I can't find an IFA to help me

ITman2

I want to get advice from an IFA regarding transferring a final salary pension to a SIPP. However, I've contacted 4 advisers and they have all told me since I am only 47 years old, their indemnity insurance won't cover the advice and therefore they cannot help.

This seems crazy! I'm meant to have a right to transfer my pension, but I can't find an IFA to take the case, so I can't proceed with the transfer.

One adviser asked me a number of good questions (as I would expect) and could understand the rationale for my decision to transfer based on my personal circumstances. I just need someone to help me with formal due diligence and sign to say they have advised me.

Has anyone else found a solution to this?

JoeCrystal

Keep looking is my suggestion.

Thrugelmir

ITman2 wrote: »

I'm meant to have a right to transfer my pension, but I can't find an IFA to take the case, so I can't proceed with the transfer.

You do indeed have rights. However advisers correspondingly carry the liability. Not as cut and dried as simply doing it. They'll be an IFA out there somewhere.

Aegis

That IS crazy. They should either be advising on Defined Benefit transfers or not, rather than dipping a toe in the water from time to time.


Are you looking at small (i.e. one-man band) type firms at the moment? If so, you might want to look at slightly larger outfits, as those are likely to have at least one Pension Transfer Specialist who can deal with cases such as this as and when they arise.


Editing to add:


It may be that some of the firms you have approached are indicating that you aren't a large enough case for them to deal with, without saying so. If that's the case, you may not have much luck finding an adviser who can help on a cost-efficient basis. Without knowing your transfer value, I can't say for sure whether this is the case, but it may be worth considering.

dunstonh

I want to get advice from an IFA regarding transferring a final salary pension to a SIPP. However, I've contacted 4 advisers and they have all told me since I am only 47 years old, their indemnity insurance won't cover the advice and therefore they cannot help.

Only around 1 in 10 IFAs hold the permissions to do DB transfers. it is the sort of thing you either need to be doing a sufficient number of to make it justifiable and retain your knowledge or not do any at all. Most choose not to do any at all.

Your age has nothing to do with the ability to do DB transfers or not or PI insurance.

This seems crazy! I'm meant to have a right to transfer my pension, but I can't find an IFA to take the case, so I can't proceed with the transfer.

There are plenty out there. But with 1 in 10 ratio, you are obviously going to find more that dont. you have only contacted four.

One adviser asked me a number of good questions (as I would expect) and could understand the rationale for my decision to transfer based on my personal circumstances. I just need someone to help me with formal due diligence and sign to say they have advised me.

And that position is possibly why you are finding it harder as you comment is offputting to an adviser. It shows a bias to an outcome that hasnt been advised yet.

xylophone

You need a Pension Transfer Specialist.
Try

https://adviserbook.co.uk/

Type in location then in menu on left tick "confirmed independent"
"pension transfer" and any other specialism.

ITman2

Aegis wrote: »

It may be that some of the firms you have approached are indicating that you aren't a large enough case for them to deal with, without saying so. If that's the case, you may not have much luck finding an adviser who can help on a cost-efficient basis. Without knowing your transfer value, I can't say for sure whether this is the case, but it may be worth considering.

I don't have the largest CETV, but it's over £400k

dunstonh wrote: »

Your age has nothing to do with the ability to do DB transfers or not or PI insurance.

There are plenty out there. But with 1 in 10 ratio, you are obviously going to find more that dont. you have only contacted four.

And that position is possibly why you are finding it harder as you comment is offputting to an adviser. It shows a bias to an outcome that hasnt been advised yet.

Interesting. Two separate advisers have stated it's their indemnity insurers that won't allow them to advise a 47 year old to transfer; both stated this had come into effect since the British Steel issues.

Of course I have a bias, otherwise I would just leave my DB pension where it is. However, none of the advisers so far have said they thought it was a silly idea in my personal circumstances.

xylophone wrote: »

You need a Pension Transfer Specialist.

Thanks. I will continue to search. All 4 I have contacted so far have been transfer specialists; I checked before I contacted them.

Thanks for all the responses

dmelife

It may also be due to the compliance sign off from any network they belong to.
For example Intrinsic wouldn’t sign that off as you can’t take the benefits yet, so they would argue that you should wait until age 55 before making a decision, unless you have relevant industry experience which backs up your possible assumption that transfer values are currently high. Of course there are reasons why you might transfer early such as scheme deficit or difficulty.

ITman2

dmelife wrote: »

It may also be due to the compliance sign off from any network they belong to.
For example Intrinsic wouldn’t sign that off as you can’t take the benefits yet, so they would argue that you should wait until age 55 before making a decision, unless you have relevant industry experience which backs up your possible assumption that transfer values are currently high. Of course there are reasons why you might transfer early such as scheme deficit or difficulty.

My assumptions are that as I have 18 years before retirement and the pension is from a previous employer (so benefits only increase by CPI up to max 5% pa), then I believe I can out perform the pension. I don't have to be really risk averse with 18 years to go; I would have to achieve 2.6% return pa to outperform the pension assuming I live to 86 years old. If I live longer than that, then I would need to get a greater return. It's a risk I'm comfortable with. I just need to have my thinking confirmed by a specialist to ensure I haven't made silly assumptions or mistakes.

The pension fund is under-funded (as I believe most final salary schemes are) and the company itself is going to the dogs. I'd rather take the risk with a SIPP and have the flexibility on retirement age rather than get 90% from the PPF when I'm 65 if the fund does go bankrupt.

dmelife

They will do a transfer value comparator and appropriate transfer value analysis and I can tell you now the critical yield won’t be 2.6%!

It doesn’t matter if it’s a risk you’re comfortable with, it’s whether it’s a risk the adviser is comfortable with, as they carry a lifelong liability and when you run out of money in your mid 80s and decide it wasn’t such a good idea after all, you can make a complaint.

Be prepared to cough up £4/5k for the advice, which might be not to transfer.

Thrugelmir

ITman2 wrote: »

I believe I can out perform the pension.

That's assumptive though. If it were that easy there would be no investment industry at all.