Pension transfer Adviser fee?

cus2000

Hello,
i'm looking to transfer an old pension into my current pension. I have to use a financial adviser to do this due to regulation (apparently).
Could anyone tell me what sort of fee an adviser may charge for this service?
Thanks in advance

kidmugsy

Is the pension DB e.g. a final salary pension?

dunstonh

There are only two reasons that require advice. Safeguarded benefits with fund value over £30k or DB transfers (30k doesnt really apply in real world as most providers wont accept them without advice regardless of value).

A DB transfer is one of the highest risk advice transactions going. So, the fee will be higher because of it.

A money purchase transfer with safeguarded benefits will still need a pension transfer specialist unless it is a GAR (in which case those with the GAR limitation can do it). Either way it is not quite as high risk to an adviser as a DB transfer but not far off. Indeed, I just filled out our PI insurance proposal form the other day and it asked us to summarise each and every case individually where a transfer from a plan with safeguarded benefits had taken place. That, DB transfers and esoteric investments are pretty much all the very high risk stuff that costs advisers more.

So, transactions in these areas are not normally cheap. However, pricing between firms varies significantly. So, its a bit like asking how long is a piece of string.

Nasqueron

I have an IFA for my pensions, there was no charge to move an old work pension into my pension plan she arranged (though I couldn't do it through the pension platform I have, I had to do it via her).

However, if you're talking about S32 pension where you must have an adviser, she charges 4%, (my other half has one of these and I asked in passing about it - partner had been quoted 5% from other IFA). That said my IFA said that it may not be a benefit to move the pension when charges are applied so they'd advise not to move it in that case.

tacpot12

The fee will be around £1500-£2000 if you haggle.

Make sure that as part of agreeing the fee structure for the advice, the IFA agrees to complete whatever paperwork the old pension scheme needs in order to know that you have received advice.

The IFA needs to be specifically qualified to give pension transfer advice.

This might be useful: https://www.fca.org.uk/news/news-stories/advising-pension-transfers-our-expectations

cus2000

Thanks for the replies,

I'm transferring 30K+ from a DB pension to another DB pension

Aegis

tacpot12 wrote: »

The fee will be around £1500-£2000 if you haggle.

Make sure that as part of agreeing the fee structure for the advice, the IFA agrees to complete whatever paperwork the old pension scheme needs in order to know that you have received advice.

The IFA needs to be specifically qualified to give pension transfer advice.

This might be useful: https://www.fca.org.uk/news/news-stories/advising-pension-transfers-our-expectations

That fee is very much on the low side for a DB transfer! I certainly couldn't go that low even if someone wanted to haggle.

greenglide

I'm transferring 30K+ from a DB pension to another DB pension

If you are transferring an old DB pension into a current DB scheme that you are still contributing to then an IFA isn't required. All you need to do is ask the current DB scheme how much the old scheme will be worth in their scheme. It is the current scheme you ask, not the old one.


Generally there is a time limit as to how long after you start with the new employer you can transfer the old pension in. Usually 6months or a year.

xylophone

I'm transferring 30K+ from a DB pension to another DB pension

https://www.gov.uk/government/publications/pension-benefits-with-a-guarantee-and-the-advice-requirement

Then advice is not mandatory?