Transfer to private pension
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TVAS said:
If the transfer value is falling this is an indication NOT to transfer because the growth rate required by the receiving scheme to match the benefits you are giving up is likely to be high, meaning you would have to take high risk and you may not have a high attitude to risk, nor may you not have the capacity to take on such risk.
Gilt yields have improved a bit recently and that will have decreased the transfer values which use the traditional safest investment of them all, gilts.0 -
why IFA's have given duff advice on DB transfers. They always agree as they do not get any money if you do not transfer.
This is COBS 19.1B Ban on contingent charging for pension transfers and conversions which in part says:"COBS 19.1B.3 R01/10/2020Except as specified in COBS 19.1B.9(1) or (2), a firm must ensure that both the methodology for calculating any part of, and the total value of, the firm’s adviser charges, employer or trustee funded pension advice charge or remuneration do not vary depending on whether or not:(1) the firm makes a personal recommendation to a retail client to effect a pension transfer or a pension conversion; and/or(2) the retail client effects a pension transfer or a pension conversion; and/or(3) (in relation to ongoing advice or other services in relation to the retail client’s rights or interests in a non-DB pension scheme) the rights or interests in the non-DB pension scheme include sums derived from a pension transfer or a pension conversion."
Historically there have been both benefits and problems from contingent charging and it's likely that past cases will still include some of the problems.0 -
jamesd said:TVAS said:
If the transfer value is falling this is an indication NOT to transfer because the growth rate required by the receiving scheme to match the benefits you are giving up is likely to be high, meaning you would have to take high risk and you may not have a high attitude to risk, nor may you not have the capacity to take on such risk.
Gilt yields have improved a bit recently and that will have decreased the transfer values which use the traditional safest investment of them all, gilts.0
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