DB Pension transfer - IFA costs

AnotherJoe

Suemac2a wrote: »

But I can certainly see how eye-watering fees could negate the upside of transferring out, and this is actually now the main 'unknown' issue deterring this course of action.

If the fees for transferring out make that much difference, then IMO you have nowhere near a strong enough case to transfer out.

[Deleted User]

Suemac2a wrote: »

This query was really preparation for shortlisting IFAs and I am much clearer in the questions we must ask up front so has been hugely useful. ..my takeaway is to make sure we know the courses of action open to us through the process.

Do ask your chosen SIPP provider if their transfer-in form requires a declaration from a financial adviser and, do have your adviser confirm that he is prepared to sign a declaration to the fact that he has provided advice on the transfer-in form of your chosen SIPP provider.

bigadaj

ZingPowZing wrote: »

What does that even mean?

Seems fairly obvious.

You've moaned about not getting acces to your pension pot, then lumped it all into a few mega cap shares, when there's a significant risk of those shares performing badly with no diversification as they are all tech.

You are a classic case whereby an adviser could be held liable for transferring out of a db scheme, I'm surprised you don't realise that.

happyandcontented

SonOf wrote: »

You shouldnt need to go that high on the fee. £5000 is the sort of area to look at.

We cannot find one lower than 10k for review and transfer costs on 800k.

SonOf

happyandcontented wrote: »

We cannot find one lower than 10k for review and transfer costs on 800k.

In which case, look harder. There are plenty that will be less than £10k. However, it is worth noting that £10k equates to the equivalent of around a week's potential volatility on the investments. So, in the scheme of things, it is a drop in the ocean.

Suemac2a

AnotherJoe

I said "upside"not cost-benefit. Upsides would include control, responsibility, convenience, accessibility, transparency as well as *possibly* better financial outcomes in short, medium or longer term.

Traversing a minefield would not be an upside.

Strangely enough I dont relish handing a large ten figure hard-earned sum to a stranger for 25 hours work and guarding against ongoing fees when there are meant to be more cost-effective solutions available. Given the forum we are on here, that can't be a surprise.

I was a business consultant and I would have been laughed out the door if I had asked for an arbitrary 3% of the company's assets fgs. Even estate agents are twigging that doesn't wash.

The fact that a transfer would still be the correct thing to do after extortionate fees were factored in does not make those fees more palatable or more justified.

Happy, I will post here if we have better luck.

[Deleted User]

bigadaj wrote: »

Seems fairly obvious.

You've moaned about not getting acces to your pension pot, then lumped it all into a few mega cap shares, when there's a significant risk of those shares performing badly with no diversification as they are all tech.

You are a classic case whereby an adviser could be held liable for transferring out of a db scheme, I'm surprised you don't realise that.

There is no possibility of either of my advisers being held liable by me. That's your latest mistake.
My shares are not all in tech. You have no clue about my history in investments. You have no idea how dramatically my pension has grown. Good going, four mistakes in two posts.

And then, drawing the conclusion that I'm the cause of the problem is kind of the icing on the cake.

Oh, and your fifth error, bigadaj, you have no idea of the limits of my tolerance for risk, and it certainly is not for you to judge. The best defence against market volatility and intolerance of risk is to bank significant gains in the good years, I'm surprised you don't realise that. Genesis 41:35

I give humble thanks every day that I acted against the advice of my first adviser and found another who came to the opposite conclusion.

happyandcontented

SonOf wrote: »

In which case, look harder. There are plenty that will be less than £10k. However, it is worth noting that £10k equates to the equivalent of around a week's potential volatility on the investments. So, in the scheme of things, it is a drop in the ocean.

We have approached six and all are in the same ballpark. From this year their PI insurance is increasing massively we have been told and they are charging accordingly. Obviously, we are not looking for a cheap IFA we want one with a good reputation too, and the prerequisite qualifications and experience.

Can you ( or indeed anyone else) point us to any around the 5k mark? We would be grateful.

Suemac2a

Happy I also dislike the inference that we are looking to do things 'on the cheap'. I am looking to pay a fair amount to an excellent specialist to do the required professional job, as I do with my solicitor etc. Many sources suggest that an appropriate fee should in principle be significantly less than what is clearly actually available in the current market.

If professional indemnity has truly escalated fees specifically for db pension transfers, I would expect it to be itemised separately in a quotation.

This has been an invaluable thread for me so thank you to all contributors to my learning curve. We will talk to some advisors now and I will return to post if I have anything useful to say,

My gut tells me there is some correction due here, I am leaning towards the goal of working with a decent IFA on broader portfolio matters and not letting a single CETV tail wag the overall lifeplan dog, as it were.

[Deleted User]

Good luck, Suemac2a.

Let us know what happens.