DB Pension transfer but to where ?

C_Mababejive

I have a DB pension with a current CETV in excess of 750k.

I have growing concerns re the possible future behaviours of the backing employer and am considering a transfer.

Im a little unclear of my options.

Managing such a sum might be too risky for me within a SIPP as im not a pensions expert so what to do?

I think there are few options,

,recruit an IFA to invest it for me via his introductions to various pension providers


Can i approach a pension privder eg RL/Scottish widows and similar and buy a ready made product aka a personal pension??

I believe many such products have risk based portfolios eg cautious,moderate etc etc..

What sort of investment returns might i hope for in say a cautious portfolio?

Is 4% reasonable or ambitious??

Thanks all...

JoeCrystal

Undoubtedly, your questions can be answered by whoever is the IFA that you hired. Frankly, how big is your pension anyway? Pension Protection Fund will kick in if the backing employer collapses admittedly with some restrictions on index-linking and pension payout.

SonOf

Can i approach a pension privder eg RL/Scottish widows and similar and buy a ready made product aka a personal pension??

a) no - they would need an adviser with pension transfer specialist options and they dont have them.
b) SW offer a direct option which an adviser could use but there is no point as the direct option is more expensive than the adviser option.

What sort of investment returns might i hope for in say a cautious portfolio?

Is 4% reasonable or ambitious??

Depends on your definition of cautious. 4% is reasonable for growth on what I would consider cautious but you may consider my cautious to be defensive or adventurous. You would expect to take a lot less than 4% as an income though as you need to build in inflation protection.

I have growing concerns re the possible future behaviours of the backing employer and am considering a transfer.

That in itself is not a strong reason to transfer due to the protections that exist nowadays.

C_Mababejive

I know im required to obtain advice and to have the transfer carried out by an IFA. I guess one of the questions is, can i get the IFA to pipe the CETV into a ready made portfolio such as is offered by RL and others and then..well..pretty much just leave it? Are such portfolios relatively stable/benign /designed for retirement and therefore dont need annual tweeking? Im aware of the PPF though im not of course fully clear about what protective legislation there is,,presumably mostly drafted in the post maxwell era?

I suppose my dilemma is,,should i grab a nice fat CETV now and have a different kind of certainty that may be less worrying that the current perceived situation.. At least it will all be in MY name then..?

Albermarle

Although there are a lot of issues around transferring out of a DB pension , I just want to clarify this comment.

Managing such a sum might be too risky for me within a SIPP as im not a pensions expert so what to do?

Most mainstream SIPP's also offer managed portfolios , very similar to those offered for personal pensions, so this in itself is not a significant point.
Also an IFA might well use managed portfolios as part of their planning . It is not just about the portfolio/investments - tax, withdrawal rates etc all need careful management .

SonOf

can i get the IFA to pipe the CETV into a ready made portfolio such as is offered by RL and others and then..well..pretty much just leave it?

Yes they can.

Are such portfolios relatively stable/benign /designed for retirement and therefore dont need annual tweeking?

They are generally basic options and most of which will be middle of the road. Designed never to be the worst and wont ever be the best. Typically, they are aimed at the smaller investor. Not the larger investor. However, a larger investor could have one if they really wanted it.

However, with a large fund, you have other planning issues to be aware of. LTA for example.

Thrugelmir

C_Mababejive wrote: »

What sort of investment returns might i hope for in say a cautious portfolio?

Is 4% reasonable or ambitious??

A cautiuous portfolio will have a considerable weighting towards cash and fixed interest investments. Neither of which offer attractive returns at the current time. To achieve your 4% the equity element will therefore have to perform exceptionally well on a consistent basis. You are giving up a guaranteed income. For the uncertainty of the unknown. Don't let the sizable CETV cloud your vision. Jam today being an obvious attraction.

xylophone

You need a Pension Transfer Specialist, not just any IFA.
Post 12 https://forums.moneysavingexpert.com/discussion/6056603/pension-pot