DB Pension Transfer to SIPP Charges

segovia

Over the past few years myself and my wife have consolidated all of our Pensions into our SIPPS, my wife transferred an Aviva Pension into her AJ Bell SIPP today, it actually took 4 minute and 34 seconds to complete the online form. The form asked whether it was a DC pension that we were transferring, tick box yes or no. Other than that it was an easy process 

We only have one Pension remaining that we would like to transfer into a SIPP but it's a DB scheme and we are advised by an IFA  it would cost £10,000.00 to transfer it or £6,000.00 if we can get the referer to waive their £4,000.00 introduction fee. Are there any IFA's who can give me a breakdown of what we get for £6,000,00 other than completing a transfer form that takes less than 5 minutes?

We have been quoted £750.00 for advice and letter of authority, just interested to know what we get for the other £5,250.00 

Regards

J 

Marcon

segovia said:

We only have one Pension remaining that we would like to transfer into a SIPP but it's a DB scheme and we are advised by an IFA  it would cost £10,000.00 to transfer it or £6,000.00 if we can get the referer to waive their £4,000.00 introduction fee. Are there any IFA's who can give me a breakdown of what we get for £6,000,00 other than completing a transfer form that takes less than 5 minutes?

We have been quoted £750.00 for advice and letter of authority, just interested to know what we get for the other £5,250.00 

Regards

J 

£750 isn't going to buy you full advice - sounds like abridged advice. Does that term feature anywhere in the paperwork you've received?

As for what else the full fee covers, read any of the endless threads on this forum about DB transfers and, most particularly, the huge and ongoing PI cost where a firm transacts DB advice business.

You might also have a look at this to see the countless number of ways the adviser could fall foul of the advice requirements: https://www.fca.org.uk/consumers/defined-benefit-pension-transfers/advice-checker

hyubh

segovia said:

Over the past few years myself and my wife have consolidated all of our Pensions into our SIPPS, my wife transferred an Aviva Pension into her AJ Bell SIPP today, it actually took 4 minute and 34 seconds to complete the online form. The form asked whether it was a DC pension that we were transferring, tick box yes or no. Other than that it was an easy process 

We only have one Pension remaining that we would like to transfer into a SIPP but it's a DB scheme and we are advised by an IFA  it would cost £10,000.00 to transfer it or £6,000.00 if we can get the referer to waive their £4,000.00 introduction fee. Are there any IFA's who can give me a breakdown of what we get for £6,000,00 other than completing a transfer form that takes less than 5 minutes?

We have been quoted £750.00 for advice and letter of authority, just interested to know what we get for the other £5,250.00

I doubt you intend this, but your post reads like, 'my only reason for getting my wife to transfer out of her DB scheme is "consolidation", please can you help me find an unscrupulous advisor to help facilitate this?' The fact each of you have consolidated multiple DC pensions into one is neither here nor there for transferring out of a DB pension, which is about converting one thing (a guaranteed income) into another (a personal investment pot).

Thrugelmir

segovia said:

 just interested to know what we get for the other £5,250.00 

£1,667 is paid to the HMRC in respect of the VAT levied. To recoup the costs of running an "office" £200 per hour wouldn't be unreasonable as a charge out rate for time. Then finally when you realised that you've mismanaged your portfolio and wish to recoup your losses. In the process suing your advisor. The advisors insurance company will compensate you. 

wjr4

Maybe spend 4 minutes and 34 seconds looking at the hundreds of other identical posts on this forum. 

HappyHarry

wjr4 said:

Maybe spend 4 minutes and 34 seconds looking at the hundreds of other identical posts on this forum. 

One of those recent threads also started by the OP.

dunstonh

. Are there any IFA's who can give me a breakdown of what we get for £6,000,00 other than completing a transfer form that takes less than 5 minutes?

Good grief.  That alone tells you that the OP has no understanding of what they want to do.

squirrelpie

"We only have one Pension remaining that we would like to transfer into a SIPP but it's a DB scheme"

I think this is the basic point. As is obvious from other response, people don't think this is a good idea on the face of it. So why do you want to transfer it?

If it is just for tidiness/simplicity etc then read all the other material people have suggested to understand why they are being so critical. If there's some other reason you want to transfer it, then you'll need to provide a lot more detail of your reasoning for people here to be able to offer any constructive help. Either about whether they think it is a good idea or how to do it.

Dale72

segovia said:

Over the past few years myself and my wife have consolidated all of our Pensions into our SIPPS, my wife transferred an Aviva Pension into her AJ Bell SIPP today, it actually took 4 minute and 34 seconds to complete the online form. The form asked whether it was a DC pension that we were transferring, tick box yes or no. Other than that it was an easy process 

We only have one Pension remaining that we would like to transfer into a SIPP but it's a DB scheme and we are advised by an IFA  it would cost £10,000.00 to transfer it or £6,000.00 if we can get the referer to waive their £4,000.00 introduction fee. Are there any IFA's who can give me a breakdown of what we get for £6,000,00 other than completing a transfer form that takes less than 5 minutes?

We have been quoted £750.00 for advice and letter of authority, just interested to know what we get for the other £5,250.00 

Regards

J 

£10000 does seem a bit steep, although it could depend on the size of the pot your wanting to transfer. I'd ignore the negativity on here, there doesn't seem to be many people willing or capable of managing their own investments. If your not sure about transferring then your paying for the years of training and experience of the IFA (although not too many others get away with charging in this way), If your sure you want to transfer, then effectively you are paying simply because the law says you have to (you could do what I intend to and ask for hard copies of all the reports etc, that way you'll have some scrap paper for shopping lists etc).

Thrugelmir

Dale72 said:

segovia said:

Over the past few years myself and my wife have consolidated all of our Pensions into our SIPPS, my wife transferred an Aviva Pension into her AJ Bell SIPP today, it actually took 4 minute and 34 seconds to complete the online form. The form asked whether it was a DC pension that we were transferring, tick box yes or no. Other than that it was an easy process 

We only have one Pension remaining that we would like to transfer into a SIPP but it's a DB scheme and we are advised by an IFA  it would cost £10,000.00 to transfer it or £6,000.00 if we can get the referer to waive their £4,000.00 introduction fee. Are there any IFA's who can give me a breakdown of what we get for £6,000,00 other than completing a transfer form that takes less than 5 minutes?

We have been quoted £750.00 for advice and letter of authority, just interested to know what we get for the other £5,250.00 

Regards

J 

 I'd ignore the negativity on here, there doesn't seem to be many people willing or capable of managing their own investments. 

Plenty of people do. Often as they've had little choice other than to do so. DB schemes provide a source of secure inflation linked fixed income that's not available elsewhere in the market. 

Albermarle

there doesn't seem to be many people willing or capable of managing their own investments. 

I think you have been reading a different forum !

There are some experienced investors on this forum who are acutely aware that ' past returns do not guarantee future performance ' and would not give up the DB part of their pension planning as a rational decision, especially if they are already well invested in the markets anyway through other pensions/ISA's etc .

Personally if I had only a good DB scheme but little other provision , I might take the risk with a good multiplier , so I could hopefully leave more of a legacy . Otherwise I consider a mix of DB and SIPP/ISA as a nice sweet spot - covered both ways .