DB Pension - Want to have lumpsum

cooky44

I am 55 years old.
I have 5 pensions in total:
2 with Standard Life - that I can now take as Lump sums - 1 group pension and 1 Stake holder pension plan.
1 personal pension that I have held since 18 - 37 years at moment
1 current pension ( work) - Aviva
1 DB Pension with Diageo.
Own Properties in UK and Europe as well as finance from deceased family.
I only paid a small amount into the DB pension and for 20 years did not look at the returns. When I asked last month I recieved a transfer figure of £61K.
As I have other investments and financial security I want to transfer this pension and drawdown to give my family help to purchase their first homes.
Having gone through all explanations and spoken to a few FA's - there seems to be little choice for me to get this pension transferred.
Aviva and Standard Life has said they would accept the transfer but I would have to use a FA to complete the standard form for this - but all I have spoken to have said that they would not touch anything less than £100 to £400K.
I am now at a loss as to what I can or cannot do. I realise that I will need to pay an FA for this and I have no problem with that but cannot find anyway of being able to do this.
Can anyone point me in the direction of a FA / Company that will be able to help.
TIA

dunstonh

I only paid a small amount into the DB pension and for 20 years did not look at the returns. When I asked last month I recieved a transfer figure of £61K.

DB pensions dont have returns. They are based on years of service.

Can anyone point me in the direction of a FA / Company that will be able to help.

Around 1 in 10 advisers hold the permissions. So, you need to shop around more. You are looking for a pension transfer specialist (that is the title of the type of adviser) and tell them up front that the CETV is £61k. That will avoid going through a process only to be told later that they are not interested.

As I have other investments and financial security I want to transfer this pension and drawdown to give my family help to purchase their first homes.

The pensions come with tax advantages. How does the tax on the pension compare to the tax on the investments? It may make more sense to use the investments. Especially if they are unwrapped.

xylophone

http://www.pruadviser.co.uk/content/knowledge/technical-centre/pension_transfer_conversion/

Pension transfer specialists

Currently a pension transfer specialist must have CF30 (customer function) and hold a qualification from:

G60 or AF3 (CII)
Pensions paper of Professional Investment Certificate (IFS)
Fellow/Associate of Pensions Management Institute
Fellow/Associate of Faculty of Actuaries

https://www.moneyadviceservice.org.uk/en/articles/transferring-out-of-a-defined-benefit-pension-scheme


The Money Advice Service has a retirement adviser directory you can use to draw up a shortlist.

All the advisers and firms on the directory are regulated and will also show whether they have advisers who are qualified to deal with transfers from DB schemes.

We suggest you contact at least three firms to find one that suits your needs.

The Directory splits out firms that will see you face to face and those that deal only by telephone or online.

atush

75% of that lump sum (minus adviser costs once you find one) will be taxalbe at your higher raate so will lose 20-40% or more of it.

Use your other investments to gift family (isas or unwrapped).

xylophone

The OP mentions a current pension but doesn't clarify whether DB or DC.

If he intends to take more than the PCLS from the pension he is considering transferring out, he may need to consider the MPAA as well as tax on the pension.

http://www.pruadviser.co.uk/content/knowledge/technical-centre/money_purchase_annual_allowance_mpaa/

https://www.pensionwise.gov.uk/en/tax

He mentions "finance from deceased family" - presumably cash from inheritance that he holds as savings.

He might wish to consider gifting now in hope of PETs - it would seem likely that his estate will be considerable.

cooky44

The current pension is dc.

dunstonh

As it is a DC scheme then any IFA can do it. Although I suspect most will be concerned about someone looking to fully drawdown the pension in one go like that.

Doing it as a trivial sum is not an issue but doing a larger amount when a great chunk of it will be taxed and there are alternatives available that could be used instead would certainly be something that may be best avoided as an adviser.

xylophone

As it is a DC scheme then any IFA can do it.

His current pension is DC but the one he wants to transfer out is DB.

I was just mentioning that if he manages to transfer the DB pension to a DC drawdown and takes more than the PCLS, then he might need to have regard to the MPAA on subsequent contributions to his current pension scheme.

kidmugsy

If the "deceased family" died within the last two years he could sign a Deed of Variation to transfer some of his inheritance to whomever he likes without any risk of its being subject to IHT on his own death.

CFrog

Cooky I have sent you a PM.

cooky44

CFrog - Many Thanks - very helpful. Sorted out now.
Thanks to all