Can’t find an IFA to advise on DB transfer because on increased PII and sub £100k pot!

xylophone

Does your wife have a "statement of deferred benefits" from when she left showing pre 88 GMP/post 88 GMP/excess?

The scheme has no obligation to index link that part of the pension representing pre 88 GMP after GMP age (60 for a female) once the pension comes into payment.

This may be something to discuss with the adviser when she finds one.

The Normal Pension Age is 60? The pension is calculated 1/60 final salary (or some form of averaging) x pensionable service?

What is the early retirement factor? This is another matter for discussion.

Does the scheme apply  "clawback" at State Pension Age?
  
See https://www.lovemoney.com/news/74178/pension-clawback-state-deduction-hsbc-midland-retirement-payment-uk

I note that RBS is mentioned in the box - Natwest is part of the Group but it may  be it does not apply to the Natwest section?    This would be an aspect to cover with the adviser when she finds one.

Albermarle

arent many places who will accept a DB transfer without a positive recommendation but I’m looking!
AJ Bell are the only mainstream SIPP provider that seem to accept insistent clients .
A stakeholder pension ( not many about ) are legally obliged to accept transfers in .
A few non mainstream SIPP providers will also accept. 

[Deleted User]

AJ Bell also don't deal direct with IFAs and as such you cannot have your transfer charges deducted from your SIPP, as such you will have to pay the IFA directly out of your own cash.

Scrudgy

Deleted_User said:

AJ Bell also don't deal direct with IFAs and as such you cannot have your transfer charges deducted from your SIPP, as such you will have to pay the IFA directly out of your own cash.

They do if it is through the AJ Bell investcentre part of the company. They do not if it’s a YouInvest account. 

CapricornLass

I've read everything you have written Jeffmusicals, and I do understand that people dream of doing and achieving things in their retirement.  Not withstanding that this is your wife's dream, and her pension, I would have said that in normal times, it would be worth following up. 

But these aren't normal times, are they?  You are in a good well paying job at the moment, but in three months time it could be a very different story, and if you have to go job-hunting, your age is going to go against you. And I think you need to be realistic about the use of the house in France, too.  Even with a vaccine, I suspect that we'll be dodging around covid-19 for a good year, 18 months, maybe longer.  If your children only have 20 days holiday a year, a) they might not want to spend every single holiday they have at your holiday home, b) they may not relish having to spend all of their holiday allowance on self-isolation on either side of the channel.  (remember it can be imposed by the French authorities as well as the English).  And if they are unemployed, then they won't be able to afford the ferry fare, never mind have money for living and entertainment costs when they get there.  Unless you plan to foot those bills too? 

By all means have dreams, but I think that at the present time, I would wait. 

Jeffmusicals

You are in a good well paying job at the moment, but in three months time it could be a very different story, and if you have to go job-hunting, your age is going to go against you. And I think you need to be realistic about the use of the house in France, too.  Even with a vaccine, I suspect that we'll be dodging around covid-19 for a good year, 18 months, maybe longer.  If your children only have 20 days holiday a year, a) they might not want to spend every single holiday they have at your holiday home, b) they may not relish having to spend all of their holiday allowance on self-isolation on either side of the channel.  (remember it can be imposed by the French authorities as well as the English).  And if they are unemployed, then they won't be able to afford the ferry fare, never mind have money for living and entertainment costs when they get there.  Unless you plan to foot those bills too? 

Wow Capricornlass, I do hope your day job isn’t A motivational speaker! 😂. Again what my family and I wish for and what other people wish for Are unlikely to be the same. It doesn’t mean either is in the wrong. You clearly have a different attitude to risk than I do and a different approach to life. Our children mean everything to us and whatever I can do to make their lives happier, better and more fulfilled, then I will. I’ve seen too many people who’s life has been cut short at an earlier than expected time who didn’t do the things they wanted to do or dreamed of. What’s wrong with having ambitions and making them happen. Yes we could sit at home and grow old, get ill, sell the house we worked all our lives for to pay for our care, and leave our children with nothing. Sounds pretty bleak to me...! Each to their own and live and let live..I’m 54, not dead! And yes I plan to foot those bills too if I can! Why not; they take nothing for granted and have grown up to be the most wonderful, kind and caring people we could wish for. Make life better if we can ? Absolutely!!!!

Scrudgy

I have just completed a DB transfer in remarkably similar circumstances to yours.

• My wife’s DB pension from her bank days was £110k CETV. She left the bank 28 years ago.
• She just turned 55 three weeks ago
• We wanted to use some of the money to spend on a home project and the remainder to invest in a SIPP
• Her DB pension does not factor into our long term retirement arrangements, my DC pension is covering that.
• The monthly payment from the DB pension does not even cover the council tax when she retires

One pension transfer company said they would do my wife’s transfer, they later pulled out. We found another company who did take us on, and after many recorded video meetings, form filling, mini exams, risk assessments, and a £5k fee we got the money from the banks scheme into the SIPP last week.

Keep shopping around, you will find a provider who will help you. Reading your posts, it sounds like you are in a very similar position to us, and the company who did my wife’s said they were very satisfied that the transfer suited our circumstances and that our provision for our future using my DC pension made everything make sense. They are very strict on compliance, and the transfer had to meet their criteria, which luckily ours did.

To be clear. This was not an IFA, this was a pension transfer specialist company. They are not interested in managing your money long term. They just take a fee for work provided. Bearing in mind the work involved along with the professional indemnity insurance and the need for a compliance manager to vet every meeting and form etc. I don’t think the £5k is too bad, even though it would represent a bigger percentage for your pot compared to my wife’s slightly larger pot. The fee is fixed at £3k for the regulated advice and £2k to complete the transfer. If you don’t meet the criteria for the transfer, you will still pay £3k, and the company will wash their hands of you.  However, then you can probably get AJ Bell to accept your transfer all the same as your forms will be signed as having received regulated advice.

hyubh

Scrudgy said:

Reading your posts, it sounds like you are in a very similar position to us, and the company who did my wife’s said they were very satisfied that the transfer suited our circumstances and that our provision for our future using my DC pension made everything make sense.

That comes across as saying, 'our household already had lots of DC, so we decided to get shot of the DB'...

To be clear. This was not an IFA, this was a pension transfer specialist company. They are not interested in managing your money long term. They just take a fee for work provided.

Good to hear the firm's marketing spiel makes for a good game. (Lots of good lines to put onto the firm's website - you sound a very happy customer.)

The fee is fixed at £3k for the regulated advice and £2k to complete the transfer.

Is that charging structure now covered by the ban on contingent charging effective from this month...?

xylophone

Is that charging structure now covered by the ban on contingent charging effective from this month...?

https://moneytothemasses.com/saving-for-your-future/pensions/what-is-contingent-charging-and-what-does-the-ban-mean-for-me#:~:text=Contingent charging is a model,up costing thousands of pounds.
The firm's fee for the regulated advice  seems to be just a fixed fee? It appears that the additional charge would cover the firm's  dealing with the transfer admin? That is to say, if you do it yourself, you don't pay the fee?

Thus the person has paid for the advice.  The firm does not recommend a transfer and so will not arrange it. 
However, the firm must confirm that regulated advice was given.

Therefore the client makes his own arrangements with a stakeholder pension provider or eg AJ Bell?

Albermarle

I was thinking the same . The £2K for arranging the transfer you could do yourself , with or without a positive recommendation.