impossible to find FA for DB transfer

tiswiz

It is impossible to find a FA to transfer my £36k LGPS DB pension to a DC so I can take it out as a lump sum. 1st they are paranoid about getting sued in the future, 2nd they feel the risk to high for anything under £100k & 3rd if they find you to be an insistent client they up their fee so in effect they are scamming you which was what these pension rules were designed to minimise in the first place, does the government realise the pension freedom revolution seems to only apply to those with contributory pensions not those with benefit or final salary schemes?

JoeCrystal

tiswiz wrote: »

It is impossible to find a FA to transfer my £36k LGPS DB pension to a DC so I can take it out as a lump sum. 1st they are paranoid about getting sued in the future, 2nd they feel the risk to high for anything under £100k & 3rd if they find you to be an insistent client they up their fee so in effect they are scamming you which was what these pension rules were designed to minimise in the first place, does the government realise the pension freedom revolution seems to only apply to those with contributory pensions not those with benefit or final salary schemes?

Because it was meant to apply only these with DC pension schemes. That what the pension freedom is for. I would not transfer out LGPS unless you got very pressing reason. So how much pension LGPS promise to pay? Considering that the transfer value of LGPS tend to be much lower compared to these in private sector DB pension schemes?

kidmugsy

tiswiz wrote: »

1st they are paranoid about getting sued in the future

I imagine that they are cautious rather than paranoid. Presumably they've seen the courts often side with essentially crooked customers.

dunstonh

It is impossible to find a FA to transfer my £36k LGPS DB pension to a DC so I can take it out as a lump sum.

It wont be impossible but I would certainly be on guard and wary of that if that sort of request was made to me.

1st they are paranoid about getting sued in the future,

Good reason to be cautious (paranoid is not the word). Historically, the transaction you want to do is only right in around 1 in 10 cases. Throw in the fact you want to cash the pension in after transfer and pay a large amount of tax and you are just spiralling up the risk.

2nd they feel the risk to high for anything under £100k

Again good reason. The FOS and FCA still consider that people should have a certain amount of secure income before blowing the pension on cash lump sums.

3rd if they find you to be an insistent client they up their fee so in effect they are scamming you which was what these pension rules were designed to minimise in the first place,

Never heard or come across that before. However, I suppose it is theoretically possible if it is a type of adviser that breaks down the stages into cost segments. There is certainly increased risk of doing an insistent client transaction.

However, it is not a scam and "these pension rules" were not brought in for your type of pension.

does the government realise the pension freedom revolution seems to only apply to those with contributory pensions not those with benefit or final salary schemes?

Yes they do. That was the whole point of pension freedoms. To give DC schemes more options. They were never designed to be used by DB schemes. Even though it is possible to utilise them in an indirect way.

tiswiz

Has anyone else in a similar position found a FA willing to do DB transfer without the rip off fee? If so details please

PeacefulWaters

tiswiz wrote: »

Has anyone else in a similar position found a FA willing to do DB transfer without the rip off fee? If so details please

How much do you think is a reasonable amount to pay?

HappyHarry

tiswiz wrote: »

Has anyone else in a similar position found a FA willing to do DB transfer without the rip off fee? If so details please

Perhaps you could give an indication of what fee you think would be reasonable?

n.b. Your attitude and language will not help you find a decent adviser willing to help. This is high-risk business for an adviser, and most will find the thought of doing a (relatively) small transfer for an insistent client with a poor attitude would not be attractive business. You may want to tone down your approach.

Malthusian

tiswiz wrote: »

It is impossible to find a FA to transfer my £36k LGPS DB pension to a DC so I can take it out as a lump sum. 1st they are paranoid about getting sued in the future, 2nd they feel the risk to high for anything under £100k & 3rd if they find you to be an insistent client they up their fee so in effect they are scamming you which was what these pension rules were designed to minimise in the first place, does the government realise the pension freedom revolution seems to only apply to those with contributory pensions not those with benefit or final salary schemes?

They are perfectly right to be paranoid, you accused them of scamming you when all they'd done was give you a quote, they hadn't taken a penny off you. When you have spent all your money you will again accuse them of scamming you and you'll complain to the FOS.

In my opinion you should forget it. No reputable adviser will transact this.

What do you need the money for?

Deneb

tiswiz wrote: »

Has anyone else in a similar position found a FA willing to do DB transfer without the rip off fee? If so details please

No. I looked into it for my (relatively) small LGPS pension last year, but decided with the rate at which LGPS calculate a CETV, I would need a lobotomy to consider it good value.

tiswiz

Maybe i have a reason for my atitude, FA turned up to my house in new sportscar, initial consultation i was told fee would be £1k, later on had 2nd more comprehensive meeting where fee went up to £3k, like I said FAs ripping us off

HappyHarry

tiswiz wrote: »

Maybe i have a reason for my atitude, FA turned up to my house in new sportscar, initial consultation i was told fee would be £1k, later on had 2nd more comprehensive meeting where fee went up to £3k, like I said FAs ripping us off

Maybe you do have a reason for your attitude, and maybe you don't. My point was, it's not going to help you.

I'm not sure what the adviser's car has to do with your attitude? Would it be different if the car was five years old, or if the car was an estate car instead of a sportscar?

From my understanding, the adviser estimated a £1,000 fee, then completed some fact-finding leading them to fully understood your position, and then said that the fee would be £3,000. You then decided not to pay this fee.

Just how are you being ripped-off and scammed?