Transfer of dbc pension to royal London

Orby

Hello All

Looking for advice from experienced posters please.

I have a cetv of 190000 from a dbc which I left two decades ago. The projected annual pension is £7000 from 60.

Due to the recent ill health of my partner and burnout from my current role in local government I have decided to transfer and live off this until my next pension (LGS) kicks in at 60 I am 55. This will be worth £8000. I estimate I will have approx 15000 per year until 80 by combining the two pensions. Not counting state pensions . Both have projected state benefit if £140 pw at 66 and 67 respectively. No children or mortgage savings under 10,000. Partner has no other provision.


I am being recommended Royal London Government Portfolio 3 which is a low risk portfolio and just wondered what the general views of Royal London are? I have not had to pay for this as ex employer funds it (bbc) The ongoing charges will be £500 per year from company proposing advice as I feel I will need reviews. The information from Royal London isn’t clear recthwir charges. I have reasonable grasp of world affairs but no experience of investing so don’t think I can do self invested sipp. I am reliant on living off capital and realise this is not the best time given ten year bull market is slowing , trade war with China and us and disinvestment from fossil fuels but this is my time frame so have to go for it .

I appreciate I am giving up guaranteed income but would rather have income from drawdown now over next 10 years from 55 - 65 then when I am an old crock ! I also realise the sums are quite small compared to others that’s what a life of working in the public sector delivers but isn’t bad for 55 and to stop working.

I am quite close to 3 month deadline

Thanks to all who reply.

SonOf

I am being recommended Royal London Government Portfolio 3 which is a low risk portfolio and just wondered what the general views of Royal London are

One of the country's biggest pension providers. Indeed, I read a couple of years ago that they were the largest provider of income drawdown in the UK. Their pension is relatively basic and a good option for an inexperienced investor who priorities simplicity above all.

The information from Royal London isn’t clear recthwir charges

Royal London are very clear on their charges. And as long as you stick to internal (own brand) insured funds (which the Governed portfolio does), you couldnt really be much simpler as it has an annual management charge which is based on the value (so tiered as the value goes up).

What is it about the charges you find unclear?
Why have you not clarified this with the adviser?

Dox

Orby wrote: »

I am quite close to 3 month deadline

Then it's pretty worrying that you haven't had such basic questions answered by the person giving you financial advice. Are you sure you've completed the whole advice process needed before you can transfer from a DB to a DC scheme - report, recommendation etc?

Orby

Thank you I have checked and the charge is o.45 from London.

The estimated return says it will boost savings by 0.15 to 0.25 per annum. This comes from a profit share award as it is a mutual company. I will clarify this with financial advisor as it seems this is less than inflation and charges !

I was just seeking opinions if this is broadly in line with low risk
investment.

DT2001

My OH had 2 pensions and after advice they were combined at Royal London. Performance has been steady and access to information good so on that basis I think they are OK. Did your IFA give you an option or just suggested RL and if the latter presumably justified it as being appropriate in terms of risk, costs and past performance. Are you comfortable with your advisors? As most on here are not experts, although well informed, you’ll tend to get personal experience rather than a broader picture.

DT2001

Orby wrote: »

The estimated return says it will boost savings by 0.15 to 0.25 per annum. This comes from a profit share award as it is a mutual company. I will clarify this with financial advisor as it seems this is less than inflation and charges !

investment.

That figure looks like the added mutual bonus that gets added annually to the policy. The return relates to the underlying funds performance. If you go to the RL website you can see the past performance for various funds and compare that with inflation and your expectations as they fluctuate.

xylophone

Both have projected state benefit if £140 pw at 66 and 67 respectively.

Voluntary contributions?

https://www.royallondon.com/media/good-with-your-money-guides/topping-up-your-state-pension/

john-306

Orby wrote: »

I have a cetv of 190000 from a dbc which I left two decades ago. The projected annual pension is £7000 from 60.

My wife recently had a CETV value and pension forecast close to yours for when she reaches 60 in just over a years time.
How easy was it to get IFA to agree to the transfer and if you don't mind sharing their cost?
Reading on here seems that it's hard to get any advisor to agree to a DB to DC transfer and the cost is extortionate if they do.
Thanks.

JoeCrystal

I have my personal pension scheme with the RL and I am okay with it. It is correct that the RL charges are clear though. Indeed, they got a booklet titled Clear Charges,:D