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

cloud_dog

Of course it doesn't.  History of posts simply on this board has proven that some people do not understand what they have, the value of the pension, the value to spouses, indextion, etc etc.

Obviously there are going to be individual cases where the benefits may not be clear cut but, you cannot simply say it negates any objectivity.

Diplodicus

Well, ok, it compromises an advisers objectivity.  Agreed?

hyperhypo

OP i had a  similar set of numbers to your (cetv of c. £430k equating to a £12.5 db pension) and a c. £200k DC pot. I convinced myself for a while that it might be useful to combine these two and live of yield. I engaged an IFA (no fee basis) who was prepared to do the transfer , who produced a set of metrics and projections which i frankly didn't understand as they didn't include any definitive indication whether it would be any benefit to me in making the transfer. It was just a set of projected sums, based on a lot of assumptions. Also didn't take any account of personal circumstances , ie any other substantial income streams other than SP at 66.  This was a couple of years back now. I decided not to transfer for two reasons really, the lack of any personal direction in the report i was given, and the obvious (to me) lack of any other defined income. I came to accept that the numbers per se re the transfer were somewhat seductive but i'd be happier with a mix of the DB and DC assets. Plus the RPI linkage with a highish 10% cap. I haven't regretted taking this course, although i have reflected that (for me) managing  the £200k is challenging enough , and i've wondered how much mental space dealing with c. £650k would occupy.  Finally i wouldn't have been prepared to accept a really high transfer fee i i had decided to proceed (i believe cost was £4k which was reasonable for the particular time), and i would have avoided any tied management company  completely.

ovenglove55

Hi, just to update. I questioned SJP whether it was worth delaying the DB transfer until say next year, as it may mean an increase in the currently offered 43x multiple value. They feel this is unlikely as the valuation is dependent on gilts, which may well increase soon due to all the government Covid related borrowing. Anybody feel this is not a valid point please?  

Piquet2

As others have said, SJP "Partners" are simply self employed sales people looking to sell you SJP products. They are not  Partners in the sense most would use that word. They are not independent. And are not investment managers. Their job is to sell SJP products, and only SJP products to you and pocket the commission. They make their money not through the returns your investments make but primarily through the upfront commission and lock in exit fees.

I looked at them some years ago, attracted by their marketing flim flam, with a view to switching from a city based wealth manager; instead of buying their product I bought a very long barge pole!

coyrls

ovenglove55 said:

Hi, just to update. I questioned SJP whether it was worth delaying the DB transfer until say next year, as it may mean an increase in the currently offered 43x multiple value. They feel this is unlikely as the valuation is dependent on gilts, which may well increase soon due to all the government Covid related borrowing. Anybody feel this is not a valid point please?  

I think the point was not to feel under pressure to act now.  Take your time and think about what you want to do.  It would not be right to act now solely on the basis that you may get a worse transfer value in the future, equally it would not be right to delay solely on the basis that you might get a better transfer value in the future.  Just take the variability in the transfer value over time out of the equation.

dunstonh

Hi, just to update. I questioned SJP whether it was worth delaying the DB transfer until say next year, as it may mean an increase in the currently offered 43x multiple value. They feel this is unlikely as the valuation is dependent on gilts, which may well increase soon due to all the government Covid related borrowing. Anybody feel this is not a valid point please?  

People have been claiming gilts may reverse since 2010.  Yet they haven't.   It will happen at some point.   When is anyone's guess.   And with economy where it is, you cannot expect interest rate rises to occur any time soon.   DB transfer values have been trending upwards on a wavy line basis for most of the last decade.  It will stop but it will unlikely be a sudden change.  It will likely become a wavy line in a downward trend.

Aegis

SJP may well be unable to offer DB pension advice now, as there was an FCA release this week which outright banned contingent charging on DB transfers. How they will respond to this, I genuinely do not know, given almost all of their charging at present is contingent.

Joey_Soap

Aegis said:

SJP may well be unable to offer DB pension advice now, as there was an FCA release this week which outright banned contingent charging on DB transfers. How they will respond to this, I genuinely do not know, given almost all of their charging at present is contingent.

Thanks, could you elaborate on "contingent charging" please? There's no doubting SJP are voracious money grabbers, something has to stop them one way or another and bring them more in line with the broader industry in typical terms and conditions. They get away with charging account exit fees, simply because they deny they are actually exit fees. But if it waks and quacks like a duck etc.....

JS

fred246

hyperhypo said:

OP i had a  similar set of numbers to your (cetv of c. £430k equating to a £12.5 db pension) and a c. £200k DC pot. I came to accept that the numbers per se re the transfer were somewhat seductive but i'd be happier with a mix of the DB and DC assets. 

I know there are good reasons to transfer but as someone who has retired early on a mix I am sure it is the best way. The DB pays all the bills and essentials. The DC buys all the holidays, meals out, entertainment etc. When the stock market crashed recently I just shrugged my shoulders. If I was 100% DC I am sure that there would have been some fear.