DB Pension transfer - Cheapest advice.....?

rich744

Hi Guys, apologies if this is a repetitive query.
I am looking to transfer my DB pension into a DC fund. I have found that AJ Bell will receive the transfer and that my pension provider will execute the transfer if advice is taken (this does not need to be a recommendation to transfer). I have consulted with a few IFA's/Financial Planners and I have been quoted 6K-ish and ongoing management fee of .25% +£50 to 100£ per month to manage from one company and £4200 +.75% ongoing charges from another. 
Are these charges consistent with other peoples experience? My transfer value is around 300K
Are there cheaper routes to getting this done?
I basically want to get advice so I can transfer the funds and manage them myself in a low cost tracker index - I want the cheapest safe route to execute this.
Any experiences or info would be really helpful. Thanks in advance. 

DairyQueen

Suggest you search the site. You will find a multitude of threads on this subject. There are several posted each week.

In summary:
1) It's expensive
2) It's difficult
3) It is against the best interests of most people so unlikely that you will be advised to transfer.
4) You could transfer against advice as an 'insistent client' but it will limit your options and add to the difficulty.

JJG

Out of interest why on Earth would you want to do this?

Marcon

rich744 said:

Any experiences or info would be really helpful. Thanks in advance. 

Searching this board will give you plenty of both.

Saying you want to 'manage them in a low cost tracker' is something of a contradiction in terms.

Albermarle

Have the IFA's actually agreed that if the recommendation is not to transfer ( which it usually is ) that they would still be interested in offering ongoing investment advice ? This could be seen as cooperating with an 'insistent client ' ( one who still wants to transfer even with a negative recommendation) to still transfer, and I would have thought that the IFA would be skating on thin ice in this case, considering all the nervousness about these DB transfers.
Separately have you checked that in case of a negative recommendation and no ongoing fee that they will definitely provide the right proof that you have been through the correct advice procedure?

rich744

JJG said:

Out of interest why on Earth would you want to do this?

Marcon said:

rich744 said:

Any experiences or info would be really helpful. Thanks in advance. 

Searching this board will give you plenty of both.

Saying you want to 'manage them in a low cost tracker' is something of a contradiction in terms.

Why - No dependents / Health / I Have another active Final salary scheme / Tax / The opportunity to work a little less / The chance that the fund will grow / The offer represents x35 times the value of the annual pension. 

By manage, I essentially mean I do not want to pay an IFA to for ongoing 'management fees'. I essentially wish to invest, park and drawndown in a flexible way. 

rich744

Albermarle said:

Have the IFA's actually agreed that if the recommendation is not to transfer ( which it usually is ) that they would still be interested in offering ongoing investment advice ? This could be seen as cooperating with an 'insistent client ' ( one who still wants to transfer even with a negative recommendation) to still transfer, and I would have thought that the IFA would be skating on thin ice in this case, considering all the nervousness about these DB transfers.
Separately have you checked that in case of a negative recommendation and no ongoing fee that they will definitely provide the right proof that you have been through the correct advice procedure?

No - IFA's will not manage unless the recommendation is positive. But even with a negative recommendation they will provide a evidence that advice has been given. This is adequate for the pension scheme and I have found a receiving platform that will accept the transfer.

I find myself in a position of potentially hoping that the advice is not to transfer so I can execute and avoid any ongoing charges  - hence my request to source the cheapest advice.

Albermarle

rich744 said:

Albermarle said:

Have the IFA's actually agreed that if the recommendation is not to transfer ( which it usually is ) that they would still be interested in offering ongoing investment advice ? This could be seen as cooperating with an 'insistent client ' ( one who still wants to transfer even with a negative recommendation) to still transfer, and I would have thought that the IFA would be skating on thin ice in this case, considering all the nervousness about these DB transfers.
Separately have you checked that in case of a negative recommendation and no ongoing fee that they will definitely provide the right proof that you have been through the correct advice procedure?

No - IFA's will not manage unless the recommendation is positive. But even with a negative recommendation they will provide a evidence that advice has been given. This is adequate for the pension scheme and I have found a receiving platform that will accept the transfer.

I find myself in a position of potentially hoping that the advice is not to transfer so I can execute and avoid any ongoing charges  - hence my request to source the cheapest advice.

Fidelity are best known as an investment/platform provider , but they also offer advice on defined benefit transfers at £3.5K I thinkFidelity Pension Advice | Retirement Services | Fidelity

Marcon

Albermarle said:

Separately have you checked that in case of a negative recommendation and no ongoing fee that they will definitely provide the right proof that you have been through the correct advice procedure?

An adviser is now required to confirm that the relevant advice has been given (assuming that it has, obviously!), whatever the recommendation and whether or not they are involved in the ongoing management.

Albermarle

Marcon said:

Albermarle said:

Separately have you checked that in case of a negative recommendation and no ongoing fee that they will definitely provide the right proof that you have been through the correct advice procedure?

An adviser is now required to confirm that the relevant advice has been given (assuming that it has, obviously!), whatever the recommendation and whether or not they are involved in the ongoing management.

OK , I do not think it was as clear in the past , so good it is now more certain,

Thrugelmir

rich744 said:

JJG said:

Out of interest why on Earth would you want to do this?

Marcon said:

rich744 said:

Any experiences or info would be really helpful. Thanks in advance. 

Searching this board will give you plenty of both.

Saying you want to 'manage them in a low cost tracker' is something of a contradiction in terms.

The offer represents x35 times the value of the annual pension. 

Annual pension now or as at normal retirement date?