Defined Benefits Transfer 37K

chada_2

I know this is already discussed but i dont want to hijack someones thread.
I have a DB pension,transfer value 37K which i want to transfer for flexibility,to take at 55.im 52 at present.At age 55 the guaranteed amount will be £60 a month.I have rental properties and properties abroad which i plan to retire to after 55.Also a sizable inheritance and freelance work for PR company.I dont have much need for £60 a month but would like a lump sum.The question is i cant find an FCA anywhere to do this apart from a couple and their fees are extortionate.Anyone any other advice?
I only paid into this for 4 years ,over 20 years ago and it was frozen.

Thanks

Joey_Soap

Advice is compulsory because the transfer value is over £30000. Nothing you can do about it. If you have a sizable inheritance then it's probably in your own interests anyway, so just take the defined benefit pension guaranteed for life.

Dazed_and_C0nfused

It wouldn't have been frozen, it will have been deferred.

Assuming you can find someone who will work with you on this you are likely to turn £37k into maybe £25k after fees and income tax, maybe a bit more or less depending on how profitable your other income sources are.

Is a transfer still that attractive?

I have rental properties and properties abroad which i plan to retire to after 55.Also a sizable inheritance and freelance work for PR company.I dont have much need for £60 a month but would like a lump sum.

Albermarle

Many threads on this subject , even just from today ,
https://forums.moneysavingexpert.com/discussion/6221005/defined-contribution-pension-transfer-fees#latest

dunstonh

The question is i cant find an FCA anywhere to do this apart from a couple and their fees are extortionate

The FCA is the regulator. It sets the rules. You dont find them.  You need an IFA or FA (generally not the latter)

Fees reflect the level of work, the increased qualification requirements and the ever-increasing cost of liability.     

To be honest, based on what you have said, I cant see a justification for transferring the pension.  Ok, you have only written a few lines but you will need to think of something better than that.     However, I think the real problem is that at £37k, it will not be viable to transfer it.

At age 55 the guaranteed amount will be £60 a month.

And is that figure up-to-date or using an old benefit statement?    What is the penalty for taking it early compared to scheme age?

,over 20 years ago and it was frozen.

I doubt it was frozen. Deferred more likely.

chada_2

dunstonh said:

The question is i cant find an FCA anywhere to do this apart from a couple and their fees are extortionate

The FCA is the regulator. It sets the rules. You dont find them.  You need an IFA or FA (generally not the latter)

Fees reflect the level of work, the increased qualification requirements and the ever-increasing cost of liability.     

To be honest, based on what you have said, I cant see a justification for transferring the pension.  Ok, you have only written a few lines but you will need to think of something better than that.     However, I think the real problem is that at £37k, it will not be viable to transfer it.

At age 55 the guaranteed amount will be £60 a month.

And is that figure up-to-date or using an old benefit statement?    What is the penalty for taking it early compared to scheme age?

,over 20 years ago and it was frozen.

I doubt it was frozen. Deferred more likely.

Thanks for your reply.
Yes i have a transfer pack and those figures are up to date.I would prefer to have 30K lump sum than £60 a month for life to be honest.I did find FCA advisor who would do it for 3 grand.Does that seem right?

chada_2

dunstonh said:

The question is i cant find an FCA anywhere to do this apart from a couple and their fees are extortionate

The FCA is the regulator. It sets the rules. You dont find them.  You need an IFA or FA (generally not the latter)

Fees reflect the level of work, the increased qualification requirements and the ever-increasing cost of liability.     

To be honest, based on what you have said, I cant see a justification for transferring the pension.  Ok, you have only written a few lines but you will need to think of something better than that.     However, I think the real problem is that at £37k, it will not be viable to transfer it.

At age 55 the guaranteed amount will be £60 a month.

And is that figure up-to-date or using an old benefit statement?    What is the penalty for taking it early compared to scheme age?

,over 20 years ago and it was frozen.

I doubt it was frozen. Deferred more likely.

If i wait until 65 it is £148 monthly

longwalks1

£3k is very cheap for a IFA to assess a DB transfer, no matter how small the value.  I'm in the South East and been quoted between £6k and £9k (my CETV is a lot bigger though). 

As others have said, loads of helpful posts on here recently

chada_2

britishboy said:

£3k is very cheap for a IFA to assess a DB transfer, no matter how small the value.  I'm in the South East and been quoted between £6k and £9k (my CETV is a lot bigger though). 

As others have said, loads of helpful posts on here recently

Ok thanks for your reply

chada_2

chada_2 said:

britishboy said:

£3k is very cheap for a IFA to assess a DB transfer, no matter how small the value.  I'm in the South East and been quoted between £6k and £9k (my CETV is a lot bigger though). 

As others have said, loads of helpful posts on here recently

Ok thanks for your reply

one more thing,if the advice is not to transfer,can you still go ahead and transfer regardless?

tacpot12

chada_2 said:

chada_2 said:

britishboy said:

£3k is very cheap for a IFA to assess a DB transfer, no matter how small the value.  I'm in the South East and been quoted between £6k and £9k (my CETV is a lot bigger though). 

As others have said, loads of helpful posts on here recently

Ok thanks for your reply

one more thing,if the advice is not to transfer,can you still go ahead and transfer regardless?

Not many pension schemes will accept the transfer if the advice is not to transfer. AJ Bell will. Make sure that if you pay for advice you bind the advisor to sign any paperwork that your scheme needs to have signed before you agree to the fees.