DB pension transfer - IFA thought yes But his boss says NO - Stuck.

Mick70

cfw1994 said:

Mick70 said:

cfw1994 said:

SonOf said:

Mick70 said:

xylophone said:

 Was this the 'triage' part or the full advice report? 

I still can't make this out.  I asked

 Has the firm you approached told you that it will not take you on as a client as its "triage" indicates that it would advise against transfer and therefore will not advise you at all?

  Is the firm providing a suitability report?

The OP has said

They took me on as a client (charge £3.5k) to give advice and that advice is No from the manager . Have had no report or anything just email off the IFA (as I was chasing it up) apologising that his boss had said No.

Has he only paid for triage?

I have never received any report . I have paid (or will be) an agreed £ 3.5k and was told if goes ahead then the fee would be 0.75% of pot and the £3.5k refunded .  That is all I know .  

So, you should be getting a report stating why they think it is not suitable to transfer.   The adviser firm is also required to confirm that you have received regulated advice.    

This sounds clear and obvious, otherwise what on earth did you think you were paying for!?
Get them to send it to you.

Mick70 said:

Andrew31 said:

Out of interest, what income did you tell the IFA you needed in retirement.  

for a couple I had down as 
Essential (no hols / social) -  £24.5k
Desired  -  £46k 

Hmmm.   I would personally have put my desired as above but not-that-much-over the DB amount.  Perhaps not so high as 46k.   Enough to play the game that shows you need more than the DB scheme was offering (26.7k, right?), but not so much that they think it is unattainable or (more importantly!), risky.   35k, for example.

I was simply being honest , when asked for essential pension and desired pension for both of us , I did spreadsheets and essential came out at 24-25 ,  desired came out at 46. 

re-read my reply, & it sounded a bit harsh (sorry) - the first bit is key (as SonOf put it) - you need to get that report that you have taken advice.   Good luck!

No problem . I have emailed the IFA to see if can meet up and will mention the report also 

Mick70

Problem is a report doesn’t solve my problem , it just puts in writing what I’ve been told anyway I assume ? 

sandsy

Mick70 said:

Problem is a report doesn’t solve my problem , it just puts in writing what I’ve been told anyway I assume ? 

The report should tell you why the firm don't recommend you transfer. It's worth investing some time to read it thoroughly and understand it. Especially if you intend to act against professional advice, just as you should if you were going to ignore a surveyor's report about why you shouldn't buy a property but decided to go ahead anyway.
Then if you still want to go ahead, you need the separate confirmation of advice, to give to your scheme trustees. 

Mick70

Have meeting with IFA tomorrow so should get official feedback hopefully 

ffacoffipawb

Your £1.7million would be down to £1.5million by now and no end in sight. Count your blessings and keep your DB!

By all means reinvest (drip feed) into DC pensions then get the best of both worlds.

Mick70

ffacoffipawb said:

Your £1.7million would be down to £1.5million by now and no end in sight. Count your blessings and keep your DB!

By all means reinvest (drip feed) into DC pensions then get the best of both worlds.

that is basically what they have said (although I still feel it is down to insurance ) , use the £26k+rpi db pension and try to get it all into a new works dc pot (as well as my own contributions) over the next 8-9 years , they say this would create similar figures to the offer come retirement but with far less risk (db would be about 32k then).  my head is battered 

Dazed_and_C0nfused

Mick70 said:

ffacoffipawb said:

Your £1.7million would be down to £1.5million by now and no end in sight. Count your blessings and keep your DB!

By all means reinvest (drip feed) into DC pensions then get the best of both worlds.

that is basically what they have said (although I still feel it is down to insurance ) , use the £26k+rpi db pension and try to get it all into a new works dc pot (as well as my own contributions) over the next 8-9 years , they say this would create similar figures to the offer come retirement but with far less risk (db would be about 32k then).  my head is battered 

Do you really mean contributing £19.5k in year one i.e. £26k less 40% tax then with basic rate relief added by the pension company, plus your own contributions for less than 10 years will turn into £1.7 million??

Even allowing for RPI increases and significant other contributions at some point would you not be limited to contributing £40k/year?

I think that is hugely optimistic investment return on probably £400k max contributions.

Albermarle

I think it means at retirement he will have a large DC pot ( few hundred £k) + still have the DB annual pension & overall that would put him in a similar position as cashing in the DB pension now, although with less risk.

Mick70

Albermarle said:

I think it means at retirement he will have a large DC pot ( few hundred £k) + still have the DB annual pension & overall that would put him in a similar position as cashing in the DB pension now, although with less risk.

yes, sorry I probably worded it badly (again) , this is what I meant  - DB pension will be about £32k then and in 8/9years  could have a dc pot around 350-400k  - that was main reason given for them saying NO 

Dazed_and_C0nfused

Albermarle said:

I think it means at retirement he will have a large DC pot ( few hundred £k) + still have the DB annual pension & overall that would put him in a similar position as cashing in the DB pension now, although with less risk.

Got it