Advice on lump sum pension portion please .

alfmurph

She thinks in ripe old age she will just survive on the oap . When your in your seventies you do not spend much . You just sleep and eat small portions and aint fit to take major holidays .
I am banging my head against a brick wall .
My best hope is the financial advisor she must talk to .

xylophone

I know she must consult a financial advisor before she can get the money but would he refuse this offer or just take his cut and move on .

Not just any advisor - she will need a pension transfer specialist.

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

xylophone

When your in your seventies you do not spend much . You just sleep and eat small portions

Not true of some seventy year olds of my acquaintance....

Wildsound

I would highly recommend you see an IFA (as others have said) - pensions are an extremely complex puzzle (annoyingly for such a simple concept) and it pays to get it looked at properly.

When you do, they will ask you for a "fact find" or equivalent document. I suggest you be as accurate and thorough as possible when disclosing all the information they require. Non-disclosure of any accounts will hinder their analysis and likely result in them providing you insufficient advice.

There can be a lot of factors to consider, which in some cases, taking the lump sum and a reduced pension is the best option. For others, taking the full CETV value is the best option. An IFA has a responsibility to make sure you both have enough money to live off until you die.

Audaxer

Albermarle wrote: »

By taking the CETV I would be 100% in the hands of the market developments , whereas by keeping the DB scheme there is a better balance and I will be less anxious if there was a stock market collapse etc .

That makes sense.

When I do take the pension there will be a possibility of a lump sum. I have been given a figure if I was to take it now/early and the lump sum option had a commutation factor 1:22 so reasonably OK, especially as it would be tax free.

That is a very good commutation factor which would make the lump sum very tempting in my view.

alfmurph

I have a close relative who went to see an ifa earlier this year . He took her investment and split between 7 different companies . Seriously if you did a google search for investment companies these would be the first 7 that came up on page one of your search . Aberdeen asset . shroeders . bp .etc .
Does the majority of ifa just do the same .

AlanP_2

alfmurph wrote: »

I have a close relative who went to see an ifa earlier this year . He took her investment and split between 7 different companies . Seriously if you did a google search for investment companies these would be the first 7 that came up on page one of your search . Aberdeen asset . shroeders . bp .etc .
Does the majority of ifa just do the same .

As they are amongst the largest investment companies in the UK that isn't very surprising is it?

It's like saying you asked for bespoke recipes and your adviser suggested Tesco, Sainsburys, Waitrose as places to buy them.

More relevant is what they chose from the numerous investments each of them offers for sale.

So, taking the recipe example on a step - Sainsbury's own brand pasta alomg with Tesco's own brand mince and Heinz tinned tomatoes from Waitrose for a Spag Bol.

alfmurph

Good answer alan - well explained .
I have now read some of the threads and companies suggested by you guys and I am starting to get a grasp of what happens .
Thank you all for your help .

dunstonh

alfmurph wrote: »

I have a close relative who went to see an ifa earlier this year . He took her investment and split between 7 different companies . Seriously if you did a google search for investment companies these would be the first 7 that came up on page one of your search . Aberdeen asset . shroeders . bp .etc .
Does the majority of ifa just do the same .

In our portfolio, I have a Schroder fund and an Aberdeen fund. nothing from BP though as we dont do single company shares. Of course, like most fund houses, they have good funds and not so good funds.