Searching for unicorn, IFA to tfr DB

mazworld15

xylophone said:

plus there's clawback, as soon as we start to receive gov pension the monthly pension would be reduced by the amount of the state pension

The full amount? Are you certain of this? It is not necessarily the case. I'd suggest you check your latest scheme booklet or ask the administrator.

Sorry no, its 2.5k pa so not the full amount

mazworld15

Quoted fee of 1.2% on over 500k, seems fair?

Malthusian

So £6,000+? Sounds pretty standard to me. Bearing in mind this is presumably insistent client, so a one-off piece of work and ultra-high business risk with lifetime liability.

Diplodicus

A high tariff. 

Especially since the advice it buys bears no relation to the merit of it,  nor the work involved in producing it. 

If you go ahead mazworld, make sure you have a clear goal (a designated home for the pension) and that your adviser is prepared to facilitate it - the transfer-in application almost certainly will require the adviser’s signature, so do get confirmation that he will sign it before committing to your fee. 

happyandcontented

Our advisor charged 1.2% on 960k. He was very thorough, and came well recommended by several friends (not for pension transfer necessarily, but as an IFA) our monies have gone into a pension fund with a very well known company.

dunstonh

A high tariff. 
Especially since the advice it buys bears no relation to the merit of it,  nor the work involved in producing it. 

It seems entirely reasonable for the work involved and, more importantly, the liability that the IFA will be paying each year for as long as the business still exists.  For some, that may be until they are dead.

Diplodicus

Well that’s the nub: the most important factor of the fee is not how it may benefit a customer but the potential liability of the party providing the service.

In which  case, don’t hire an adviser unless you know your desired outcome. 

The fee is what it is, but anyone committing to that fee establish for sure that the adviser will provide his signature on the transfer-in form of the recipient of the pension in question; I’m sure you agree, dunstonh.

mazworld15

Diplodicus said:

A high tariff. 

Especially since the advice it buys bears no relation to the merit of it,  nor the work involved in producing it. 

If you go ahead mazworld, make sure you have a clear goal (a designated home for the pension) and that your adviser is prepared to facilitate it - the transfer-in application almost certainly will require the adviser’s signature, so do get confirmation that he will sign it before committing to your fee. 

Thanks, yes been here before with mine when IFA wouldn't sign, got an email from this IFA confirming he will sign

Diplodicus

Excellent. 
The guarantee of the signature (in any event) is the main justification of the fee.

cfw1994

mazworld15 said:

Diplodicus said:

A high tariff. 

Especially since the advice it buys bears no relation to the merit of it,  nor the work involved in producing it. 

If you go ahead mazworld, make sure you have a clear goal (a designated home for the pension) and that your adviser is prepared to facilitate it - the transfer-in application almost certainly will require the adviser’s signature, so do get confirmation that he will sign it before committing to your fee. 

Thanks, yes been here before with mine when IFA wouldn't sign, got an email from this IFA confirming he will sign

Diplodicus said:

Excellent. 
The guarantee of the signature (in any event) is the main justification of the fee.

Odd.  

Pretty sure if you pay for that “DB to DC advice”, they are obliged to sign to confirm you have taken advice.  

That advisor does NOT need to be the one “prepared to facilitate it” - let’s face it, they cannot approach your case, to give impartial advice, with a “known outcome”!

The real trick will be finding a good provider who is willing to take an insistent client when the letter the advisor signed says “the advice is to remain in the DB scheme” -  I’m also pretty sure a good 90% or more of those letters will take that form, and probably rightly so: DB schemes are often maligned and misunderstood, but they do offer solid guarantees, which a DC pot never will.

Oh, and that % is based on nothing more that reading these forums, so apply your own seasoning!