Transfer old Barclays GMP to SIPP?

xylophone

Think carefully and don't let yourself be persuaded against your better judgement!

dunstonh

One thing I have found is it is very rare for an IFA to agree to just deal with the transfer

I have answered that on your other thread.

None seem transparent on fee structure

Fee structure for the adviser should be easy. However, charges for platform/provider and funds is harder because the adviser will not have a clue who they are going to use or where it will be invested. They may have an inkling towards the end of the meeting but only a ballpark. If you have only spoken for minutes over the phone then the ballpark will be bigger. For example, one platform we deal with gives bespoke special pricing for larger portfolios but I have to request it and wait for response to know what they are offering. The higher risk you are as investor, the more the charges usually become (emerging market funds and asian funds tend to be more expensive and there are quality managed fund options in those areas whereas lower risk funds or more mature markets may be more likely to use trackers).

Trying to avoid mixing your two threads up by discussing similar things across both of them....

enthusiasticsaver

dunstonh wrote: »

I have answered that on your other thread.



Fee structure for the adviser should be easy. However, charges for platform/provider and funds is harder because the adviser will not have a clue who they are going to use or where it will be invested. They may have an inkling towards the end of the meeting but only a ballpark. If you have only spoken for minutes over the phone then the ballpark will be bigger. For example, one platform we deal with gives bespoke special pricing for larger portfolios but I have to request it and wait for response to know what they are offering. The higher risk you are as investor, the more the charges usually become (emerging market funds and asian funds tend to be more expensive and there are quality managed fund options in those areas whereas lower risk funds or more mature markets may be more likely to use trackers).

Trying to avoid mixing your two threads up by discussing similar things across both of them....

Very useful response as ever Dunston. Many thanks.

enthusiasticsaver

As I understand it the reasoning for pension companies to insist on IFA advice is to protect themselves against being sued for being allowed to transfer out a DB pension with protected rights? I am just weighing up pros and cons of going ahead with the transfer in my particular position.

Pros of transferring it out are that the pension will not be increasing with inflation once in payment so the value will be eroded over time but if invested in a SIPP it will hopefully grow in value.


Another pro is that it can be drawn flexibly in as tax efficient way as possible and if not needed to supplement income can remain invested to be passed on as inheritance.


A couple of cons though.


The transfer value only adds up to 17 years of the annual amount so assuming I live past 77 (quite likely as my mum is 84 this year and still in fairly good health) I will lose out ignoring any increase in value of investments or deduction of tax.


Most of the cons around surrendering a protected rights pension seem to centre around giving up security of a definite fixed income. I say that it will be surplus to requirements but thinking further about this most of our fixed definite income comes from my DHs DB pension which is about 8 times as much as this one and 3 times as much as my combined current LGPS and this DB pension assuming I let it pay out. Should my DH predecease me or we separate (not likely but I know it happens) I should get 50% of his so having some certainty with this second DB pension may be useful.


The other big con is the amount it looks like I will have to pay a pension transfer specialist by way of fees.


Just mulling things over but anyone who has transferred an old DB pension feel free to chip in.

DT2001

I see you have Xylophone helping you so I’m sure he can advise if the GMP Lloyd’s bank equalisation ruling might have any impact. The latest article on the WillisTowersWatson webpage for pensioners states it will be sometime before anything happens as there maybe an appeal and even if not discussions on how to apply the equalisation. It does say the increases, if any will be small, however I wonder in your case as you have a high annual fixed increase rate. Hopefully Xylophone can enlighten.

enthusiasticsaver

Thanks DT and I read about the equalisation. I am hoping as my NRD is less than a year away it won't affect me but who knows.

xylophone

Thanks DT and I read about the equalisation. I am hoping as my NRD is less than a year away it won't affect me but who knows.

This has come up a couple of times recently.

Steve Webb commented a few months back that the ruling had created confusion for schemes and advisers and that the government should be giving clear advice on how to proceed... some hopes, I fear!

This article refers to "some" schemes being unwilling to process transfer requests - I seem to remember a recent post where a member said that he (or perhaps a relative) was actually facing a delay.

https://www.ftadviser.com/pensions/2018/11/05/pension-transfers-put-on-hold-due-to-lloyds-court-case/

I think that those who wish to transfer will just have to "suck it and see".