you happy to share the name of hte one you ended up using?
I just want someone to do the transfer. I do not want any investment advice going forward.

freddymoney

An interesting debate and one that does interest me as I also want to transfer a DB scheme. The current value is circa £350K and I have been quoted up to 9K for the advice and transfer. I have had other quotes in the region of 3K to 4K. As far as I can see I need two specific areas of advice
1, Is the transfer out of a DB scheme right for me?
2, Where is the best place to deposit my fund
My situation is not unusual and I am sure that mots FCA's have managed many very similar transactions and in my view, experience acquires knowledge and builds expertise to a point where it becomes repeatable. For a prescribed set of criteria and similar circumstances, I would expect the amount of research required can be minimized and in theory, charges should come down. FCA's would probably disagree.

sandsy

freddymoney wrote: »

My situation is not unusual and I am sure that mots FCA's have managed many very similar transactions and in my view, experience acquires knowledge and builds expertise to a point where it becomes repeatable. For a prescribed set of criteria and similar circumstances, I would expect the amount of research required can be minimized and in theory, charges should come down. FCA's would probably disagree.

So the sort of thing you're talking about seems to be exactly what the regulator are telling advisers not to do:

https://www.moneymarketing.co.uk/fca-writes-advisers-commoditised-db-transfer-processes/

Aegis

freddymoney wrote: »

An interesting debate and one that does interest me as I also want to transfer a DB scheme. The current value is circa £350K and I have been quoted up to 9K for the advice and transfer. I have had other quotes in the region of 3K to 4K. As far as I can see I need two specific areas of advice
1, Is the transfer out of a DB scheme right for me?
2, Where is the best place to deposit my fund
My situation is not unusual and I am sure that mots FCA's have managed many very similar transactions and in my view, experience acquires knowledge and builds expertise to a point where it becomes repeatable. For a prescribed set of criteria and similar circumstances, I would expect the amount of research required can be minimized and in theory, charges should come down. FCA's would probably disagree.

The FCA does not like even the idea of commoditising final salary pension recommendations. Each case must be considered on its own merits from first principles.