DB transfer timeline

john-306

My wife will be able to access her DB pension in March 2021, she requested a CETV and it's around 240k or to remain is just over 7k per year no lump sum, 5.5k and 38k lump sum.
Still deciding what's the best option, but read on the details that she can't access the CETV in the last year before March 2021.

We thought we'd got ages yet to decide, but looks like we've only got 3 months to sort everything otherwise we're into the last year and can't have CETV anyway.

We're just wondering the transfer timeline required, do we find suitable IFA first, or open SIPP first (going to open one anyway) was waiting for Vanguard.
Can it all be sorted in 3 months, if IFA says no does that mean we can't anyway, or will some still accept transfer.
It might not be feasible anyway if the crazy IFA Fees I've read about are true.
I've been reading loads over the last month or so, but time it seems is running out.
Thanks

Brynsam

When did she get her CETV? It is only guaranteed for 3 months. The paperwork should give a clear indication of when that guarantee period expires. It may be that the scheme will be willing to issue a new CETV (could be higher or lower) once this one has expired. Members are entitled to one free CETV in any 12 month period, but if she is allowed a second one, expect to pay for it - £500 is common.

An IFA will struggle to get through the necessary hoops in anything under 3 months, so if she is serious about pursuing the possibility of a transfer, she needs to get cracking - although if the CETV is already several weeks old, she may find an IFA won't want to act, even if she can find one who has the necessary FCA permissions and the capacity to take on another client who wants transfer advice. Many can't, because of the costs/restrictions their PI insurers are putting on them.

The DB scheme cannot proceed with a transfer unless they have confirmation that your wife has received advice (not the same thing as following it); few SIPP providers will accept transfers unless the IFA gives a positive recommendation.

Expect to pay at least £5K.

p00hsticks

If you;ve been doing as much reading as you say, you should know by now that it;s a Pension Transfer Specialist you (she) need(s), not just a standard IFA.

And a lot of SIPP providers now won't accept transfers in of DB pensions from 'insistent cleints' - i.e. where the advice given is not to transfer but the client wants to go ahead anyhow. A search back throught this board should show up some threads discussing which ones will - AJ Bell comes to mind but I could be wrong...

john-306

Brynsam wrote: »

When did she get her CETV? It is only guaranteed for 3 months. The paperwork should give a clear indication of when that guarantee period expires. It may be that the scheme will be willing to issue a new CETV (could be higher or lower) once this one has expired. Members are entitled to one free CETV in any 12 month period, but if she is allowed a second one, expect to pay for it - £500 is common.

An IFA will struggle to get through the necessary hoops in anything under 3 months, so if she is serious about pursuing the possibility of a transfer, she needs to get cracking - although if the CETV is already several weeks old, she may find an IFA won't want to act, even if she can find one who has the necessary FCA permissions and the capacity to take on another client who wants transfer advice. Many can't, because of the costs/restrictions their PI insurers are putting on them.

The DB scheme cannot proceed with a transfer unless they have confirmation that your wife has received advice (not the same thing as following it); few SIPP providers will accept transfers unless the IFA gives a positive recommendation.

Expect to pay at least £5K.

Thanks, I put requested CETV, but she went on pension website and got it from there on Saturday.
Just things have been pushed due to reading through the pages and pages of contact and reading that CETV cannot be accessed in the last year.

john-306

p00hsticks wrote: »

If you;ve been doing as much reading as you say, you should know by now that it;s a Pension Transfer Specialist you (she) need(s), not just a standard IFA.

And a lot of SIPP providers now won't accept transfers in of DB pensions from 'insistent cleints' - i.e. where the advice given is not to transfer but the client wants to go ahead anyhow. A search back throught this board should show up some threads discussing which ones will - AJ Bell comes to mind but I could be wrong...

Thanks, yes I did say specialist IFA, couldn't remember the exact term .
I read AJ Bell would too, but that was on moneyvator website from 2017, I'll give a few companies a ring over the next few days to see if the transfer is even possible (she's still unsure which way to go).
Myself, thinks 7k annually is poor from what they are offering CETV and could do better myself.

AnotherJoe

Opening the receiving SIPP is the most trivial part of the process.
You shoudl be focusing 100% on finding an IFA who can do a transfer.

Everything else is a diversion.

Brynsam

john-306 wrote: »

Thanks, I put requested CETV, but she went on pension website and got it from there on Saturday.
Just things have been pushed due to reading through the pages and pages of contact and reading that CETV cannot be accessed in the last year.

She'll almost certainly need to make a formal request for a CETV - websites normally give indicative values, not guaranteed ones. Don't do that until you are sure there is an IFA ready and able to act - check they are prepared to sign off whatever paperwork the DB scheme will demand, regardless of what the IFA's recommendation is.

If she gets the formal CETV at least 12 months before her scheme's normal retirement date, all is well in terms of timing, provided she then accepts it (if that's what she decides to do) within the 'guarantee period'. Actual payment of the transfer value, if it goes ahead, can be within 12 months of the scheme's NRD.

Yes, AJ Bell do still accept transfers from DB schemes.

SonOf

We're just wondering the transfer timeline required, do we find suitable IFA first, or open SIPP first (going to open one anyway) was waiting for Vanguard.

You are probably making this harder for yourself by opening a new SIPP. Consumers who pick their own product and investments are higher risk for IFAs. Especially if there is no previous investment history. Let the IFA do their job. If after that, you want it moved, you do it then.

Albermarle

Myself, thinks 7k annually is poor from what they are offering CETV and could do better myself.

It partly depends on the conditions attached to the annual pension.
Being linked to RPI is better than CPI for example.
Spouse pension of two thirds is better than half
If the pension is payable from 60 rather than 65 etc

john-306

Albermarle wrote: »

It partly depends on the conditions attached to the annual pension.
Being linked to RPI is better than CPI for example.
Spouse pension of two thirds is better than half
If the pension is payable from 60 rather than 65 etc

Thanks, yes payable from 60, 50% spouse, can't recall RPI Or CPI.

Even chucking it in a cash SIPP it will last at least 34 years of what the pension is saying it will payout and if we both die sooner, the kids will get it, unlike the DB where it's lost for good.
That my thinking anyway, but wife more cautious.
Any other opinions welcomed.

AlanP_2

The IFA transfer specialist will sensibly, want to take a "family unit" view i would think looking wider than just this DB pension so start collecting information on other pensions for you both, State Pension situations, mortgage / debts etc. and what your objectives are.

The more information you have to hand the less last minute scrabbling you will need to do.