Cheapest DB transfer advice

[Deleted User]

I have a very old DB pension. In fact I had actually forgot about it, because I was only in it for 3 years in the 1980’s when I was 21-24.

I receive a very high injury benefit for life. I do not need this extra pension. The transfer value is £86,000. I want to transfer it to a DC scheme and draw it out with 25% and £12500 per year personal allowance ( I dont pay tax as have no taxable income ) till its gone.

I know I have to pay for “advice” to satisfy the trustee. Any idea the cheapest advice I can obtain and what scheme to transfer to so I can get my hands on the money lol ! 
Im 55 in November 

Albermarle

Your question is already debated at length on different threads .
Suggest you put in DB transfer into the search box above .
Here is one for starters:https://forums.moneysavingexpert.com/discussion/6097666/db-pension-transfer-ifa-costs#latest

Dazed_and_C0nfused

Are you married?

[Deleted User]

I read that thread but its got rather derailed with posters arguing with each other 

[Deleted User]

Dazed_and_C0nfused said:

Are you married?

Im not no and no intention to

Scrudgy

Phone around several companies and ask for the fees.

Explain you have a fixed income for life that does not require this DB to part of and you just are looking to release the funds. I assume you will be officially retiring in November? The permanent injury payments, financial independence and imminent retirement should be sufficient to allow even cautious firms to act upon your wishes. However the fees will not be small regardless and £3K might be around the best you will find. They still need to do all the work associated with any DB transfer.

xylophone

You need a Pension Transfer Specialist.  https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/pension-transfers-conversions/
You need to seek confirmation at the outset  and before engaging your advisor that regardless of whether  he makes a positive or a negative recommendation, he will still confirm that you have received regulated advice in a form acceptable to the ceding and receiving scheme.
Not all pension providers will accept a DB transfer without a positive recommendation.
https://adviserbook.co.uk/ You would tick "confirmed independent" and "pension transfer" when the menu comes up.

[Deleted User]

Scrudgy said:

Phone around several companies and ask for the fees.

Explain you have a fixed income for life that does not require this DB to part of and you just are looking to release the funds. I assume you will be officially retiring in November? The permanent injury payments, financial independence and imminent retirement should be sufficient to allow even cautious firms to act upon your wishes. However the fees will not be small regardless and £3K might be around the best you will find. They still need to do all the work associated with any DB transfer.

Many thanks my friend. Thats just what I will do now I have the CETV cert 

I actually retired at 48 and have had my injury pension in payment for 6 years. Im wasting my personal tax allowance and this DB thing I have will pay £191 a month from 55, when I get £6,200 tax free a month anyway ( its mental I know but I was a very high earner ! ) 
So Im hoping its a no brainer for an IFA to agree so I can release 25% tax free, £12,500 taxable but within personal allowance. Anyone know - would the rest be taxed at 20% or a higher rate if I grabbed the lot? I mean can one just transfer then take it all ? 

£3,000 or so fees would be ok as this is like free money. I only bothered looking into it when they traced me via a tracing firm as Id forgotten all about it. 

[Deleted User]

xylophone said:

You need a Pension Transfer Specialist.  https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/pension-transfers-conversions/
You need to seek confirmation at the outset  and before engaging your advisor that regardless of whether  he makes a positive or a negative recommendation, he will still confirm that you have received regulated advice in a form acceptable to the ceding and receiving scheme.
Not all pension providers will accept a DB transfer without a positive recommendation.
https://adviserbook.co.uk/ You would tick "confirmed independent" and "pension transfer" when the menu comes up.

Thanks again ! Im getting there lol 
Ive had a good read ! I think I would be called an “insistent client” ! 

Dazed_and_C0nfused

If you took it all in one tax year in which you had no other taxable income then you would have to pay a fair bit of 40% or 41% tax as you would have £64.5k taxable income.

Spread equally over two tax years and the maximum rate you would pay (assuming no other taxable income in each year) would be 20% or 21%.

AnotherJoe

Densol said:

So Im hoping its a no brainer for an IFA to agree so I can release 25% tax free, £12,500 taxable but within personal allowance. Anyone know - would the rest be taxed at 20% or a higher rate if I grabbed the lot? I mean can one just transfer then take it all ? 

It would be part 20 & part 40% (eg 20% up to ?£45k and then 40% the rest).

Take it out over several years to at least keep it under 40%.

If you actually needed a lump sum you'd be better to get a one year loan since the interest rate would be unlikely to be 40%