I can't find an IFA to help me

ITman2

Thrugelmir wrote: »

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

You're right, it's assumptive. Out of interest, what return do ppl here assume when forecasting their pensions?

sandsy

You can't just get due diligence/paperwork signed off. You have to take fully regulated financial advice on one of the most complex advised transactions. An adviser carries lifetime liability when they recommend that you keep or transfer your DB pension so it's not a trivial exercise - expect to pay several £000s.

Just because you believe you can do better by transferring isn't a valid reason to transfer. I suspect a proper calculation of the return you'd need to match your benefits could be nearly twice what you've come up with. Equally, it's likely that the new comparison you'd receive could show it would cost nearly twice as much to provide you with the same level of guaranteed income for your lifetime in a DC world. You have a nearly 50% chance of living beyond 86 assuming you don't have any known life limiting conditions.

PI insurers are nervous of people like you - nervous that you'll end up claiming you're a victim of poor advice in a few years time.

ITman2

sandsy wrote: »

PI insurers are nervous of people like you - nervous that you'll end up claiming you're a victim of poor advice in a few years time.

I'm receptive to all advice which I why I came here. I haven't asked anyone here to agree with me, just help me understand whether a transfer would be feasible and what others have experienced going through a similar process.

If it's the case that a transfer can only be recommended if a similar level of benefit can be achieved by forecasting less than 2.6% annual return over an 18 year period, then I can't see how anyone gets an IFA to provide a recommendation.

shinytop

What's your CETV multiplier if you don't mind revealing? I have asked about a CETV for my DB pension but it would have to be extremely high for me to even think aboout it.

ITman2

shinytop wrote: »

What's your CETV multiplier if you don't mind revealing? I have asked about a CETV for my DB pension but it would have to be extremely high for me to even think aboout it.

22

It's not fantastic, but I'm ok with it.

AlanP_2

Keep looking as suggested.

Approx £20k DB guaranteed with index linking up to 5% per annum or approx 440k CETV based on your 22 multiplier.

I know which one I would prefer and wouldn't be looking for an IFA but my circumstances are most likely different to yours.

LHW99

If it's the case that a transfer can only be recommended if a similar level of benefit can be achieved by forecasting less than 2.6% annual return over an 18 year period, then I can't see how anyone gets an IFA to provide a recommendation.

Something that could make it likely to be appropriate would be a single person with limited life expectancy (but not poor enough for terminal illness payment) who is approaching or just over 55 and needs to retire before NPA without actuarial reduction. Not saying it would be recommended but those sort of things could come down on the "more likely" side.

dunstonh

ITman2 wrote: »

22

It's not fantastic, but I'm ok with it.

22 is very low. In isolation of other info, that is not a desirable amount and shouts "stick with DB scheme".

Do you have any history with investing?
Do you know how you will handle losses? A £440k pot would have lost £44,000 in the last 6 weeks. Can you handle seeing that online?

That is just a minor drop as well. A crash is classesd at 20%. So, how would you feel seeing the value drop £88,000.

During the credit crunch and the dot.com period a decade before, the markets fell 43%. That is a loss of £189,200. So, how would you feel about seeing it drop like that?

New investors with no past investing history suddenly having hundreds of thousands of pounds to invest is a very dangerous mix.

gibbo888

I had different figures to you and a much higher multiplier, i spoke to 5 advisors and 3 would do the transfer, age was mentioned, ( i am also 47) but at no time was this ever an issue, so i would just keep shopping around, i used unbiased.co, and had many options to choose from.
every bodies situation is obviously different, but after going through the whole process and seeing the critical yield, investment return scenarios etc i would think very hard about transferring at a 22 x multiplier

shinytop

I've just asked for a CETV one of my DB pensions worth £5.4k, more as a matter of interest than anything else. Unless it's over 40x (which I very much doubt) I won't even think about it. My circumstances may be very different from the OP's though.