Defined Benefit Transfer Costs

freddymoney

I managed to find a local IFA who appears to have a sensible charging model. I'll need to do my homework on them through (;-)

https://www.unbiased.co.uk/profile/financial-adviser/first-equitable-global-wealth-management--528437

Snozzle

I have also been looking into this and to date have been quoted nigh on £10,000 in fees - split between a pensions specialist and the IFA who would then do the transfer. Additopnally the IFA was then asking for a 0.5% annual management fee which is understandable given the on-going nature. Decided against going with it as percentage of pension pot just too high.

JoeCrystal

So... according to your highlighted IFA, you will pay £1450 just to see Comprehensive report and analysis. and only if they consider it suitable and appropriate for you to transfer, they will charge £950 on top to implement the transfer. Of course, they still decide on the appropriate investments as they need to ensure that it is better than whatever the benefits given up in the old scheme.

freddymoney

yes, but I already know that moving from my DB scheme is the right thing to do in my circumstances. If I had decided it was a bad idea I would not be wasting my time here.

JoeCrystal

freddymoney wrote: »

yes, but I already know that moving from my DB scheme is the right thing to do in my circumstances. If I had decided it was a bad idea I would not be wasting my time here.

Well, you may think so and the report might disagreed with your opinion. Anyway, please let us know what was the outcome from your meetings with IFA? I am always interested to hear what happened next?

freddymoney

I am judging my decision on the facts that I have available to me, which are.

All of my ex-colleagues who have approached an IFA have all transferred out of the DB scheme.
I do not have a 100% dependency on the DB scheme to provide for my retirement, I have other pensions and assets that will adequately cover my living costs without the need for the DB scheme.
The principle of having access to all of the DB fund before I reach old age is agreeable to me.

What in the above is risky?

J

sandsy

freddymoney wrote: »

I am judging my decision on the facts that I have available to me, which are.

All of my ex-colleagues who have approached an IFA have all transferred out of the DB scheme.

Irrelevant, as everyone's circumstances are different

freddymoney wrote: »

I do not have a 100% dependency on the DB scheme to provide for my retirement, I have other pensions and assets that will adequately cover my living costs without the need for the DB scheme.

That is a valid reason for transferring in some cases. But it doesn't absolve the IFA from undertaking all the work. The investments you've indicated you want to use aren't consistent with what most advisers would consider an appropriate investment portfolio for someone who is transferring and they have to take that into account when giving you advice on the transfer.

freddymoney wrote: »

The principle of having access to all of the DB fund before I reach old age is agreeable to me.

But might not be in your best interest given you seem to have little clue on investments. Just because you want it doesn't mean it's realistically a good financial outcome, and the adviser is required to look at the bigger picture.

freddymoney wrote: »

What in the above is risky?

Everything I've already mentioned plus: you show no understanding or tolerance of what the adviser's role must do and you're likely to be an insistent client.

freddymoney

I have managed to accumulate a significant amount of personal wealth that most people can only dream about, that is down to hard work and a number successful investments that have all been of my own doing. I am 63, the best I could hope for in another 20 years. I don't need an IFA t map out the rest of my life for me, all I need is someone to move my DB scheme into a holding area while I decide what to do with it. It is as simple as that.

freddymoney

I agree, % seems to be unfair and no proportional to the amount of work that is required. The advice may be more involved but it does not justify this level of cost. A % sound like a commission and I thought IFA's had moved away from this model and fixed fees should be the norm.

Oldskool90

JoeCrystal wrote: »

@Oldskool90 If it cost me few hundred pounds to get an one off private pension review with an IFA, you are certainly not going to find an IFA willing to do one of the most riskiest transactions in the industry for less than a thousand pounds!

I don;t need the them involved with the transaction. I only need the advice and form signed to confirm I have sought advice.

This is one of the points that IFA's appear to misleading people. As far as I am able to determine there is no legal requirement to expect the IFA to be involved in any transaction. In fact there is a massive conflict of interest in that most I have spoken to are insisting on the work on an ongoing basis. They have not confirmed that their advice would be favourable for the transfer if I was transferring business to them, but that appears to be the implication