Use St James Place for transfer of my Defined Benefit fund ?

Malthusian

ovenglove55 said:

I spoke with a friend last year, who had done an approx 700k DB transfer and he said he had a lot of trouble finding an IFA to do his, ended up with one miles away, and it had cost him a lot in fees.

You're thinking of using SJP so you're apparently willing to pay much higher fees than your friend (who used an IFA).

All DB transfers are expensive. They are unsuitable in the vast majority of cases and if you are confident enough that it's a good idea, the CETV should be such good value that the initial cost of transferring is neither here nor there.

SJP however seem still willing to undertake it.  SJP feel the quoted CETV multiple is higher than would be normally seen, so best to proceed now as another quote next year may well be lower. They also feel that due to current market conditions I should be well placed to gain additionally over the next few years as it recovers.

As others have said that sounds like FOMO marketing to me, which reputable financial advisers would not stoop to. They have no idea what the CETV will be next year. Nor do they have any idea when the market will recover from current conditions. In previous crashes it's taken 5-6 years for long-term investors to beat cash.

I knew the SJP advisor from a previous company we worked at. I am pretty keen to get the DB transfer done, as a draw-down on the 500k DB transferred component alone at age 60 will provide rather more than the 11.5k p/a the DB would currently pay. I do appreciate the latter is guaranteed of course, and mine has a yearly increase, albeit capped at 3% or rpi but it doesn`t provide much flexibility, and, of course, dies with me.

Who is "we"? The DB scheme will have a spousal benefit.

Reading between the lines, it seems to be getting harder and harder to get a transfer done and worried if I leave it another few years it may become virtually impossible.

If that's what SJP has led you to believe it's more FOMO marketing. People have had a statutory right to transfer out of a DB scheme since personal pensions were invented. Pension freedom reforms ironically made it more difficult by introducing the requirement for advice and ending the right to transfer for people in unfunded schemes, but I've seen no sign of any political appetite to make it more difficult. The gold rush has already happened and far fewer people have non-unfunded DB schemes now, so there would be little point in increasing restrictions in the name of consumer protection.

Mutton_Geoff

No connection to Yodelar but their take on SJP is worth a read. As others have said, your SJP contact is a salesman only for SJP products, you will fall into their scheme of vertical marketing.

The board of SJP is partly made up of the remnants of Hambros and Allied Dunbar who had shocking sales techniques in the 1980s.

https://www.yodelar.com/insights/st-jamess-place-review

bearshare

Any company which charges  a % fee for me to take my money back out in the first few years would not get my business. I understand the 'lock-in' timer resets if you put more money in, as well.
I also understand they are somewhat negotiable: if you cannot find anywhere else to accept the transfer, and are a good negotiator, get the exit charges reduced to zero first. The sum MAY be attractive enough for them to do that.

barnstar2077

bearshare said:

Any company which charges  a % fee for me to take my money back out in the first few years would not get my business. I understand the 'lock-in' timer resets if you put more money in, as well.
I also understand they are somewhat negotiable: if you cannot find anywhere else to accept the transfer, and are a good negotiator, get the exit charges reduced to zero first. The sum MAY be attractive enough for them to do that.

I wouldn't take their word on anything though, get any better deal in writing.

Mickey666

ovenglove55 said:

Hi, I have recently had a large transfer value quotation figure from my DB scheme. I am a deferred member, aged 54. I am in discussion with St James Place about handling the transfer, but I am a bit concerned about both their initial charges and the early withdrawal fees. I appreciate there are costs associated with doing a transfer (the SJP adviser quoted 2k for the actuarial valuation alone) but would welcome any comments as to whether this could be done in a lower cost and more flexible way?
In addition, I have around 160k in various other workplace pensions, which SJP are looking to take in transfer. Reading some of the other comments on here they don`t seem to get a good press, but are they really that bad? I am being quoted an AMC of 1.26 % plus fund fees of 0.3-0.7% which I can see is typically higher than say Hargreaves, but SJP say their ongoing advice is where the extra cost comes from . Again any comments please?  

No need for there to be any on-going management fee.  I know someone who transferred a DB pension into a drawdown fund with Royal London.  Had to pay a local IFA 3% for the advice and the paperwork included an annual 1% 'management fee'.  The IFA was questioned about this on-going fee, especially considering the RL fund is a managed fund anyway (0.35% pa), and asked if it was really necessary.  The IFA admitted it was not necessary, so they didn't sign up for it.

Shop around.

Diplodicus

“All DB transfers are expensive.. if you are confident enough that it is a good idea, the CETV should be such good value that the cost of the transfer should be neither here nor there..

Can see how that helps an adviser; can’t see how it helps a client, especially on a money saving site. 

atush

ovenglove55 said:

Hi, I have recently had a large transfer value quotation figure from my DB scheme. I am a deferred member, aged 54. I am in discussion with St James Place about handling the transfer, but I am a bit concerned about both their initial charges and the early withdrawal fees. I appreciate there are costs associated with doing a transfer (the SJP adviser quoted 2k for the actuarial valuation alone) but would welcome any comments as to whether this could be done in a lower cost and more flexible way?
In addition, I have around 160k in various other workplace pensions, which SJP are looking to take in transfer. Reading some of the other comments on here they don`t seem to get a good press, but are they really that bad? I am being quoted an AMC of 1.26 % plus fund fees of 0.3-0.7% which I can see is typically higher than say Hargreaves, but SJP say their ongoing advice is where the extra cost comes from . Again any comments please?  

You should be worried about their fees, run a mile.

jamesd

ovenglove55 said:

Why choose SJP ?  - I was under the impression that the large majority of IFA`s wont do DB transfers now as the cost of liability insurance has grown prohibitive, presumably due to litigation later on. ...
SJP however seem still willing to undertake it.  SJP feel the quoted CETV multiple is higher than would be normally seen, so best to proceed now as another quote next year may well be lower. They also feel that due to current market conditions I should be well placed to gain additionally over the next few years as it recovers.

Hargreaves Lansdown are one very well known firm that advises. If their advice is not to transfer they will do nothing to help except confirming that you took advice, on their paperwork only. Don't use them, they are just a very easy to find alternative.

The transfer value is likely to be higher next year because you're a year closer to the scheme normal pension age. Higher interest rates would tend to reduce values, lower increase them but not  by enough to matter. Since 2008 interest rate drops transfer values have been high compared to historic norms.. Once rare to unknown multiples like yours are uncommon still but no longer rare.

What you've been told is a combination of "sale closing" techniques designed to get the customer pressured to close the deal. Relax. Nothing bad enough to matter will happen if you are still working on it a year from now.

Joey_Soap

OP, everything you have said reeks of typical sharp sales tacics that SJP are known for. Honestly, I urge you to think again before using them.

Secondly, quoting a high CETV is a very poor reason to give up life long final salary pension benefits. There's great advice here for free. Far better than you'll get from the SJP salesman.

JS.

fred246

SJP are just a slightly more aggressive shark. They are all still sharks. There is nothing to stop an IFA charging the same as SJP.