Transfer Defined Benefit Pension & the great suitability report ripoff

[Deleted User]

NottinghamKnight said:

Fair enough, I'll just put you ignore like so

 Pension freedoms should never have been allowed, freedom isn't a good option for many.

 many others have, you need to move on.

I can live with NottinghamKnight's decision, since so much of "rational debate" with him just involves correcting his factual errors.
But one person's loss should be another's gain. If he needs it, NK should take more time to articulate the rationale behind the position by which he introduced himself on this thread, that   "Pension freedoms should never have been allowed, freedom isn't a good option for many," addressed to the author of this thread. Start there.  

Malthusian

ZingPowZing said:

Are you saying the FCA should supply that service?
So am I.
Then, at least, you would get an impartial, honest report.

I would be up for that just for the lulz. Whereas IFAs love St James's Place because they make them look so good, SJP would love the People's Pension Advice Service.

It won't ever happen of course because the taxpayer would be on the hook for bad advice.

You appear to be unaware that those who can, do; those who can't do, teach; and those who can't teach regulate. If they could do it better they would be.

tdktdk99

Dear Board,

I have read this excellent thread and others and I am about to embark on the arduous task of trying to leave a DB scheme with a transfer value of over £500K. 

I have an initial consultation setup with a firm who has a success rate of recommending a transfer around 50%. 

I understand the process so I'm not asking for any info here but what I am asking is what criteria does the IFA use to arrive at a positive recomendation to leave or otherwise? In particular are there any particular criteria which mean you will definitely be disqualified. 

For example if your spouse was to have a high value state run pension final salary scheme e.g. if I was married to an NHS consultant and I benifitted from that scheme then surely that woudl make me less reliant on my own DB scheme and so could more safely opt into a money purchase or SIPP etc.

The reason I ask is that before I spent £7-10K I would like to have some idea of my chances based on the critiera the IFA will use.

Thanks in advance.


 

Officer_Dibble

Anything that makes the security of a DB pension less vital would make a transfer recommendation more likely. Spouse with high pension should help, any other DB scheme you have that you're not transferring, any reduced life expectancy (or something that could reduce life expectancy - tell them about your high blood pressure, 80 a day smoking habit and love of skydiving), any reason why leaving the pension pot in your estate is better than the DB spouse benefits if you die early, any other sources of income - BTL or whatever. Showing that you understand the risks involved and the need for cautious investments (this might not fit well with the apparent love of skydiving, perhaps you'd better not mention that after all). Investment experience. I seem to remember that the benefits of the increased flexibility figured highly in my recommendation to transfer - smoothing pension income rather than having some paid from 60 then a big leap as another pension cut in and state pension became payable - I can now take a fixed (but rising with inflation) pension from 60. If they ask if you're going to blow it all on a Lamborghini, the answer's no. Good luck.

Marcon

tdktdk99 said:

Dear Board,

I have read this excellent thread and others and I am about to embark on the arduous task of trying to leave a DB scheme with a transfer value of over £500K. 

I have an initial consultation setup with a firm who has a success rate of recommending a transfer around 50%. 

 

That's not a 'success' rate; it's simply a matter of fact, assuming it's correct. 'Success' in many cases is where a member understands that not transferring is the better option for them.

Advice has to be given on a personalised basis, so statistics are in any case meaningless.

tdktdk99 said:

I understand the process so I'm not asking for any info here but what I am asking is what criteria does the IFA use to arrive at a positive recomendation to leave or otherwise? In particular are there any particular criteria which mean you will definitely be disqualified. 

 

Read the first section headed 'The Right Pension' for useful info: https://techzone.abrdn.com/public/pensions/tech-guide-db-to-dc-transfers

You need to explain what you hope transferring would accomplish that can't be achieved with your existing DB scheme.

Also highly relevant, given it's direct from the FCA: https://www.fca.org.uk/consumers/pension-transfer-defined-benefit

tdktdk99 said:

The reason I ask is that before I spent £7-10K I would like to have some idea of my chances based on the critiera the IFA will use.

 

Why are you spending so much? That's way more than the majority of advisers are charging. Possibly going the abridged advice route might be a better starting point - you'd get an idea of what they might say for a fraction of the cost.