IFA unwilling to recommend DB transfer...

Brynsam

Dazed_and_C0nfused said:

Albermarle said:

Well i dont necessarily want to transfer it to a SIPP as i wouldn't be comfortable self managing what is a large chunk of money. My thoughts were to transfer it to one of the many pension investment companies eg RL, SW ,Aviva etc

You have three choices 

1) Leave the DB pension alone ( RL, SW, etc will not accept an insistent client )

2) Transfer it to  Prudential or Standard Life stakeholder

3) Transfer it to A J Bell SIPP 

Once the initial transfer from DB to say SL stakeholder has happened is it possible to then transfer from SL to RL or SW or do they track back to the original source and refuse the transfer?

Once the transfer to a stakeholder has taken place, the funds are in a DC scheme. So far as any onward transfer is concern, it's a stakeholder to SIPP, which is simply a DC to DC transfer, which is all that needs to concern the SIPP provider - so no, they don't 'track back'.

HappyHarry

C_Mababejive said:

Thrugelmir said:

C_Mababejive said:

Thrugelmir said:

What was the IFA's primary concerns? 

Well i have yet to receive a written report but his general view was,,,well this is all about retirement and having enough to meet your needs. Your still working and therefore still accruing benefits,,,ring me back when your planning to retire in a few years time ..

You are still an active scheme member? 

Yes... 

If you are an active member, it would almost definitely be poor advice to opt out of the DB scheme and transfer it.

The fact you have no dependants is an argument for staying in the DB pension, after all you don't require a lump sum on death.

jamesd

C_Mababejive said:

I'm still working but could be drawing my pension right now. I cant keep working in my current employment AND claim my DB pension. If i transferred out i could continue working and invest my pension hopefully for growth until im ready to retire.

You've just given an excellent reason for not transferring yet: you're still in the scheme and adding years. The times to transfer are much better when the scheme stops or when yoou stop. Before that and you're normally giving up too much value.

C_Mababejive said:

i wouldn't be comfortable self managing what is a large chunk of money. My thoughts were to transfer it to one of the many pension investment companies eg RL, SW ,Aviva etc .

They offer funds that you can pick from. You must make those choices or hire an adviser to do it.

I don't have as much information as that IFA but I currently agree with them that now is not the right time to do it.

The pension will still be there in your name later and you can transfer when it's worth more.

C_Mababejive

Thanks all,, 

Although i dont have any direct dependants i still do have family members who could benefit if i snuff it before them and the money was in my own name rather than in a DB.

How can i be sure that future transfer values will be as high simply because im still in the scheme? They might go down..

sandsy

C_Mababejive said:

Thanks all,, 

Although i dont have any direct dependants i still do have family members who could benefit if i snuff it before them and the money was in my own name rather than in a DB.

How can i be sure that future transfer values will be as high simply because im still in the scheme? They might go down..

You can't. In the same way you can't guarantee it wouldn't go down if you transferred it.

snowqueen555

C_Mababejive said:

Thanks all,, 

Although i dont have any direct dependants i still do have family members who could benefit if i snuff it before them and the money was in my own name rather than in a DB.

How can i be sure that future transfer values will be as high simply because im still in the scheme? They might go down..

A lot of schemes also have life insurance/death benefits, does your not have it?

jamesd

C_Mababejive said:

How can i be sure that future transfer values will be as high simply because im still in the scheme? They might go down..

It's not certain, just so likely that it's not worth worrying. This is because:
1. benefits due increase with time in service and as scheme pension age gets closer
2. the key short to medium change that could reduce multiples is a non-trivial increase in interest rates, which is extremely unlikely in an economy needing stimulus measures like low rates rather than growth-reducing ones like higher rates.

The IFA knows this as well, hence their don't transfer recommendation.

Officer_Dibble

Some DB schemes have enhanced benefits if you don't have a nominated dependant - have you checked if yours does?

candie01

C_Mababejive said:

Thanks all,, 

Although i dont have any direct dependants i still do have family members who could benefit if i snuff it before them and the money was in my own name rather than in a DB.

How can i be sure that future transfer values will be as high simply because im still in the scheme? They might go down..

Did you manage to transfer?

TVAS

OMG the IFA is right.

There is nothing wrong with your rationale: single no dependants so you want relatives to benefit from the pension fund on your death.

The problem is you are jumping the gun:

You are still an active member of a DB scheme: STAY IN THE SCHEME
You have no idea when you want to retire: TAKE NO ACTION NOW
When you leave the scheme for the following reasons: scheme closure; you left the company, you were made redundant, a year before retirement, at this juncture you can discuss plans with the IFA.