Reviewing pension advice from an IFA

scotty4406

Hi, I’ll try to keep this short. In 2015 I decided to take early retirement (63). I was in a defined benefit scheme, however as there were real concerns about how the scheme had been managed and a worry it could fail, I took advice from an IFA and agreed to cash transfer out of the scheme.
Although I’ve no specific reason/ evidence to be concerned, is it realistic/ feasible to have the investment decisions taken at the time reviewed by a third party e.g. a different IFA, or are they going to say “ oh, I would have recommended something different”.
I have a limited understanding of pensions, investments etc, so need to rely heavily on good retirement financial planning. I guess I’m looking for reassurance that the financial planning decisions that have been taken are broadly “ok”. The transfer value was approx £750k.
Realistic, sensible or not????
Tia

tacpot12

It is going to be extremely difficult to make any assessment without a lot of details about the scheme you left.

I'd suggest you post a summary of the scheme here for others to review. The details of the should be in the report that the IFA produced.

As you have been retired for over 12 months can you also tell what income you have received from the £750k transferred?

atush

What makes you think you made a mistake/your IFA missold you anything?

Are you unhappy with the way the investments have performed? Are the investments in line with our risk profile? If they are, then any shortfall in performance will have been caused by the lower risk investments concerned.

Did your old DB plan ever fail/go into the PPF?

scotty4406

To be honest, I wasnt looking/expecting folks to offer me free financial advice on here (hence the lack of investment info provided in my op) - though I do appreciate many on here will happily do that! Rather my question is .... is it realistic to expect one IFA to review the advice provided by another and not just to say they would have done it differently!

Apologies, if this appears to be a rather convoluted question, but I!!!8217;m reluctant to detail all the financial info here!

dunstonh

Although I!!!8217;ve no specific reason/ evidence to be concerned, is it realistic/ feasible to have the investment decisions taken at the time reviewed by a third party e.g. a different IFA, or are they going to say !!!8220; oh, I would have recommended something different!!!8221;.

Investing is about opinion. You have nearly 30,000 options to invest in on the London stock exchange and thousands of investment funds. You have loads of different investment models and many different views on risks.

If you asked 100 experienced investors how they invest, you would get 100 different answers. So, the chances are they would say they would have done something different.

If you asked a boutique IFA that uses a DFM, they will prefer their method. If you used an advisory IFA then they will prefer their method.

On paper one investment method may look better than the other. However, after discussion with you, the adviser may feel a different option is more suitable for your knowledge and experience or your objectives.

I guess I!!!8217;m looking for reassurance that the financial planning decisions that have been taken are broadly !!!8220;ok!!!8221;. The transfer value was approx £750k.

Why dont you tell us more about what you have. However, do expect people to pick at it. Not because it is necessarily wrong but its because their opinion will differ.

Do you actually have any concerns?

edit added after due to new post on thread:

... is it realistic to expect one IFA to review the advice provided by another and not just to say they would have done it differently!

They will almost certainly say they would have done different. Different platform, different investments, different style etc. So, what are you looking to achieve?

Tealblue

scotty4406 wrote: »

Hi, I’ll try to keep this short. In 2015 I decided to take early retirement (63). I was in a defined benefit scheme, however as there were real concerns about how the scheme had been managed and a worry it could fail, I took advice from an IFA and agreed to cash transfer out of the scheme.

There's one crucial piece of information missing here. You say there were 'real concerns....and a worry it could fail'. Who was doing the worrying - the trustees? if so, were they paying reduced transfer values to reflect the fact the scheme was, according to your post, in a parlous position?

You say you 'agreed' to transfer out. You chose to do so - there's a difference.

As for another IFA reviewing what you were told at the time, it would be impossible to replicate the real concerns you (or whoever) held at the time, particularly if the scheme is still with us and has survived.

Presumably you were given a full report, transfer value analysis etc? Reread those and see if the information you already have, based on the facts as you and the IFA believed them to be at the time, sets your mind at rest.

Otherwise just wait for what many see as the inevitable review of the 'mis-selling' of transfer out advice, even when the poor old IFA did everything right and the customer was adamant they wanted to transfer...

