Defined contribution pension transfer fees

Timwrigg

I'm intending to transfer my final salary pot (100k) into my flexible draw down scheme. However the government has made it law that for me to do this I must engage a FCA approved advisor- this I feel has created an opportunity for extortionate fees. I have been quoted 6k or 3k with compulsory investment in specified funds. I also find advisers priority is not this transaction but they have all wanted to Manage My portfolio.
Any advice would be much appreciated with regard to what is reasonable?
Regards 
Tight Yorkshire man. 

Dazed_and_C0nfused

There is no "pot" with a final salary scheme.

Why do you think transferring from DB to DC is the right thing to do?

Albermarle

The title of the thread is misleading .
This subject is regularly discussed on this forum so suggest you spend some time scrolling or searching eg
https://forums.moneysavingexpert.com/discussion/6219546/expected-cost-of-db-transfer/p1
https://forums.moneysavingexpert.com/discussion/6038905/who-will-accept-a-db-to-sipp-transfer-from-insistent-client/p1

MallyGirl

OP - I can edit the title if you would like. It should read Defined Benefit Pension Transfer Fees

dunstonh

Defined contribution pension transfer fees

It isnt defined contribution.  It is defined benefit.

However the government has made it law that for me to do this I must engage a FCA approved advisor- this I feel has created an opportunity for extortionate fees.

If there is an opportunity for extortionate fees, how is it that only 1 in 10 advisers transact in this area?   and firms are pulling out of this market left, right and centre as its not profitable or easy business.

There has been no major change to DB transfer requirements for advice for decades.

 I have been quoted 6k or 3k with compulsory investment in specified funds.

So, the fees are not extortionate then.

. I also find advisers priority is not this transaction but they have all wanted to Manage My portfolio.

They are more likely to give a positive recommendation if they are going to control the investments as the regulator feels that is lower risk.  

Any advice would be much appreciated with regard to what is reasonable?

About £5k.

Timwrigg

Dazed_and_C0nfused said:

There is no "pot" with a final salary scheme.

Why do you think transferring from DB to DC is the right thing to do?

There is a  Cash Equivalent Transfer Value. 

Timwrigg

dunstonh said:

Defined contribution pension transfer fees

It isnt defined contribution.  It is defined benefit.

However the government has made it law that for me to do this I must engage a FCA approved advisor- this I feel has created an opportunity for extortionate fees.

If there is an opportunity for extortionate fees, how is it that only 1 in 10 advisers transact in this area?   and firms are pulling out of this market left, right and centre as its not profitable or easy business.

There has been no major change to DB transfer requirements for advice for decades.

 I have been quoted 6k or 3k with compulsory investment in specified funds.

So, the fees are not extortionate then.

. I also find advisers priority is not this transaction but they have all wanted to Manage My portfolio.

They are more likely to give a positive recommendation if they are going to control the investments as the regulator feels that is lower risk.  

Any advice would be much appreciated with regard to what is reasonable?

About £5k.

6k to read a few A4 sheets of paper and advise sounds extortionate? 

Albermarle

Timwrigg said:

dunstonh said:

Defined contribution pension transfer fees

It isnt defined contribution.  It is defined benefit.

However the government has made it law that for me to do this I must engage a FCA approved advisor- this I feel has created an opportunity for extortionate fees.

If there is an opportunity for extortionate fees, how is it that only 1 in 10 advisers transact in this area?   and firms are pulling out of this market left, right and centre as its not profitable or easy business.

There has been no major change to DB transfer requirements for advice for decades.

 I have been quoted 6k or 3k with compulsory investment in specified funds.

So, the fees are not extortionate then.

. I also find advisers priority is not this transaction but they have all wanted to Manage My portfolio.

They are more likely to give a positive recommendation if they are going to control the investments as the regulator feels that is lower risk.  

Any advice would be much appreciated with regard to what is reasonable?

About £5k.

6k to read a few A4 sheets of paper and advise sounds extortionate? 

Like many other posters in recent times , you can complain until you are blue in the face but it will have zero effect .
If you want to transfer out of a DB scheme worth over £30K , you have no choice but get full advice from a pension transfer specialist at some expense. Plus it is not easy nowadays to even find one .
The reason is that they have to take out expensive insurance in case they recommend to transfer and it goes wrong and the client sues .

NottinghamKnight

Timwrigg said:

dunstonh said:

Defined contribution pension transfer fees

It isnt defined contribution.  It is defined benefit.

However the government has made it law that for me to do this I must engage a FCA approved advisor- this I feel has created an opportunity for extortionate fees.

If there is an opportunity for extortionate fees, how is it that only 1 in 10 advisers transact in this area?   and firms are pulling out of this market left, right and centre as its not profitable or easy business.

There has been no major change to DB transfer requirements for advice for decades.

 I have been quoted 6k or 3k with compulsory investment in specified funds.

So, the fees are not extortionate then.

. I also find advisers priority is not this transaction but they have all wanted to Manage My portfolio.

They are more likely to give a positive recommendation if they are going to control the investments as the regulator feels that is lower risk.  

Any advice would be much appreciated with regard to what is reasonable?

About £5k.

6k to read a few A4 sheets of paper and advise sounds extortionate? 

Maybe, why don't you do a few exams and jump o the bandwagon?

dunstonh

6k to read a few A4 sheets of paper and advise sounds extortionate? 

If that is what you think it is then perhaps transferring the pension is not for you as you clearly do not understand the risks.

Silvertabby

Timwrigg said:

Dazed_and_C0nfused said:

There is no "pot" with a final salary scheme.

Why do you think transferring from DB to DC is the right thing to do?

There is a  Cash Equivalent Transfer Value. 

A CETV is not a 'pot' value. 

Are you willing to post how much index linked DB pension (for life) you would be giving up in return for this notional £100K? You may get some more specific comments then.