IFA with sensible fees for obvious advice

Climberjohn

Hi

I have cancer; sadly not the good sort. My DB pension scheme isn't going to be much use to me. I've been offered 33x for transfer. I have lots of other income so the security of DB isn't much of an issue for spouse.
However, to make the obvious transfer, I *have* to show that I've taken advice.
Everyone is quoting me thousands of pounds, when the SIPP is already set up, the transfer quote is in place and the logic is about as bleedin obvious as it gets.
Can anyone point me at an IFA who will provide confirmation at a less rapacious rate?

Thanks

bigadaj

The only answer really is to shop around.

You have good justification that reduces the liability of any adviser so that should help.

If you quote the pot value and proposed charges then we may be able to comment further.

tacpot12

Sorry to hear about your situation. It must be very difficult for you.

If you can say which part of the UK you are in, someone may be able to make a recommendation for you.

Best of luck

WillowCat

Someone on here recommended bark.com. I used it, made it clear in my message I was after a pension transfer specialist IFA. I only got one offer, but that has turned out fine and he's charging 2% on not a particularly large CETV (115k) which was reasonably competitive with other quotes I had.

ebc

Sorry to hear about your situation.

We did a transfer of OHs DB to SIPP earlier this year and our IFA mentioned a possible issue if you die within 2 years of the transfer, in which case (I think) the pension might be considered to be within the estate rather than outside it.

Hopefully one of the IFAs on here will respond with more info, but this link might help.
https://www.oldmutualwealth.co.uk/Adviser/literature-and-support/knowledge-direct/pensions/death-benefits/pension-transfers-and-potential-iht/

So definitely worth clarifying this with an adviser before starting the advice process.

PeacefulWaters

I'm in an identical situation (without the spouse) and paid a fixed fee £7,000 on a £600k CETV. Assuming the cancer gets me within a few years this sum will effectively be a pretty large house deposit for each child.

I've retained it in a cash fund. Not my normal risk approach but you wouldn't expose house deposits to the markets.

There is a rather unpleasant IHT rule that says if you die within 24 months of shifting the pension type you'll have 40% tax to pay on assets over the IHT threshold. See link in the post above.

In other words I've got to cling on for another eighteen months. Borderline that I'll make it. I'll wreck myself on chemo for as long as possible once my current drug fails!

How much is your CETV and how much have you been quoted?

I'd suggest loss of spousal benefits by initiating a transfer would make your transaction marginally higher risk to the adviser than mine. The IFA is still carrying that liability (your other half could claim mis-sale once you're gone, along with the risk of new treatments coming along unexpectedly.

Oddly enough I've had a ball since I was diagnosed as terminal a year ago. I hope you have the health and resources to do the same before the inevitable happens. Make the most of what's left. Best of luck.

soulsaver

Sorry to hear of your situation, I've helped several get to a competitive deal.
I paid £2.5k on £300k and have suggestions that could be less. I have no commercial connection with the provider, just that I used them. You could try bark.com, I got 8 responses and found mine there.

See here https://forums.moneysavingexpert.com/discussion/5554142 see post #13

mk17

Soulsaver please check your PMs

nxdmsandkaskdjaqd

Sorry to hear of your situation, I am in a similar situation to you. I was forced to retire at 60 due to cancer and decided to take my hybrid pension (defined contribution with a small defined benefits component) with me.

I was being forced to seek financial advice because of the defined benefits component and found a local company that understood my reasons for want to transfer to a SIPP (with no strings attached).

The company completed the transfer on £400K fund for under £1000!

I have dropped you a PM if you want more details.

Regards

Climberjohn

Hi

Thanks everyone for the helpful comments; appreciated.
The values are DB of c. £20k/year from age 60; RPI linked; Spouse benefit 50%; me 53 she 54.
However I would normally have been taking at 55 with 20% discount to manage the LTA limit (alongside other pensions it would have made sense to take a reduced amount for longer); so £16k from 55 with £8k spouse beenfit.
Being traded for £662k - 33x the full pension and 42x the discounted one.
I have run the numbers lots of ways and frankly can't find a set of credible assumptions that would make it a good idea to stay with the DB!

soulsaver

mk17 wrote: »

Soulsaver please check your PMs

I don't respond to people who have never posted, sorry.

Do your research, there's plenty here to get you started.
Tell us what you've tried.
Post up your numbers & reasons for believing you should transfer out and what you've done to find a competitive quote.

Then if you're still stuck, PM me.

Good luck.