Aegis

scotty4406 wrote: »

Hi, I’ll try to keep this short. In 2015 I decided to take early retirement (63). I was in a defined benefit scheme, however as there were real concerns about how the scheme had been managed and a worry it could fail, I took advice from an IFA and agreed to cash transfer out of the scheme.
Although I’ve no specific reason/ evidence to be concerned, is it realistic/ feasible to have the investment decisions taken at the time reviewed by a third party e.g. a different IFA, or are they going to say “ oh, I would have recommended something different”.
I have a limited understanding of pensions, investments etc, so need to rely heavily on good retirement financial planning. I guess I’m looking for reassurance that the financial planning decisions that have been taken are broadly “ok”. The transfer value was approx £750k.
Realistic, sensible or not????
Tia

I don't think there's a problem with asking for a review, but the IFA will need to be experienced enough to analyse the recommendations to see whether they were suitable, not their personal recommendation. You'll likely pay a fairly high fee for the privilege because it's such a bespoke piece of work, and the outcome you get won't make any difference to your current circumstances in itself.


If you have genuine concerns, you can make a complaint and ask for the business to be reviewed, after which you can take it to the Ombudsman for a free review.


Do you have any reason to suspect that the advice was unsuitable?

HappyHarry

From an IFA perspective, this is difficult.

By reviewing someone else's proposal, the IFA can either;

(i) Disagree with the proposal, suggest something new, get paid for the new advice, and carry the risk of something going wrong with their own advice for ever.
(ii) Agree with the proposal, get paid very little, and carry the risk of something going wrong with someone else's proposal, for ever.

No IFA with any business sense is going to risk scenario (ii) above.

Brynsam

scotty4406 wrote: »

Although I!!!8217;ve no specific reason/ evidence to be concerned, is it realistic/ feasible to have the investment decisions taken at the time reviewed by a third party e.g. a different IFA, or are they going to say !!!8220; oh, I would have recommended something different!!!8221;.
I have a limited understanding of pensions, investments etc, so need to rely heavily on good retirement financial planning. I guess I!!!8217;m looking for reassurance that the financial planning decisions that have been taken are broadly !!!8220;ok!!!8221;. The transfer value was approx £750k.
Realistic, sensible or not????

You mean you are hoping for compensation of some description? Or aren't you confident with the IFA you are using? If the latter, how do you know that the next one you pick - the lucky soul chosen by you to review the previous one - isn't going to be just as bad/worse? And why would they want to take on such a job? Any half decent IFA is run off their feet, so they aren't looking for this sort of task.

Ultimately you were the one who decided to transfer three quarters of a million pounds. If you didn't have confidence in the advice you were given/understand what you were told, why did you do it? If the answer is that you were afraid the scheme would fail, that might well have had a heavy influence on what you chose to do - but if the scheme (or more accurately the sponsoring employer, since it is the employer's ability to 'prop up' the scheme which really counts) is still around, any IFA reviewing advice given in 2015 cannot help but be swayed by subsequent events.

Marcon

scotty4406 wrote: »

Hi, I’ll try to keep this short. In 2015 I decided to take early retirement (63). I was in a defined benefit scheme, however as there were real concerns about how the scheme had been managed and a worry it could fail, schemes don't fail; the companies sponsoring them mightI took advice from an IFA and agreed so there was clear recommendations to transfer out - but based on what? Your concern about the scheme falling into the PPF?to cash transfer out of the scheme.
Although I’ve no specific reason/ evidence to be concerned, is it realistic/ feasible to have the investment decisions taken at the time reviewed by a third party e.g. a different IFA, or are they going to say “ oh, I would have recommended something different”. They are highly unlikely to recommend exactly the same investment strategy, choice of funds etc. Are you actually asking whether they would be likely to advise that you did NOT transfer out?
I have a limited understanding of pensions, investments etc, so need to rely heavily on good retirement financial planning. I guess I’m looking for reassurance that the financial planning decisions that have been taken are broadly “ok”. What do you have in mind if another IFA says it was madness to transfer out? The scheme won't have you backThe transfer value was approx £750k.
Realistic, sensible or not????Perhaps understandable given the endless scare stories in the press, but what has triggered this sudden desire to check?

Please see above.

OldBeanz

Any professional would not criticise another professional without doing an in depth investigation and probably only for a court case. Folk on here are trying to tease out your concerns and discuss them which is all we can do and a long way from another IFA investigating the matter.