Final Salary Transfer Out - Can anyone recommend a company?

Croeso69

Albermarle said:

His pension is only worth about 4k a year in the scheme, the fees seem excessive to say the least.
He already has a transfer out quote and it is just over 100k in value. 

I think your Dad needs to take a step back . £100K to give up a guaranteed £4K pa is poor value , especially if the pension increases with inflation every year .
For example if a 60 year old man wanted to buy an annuity that paid an inflation linked pension for life of £4K , it would cost well over £150K 

Nearer £200,000 with a 50% spouse pension given £100k buys £2,128 for a single life pension ...


Rates from Hargreaves Lansdow.

[Deleted User]

ratechaser said:

If I were a betting man I'd say this will be the next big pension scandal, maybe in 10-20 years time, when all these wonderfully large transfer amounts are exhausted. Possibly sooner, after whenever the next major market downturn happens. I'll be spitting feathers if it leads to restrictions on drawdown before I'm able to start accessing my own pots.

Can't say I'd want to be in the vicinity of AJ Bell when that happens either 

Interesting tangent. 
My expectation is that the looming DB pension scandal will involve transfers dumped in low-performing portfolios advisers are incentivised to direct clients to; adviser fees further to bleed clients' fortune over time. 
 

[Deleted User]

Posters shocked at fees for transferring DB pension transfers appear, as regular as brickwork, on these boards

Silvertabby

When the 'pension freedoms' were first announced I gave it 10 years before seeing floods of complaints from people claiming  'but no-one said that I would run out of money'.  

[Deleted User]

Silvertabby said:

When the 'pension freedoms' were first announced I gave it 10 years before seeing floods of complaints from people claiming  'but no-one said that I would run out of money'.  

Because people are stupid, right?
Work in financial services, Silvertabby?

Silvertabby

ZingPowZing said:

Silvertabby said:

When the 'pension freedoms' were first announced I gave it 10 years before seeing floods of complaints from people claiming  'but no-one said that I would run out of money'.  

Because people are stupid, right?
Work in financial services, Silvertabby?

Retired now, but back then I was a LGPS administrator.  As soon as the 'freedoms' hit the newspapers we were swamped with calls from fund members (both current and deferred), many of whom thought that we would just transfer 'their money' direct to their bank accounts.

After explaining that the new rules only applied to DC schemes, and not DB schemes such as public sector final salary pensions, we often had our ears chewed by people who would accuse us of not knowing our jobs/keeping up with new rules and would demand to speak to 'someone who knew what they were talking about'.   A few even said that they HAD to have this money, because they had already promised to pay for a wedding/holiday/new car/new kitchen etc.

Of course, I'm not saying that everyone who transfers out of a DB scheme lacks financial savvy - just that despite the LGPS CETVs being exceedingly low in comparison with some private schemes (less than 20 times the annual pension given up wouldn't raise my eyebrows) many people did indeed go on to transfer their LGPS benefits into private schemes simply to take advantage of the freedoms. 

Marcon

Silvertabby said:

When the 'pension freedoms' were first announced I gave it 10 years before seeing floods of complaints from people claiming  'but no-one said that I would run out of money'.  

That long...?

ewaste

ZingPowZing said:-

Because people are stupid, right?

In a word, Yes

trevjl

And that's the issue these days.. Legislate for the lowest denominator. As I saw on a noticeboard a few years ago.
Todays Health & Safety Message
You can teach health and safety
but sometimes stupidity takes over

sandsy

Marcon said:

sandsy said:

bigjoe90 said:

Some of the local quotes is getting are £2000+vat for advice regardless if he goes ahead or not and another 3% on top if he does. 

Nobody should be charging him an extra 3% if he goes ahead with a transfer than if he doesn't. That sort of charging structure was banned by the regulator for DB transfer advice towards the end of last year. He should pay the same amount for the advice regardless of what he chooses to do after taking the advice. 

The FCA banned contingent charging (i.e. where an adviser only gets paid for the advice if the transfer goes ahead). What OP is describing is two charges: one for the advice, which is payable regardless; and another charge if the adviser then arranges the actual transfer.

The ban on contingent charging incorporates charges for arranging the transfer. Advisers can't charge extra on top of the advice charge for arranging the transfer. See: https://citywire.co.uk/new-model-adviser/news/succession-whistleblower-flags-db-transfer-implementation-fee-proposals-to-fca/a1420557
 And the end of the story: https://citywire.co.uk/new-model-adviser/news/succession-drops-db-transfer-implementation-fee-proposals/a1442377