Cannot transfer a Pension

xylophone

You need a pension transfer specialist.

https://adviserbook.co.uk/

When the menu comes up, tick "confirmed independent" and "pension transfer".

SonOf

I cannot get an IFA to deal with this and they all give different excuses.

Such as?

Remember that less than 1 in 10 IFAs transact in final salary transfers.

I have recently been made redundant and one IFA wont look at the it because they are terrified I will use the money to live on.

Something that some people do. So, not unreasonable for them to worry about that.

Another one said my attitude to risk was wrong. They asked me what it was from 1 to 5 with 5 been the riskiest. I gave 1 as the answer (as I thought this is what they wanted to hear) and was told I was too careful???

You are asking to replace a secure income for life with a risk based option. As you told them you didnt want to take investment risk, they quite correctly said a transfer was not suitable for you.

As far as I am concerned, the transfer is a no brainer.

Really?
Between 1988 and 1994, nearly everyone then thought it was a no brainer to transfer their DB scheme out. With hindsight, it was found not to be in around 4 out of 5 cases.

Historically over the last 30 years only around 1 in 10 people are suitable for DB transfers.

I need an IFA that will not mess me about - any IFA will do and I don't care how much they charge to authorise the transfer. It's MY MONEY and I NEED to obtain it.

And that is probably why IFAs are concerned about your situation. It sounds like you are trying to rob your retirement years to pay for now. That is a complaint waiting to happen.

This is why you are having problems.

Albermarle

Are you clear that if you can get the money transferred to a SIPP, and then withdraw it all at once you will lose a big chunk in tax - between £22K and £24K . So after the IFA fee as well then you will have less than £95K left .

Have you asked the pension company about taking the pension early/now, with the max amount as a lump sum ? This could mean a reduced pension - £1000 pa ?? and a lump sum of maybe £20,000?
Maybe they will not do it but could be another alternative.

Dox

nigelbb wrote: »

I think that you need to play the game & tell the IFA the answers that they want to hear. !!!!!! don't tell the IFA you want to transfer so you have money to live on until you receive other pensions. What you do after you have taken advice & done the transfer is up to you it's just that you have to make the case that it's a sensible thing for you to transfer out of a DB scheme & still provide you with a decent pension. In this case with an enhanced transfer value of nearly 70x it looks like a you could do much better pension-wise with 123K in a SIPP & this is what you need to emphasise.

OP doesn't need to make any sort of case - just prove they have 'received' advice, not necessarily 'followed' it. Stakeholder pensions are required to accept any transfer in, so even if the advice is not to transfer (likely), the transfer can still proceed - it is the DB scheme which legally needs to confirm you have 'received' the advice. Once you've transferred to a stakeholder scheme, it is a simple matter to transfer again to a SIPP, without advice, because it is a DC to DC transfer.

wayne1964

Hi
What is OP please?
Thanks

NoMore

OP = Original Post or Original Poster, so in this case you @wayne1964

xylophone

The Trustees want to wind the Pension up as I am the only one in it that is still of working age.

When the Trustees contacted you concerning this matter, did they point out the requirement for advice from a Pension Transfer Specialist?

Did they offer any assistance in this regard - see post 9 above.

Otherwise see post 12.

There is no way round the requirement to obtain the advice, whether positive or negative.

Below is an article from back in 2016

https://www.telegraph.co.uk/pensions-retirement/financial-planning/i-was-forced-to-waste-1k-on-advice-when-all-i-wanted-was-to-move1/

and since then the FCA has reiterated its position on DB transfers.

https://www.ft.com/content/fc48aa5c-9358-11e9-b7ea-60e35ef678d2

It has said financial advisers should start from the assumption that giving up a defined benefit pension — which pays a secure retirement income based on salary and lengthy of service — is unlikely to be suitable for their client.

You may find below worth a read

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/transfer-pension-scheme/

However, although most schemes provide the right to transfer, not every scheme has to accept an incoming transfer.

A stakeholder pension scheme is currently the only type of scheme which must accept any transfer from another registered pension scheme.