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

Thrugelmir

Scrudgy said:

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.

Out of interest what was the current annual pension value? 

MallyGirl

Mine for similar numbers is CETV of £108k with a pension at 60 of £1850 pa

garmeg

MallyGirl said:

Mine for similar numbers is CETV of £108k with a pension at 60 of £1850 pa

The answer may be different depending on whether you were 30 (transfer worth considering) or 50 (probably keep DB).

hyubh

xylophone said:

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?

Excellent, more confirmation that selling off the wife's DB pension was a great idea.