DB transfers

Dale72

Not really a regular on the board, but it seems as though a few people are beavering away trying to find the best alternative solution, so I'll come back in few day when the dusts settled.

Albermarle

 I'm 47, have a DB pension from an ex employer with a CETV of 67K with a corresponding pension of 2.7K. I want to transfer to an existing SIPP (H&L).

Firstly the multiple is rather poor at x 25 ( often they are around 30 to 35 ) and by the time you have paid an IFA ( if you can find one ) it will be even worse.

If you do find an IFA the transfer recommendation will be negative and although theoretically you can still go ahead , then HL and nearly all other providers will not accept the transfer.

Probably best to shelve the plan .

[Deleted User]

Dale72 said:

NotaBene12 said:

May I ask - which IFA did you use?

I'm having similar problems as the OP. I'm 47, have a DB pension from an ex employer with a CETV of 67K with a corresponding pension of 2.7K. I want to transfer to an existing SIPP (H&L). I have used SIPPs and ISAs for almost a decade and feel comfortable taking the responsibility for managing my own portfolio.

As the amount is above 30K, the pension trustee asks for a declaration from a IFA (interestingly, the form does not ask whether the recommendation is positive or not - just that advice was given) so I contacted a few IFAs and was turned down by all of them. Two said: "Come when you're 50". The rest blankly refused to take me ("We have had too many requests recently", etc.)

So I am really looking for a IFA that would take me without requiring extortionate fees.

Pretty much in the same boat as me. In the end I decided to use HLs own advisors as the price they quoted (2750 to 3000) was competitive, and having an existing relationship I trust them. If they come back and say no to a transfer, then they will provide me with paperwork to show I have received advice, which I'll then take to AJ Bell to transfer my pension to. 

Headache for you, Dale.
I understand you started the process before AJ Bell announced that they were pulling out of the market (1st June). At the consultation stage, did Hargreaves Lansdown tell you that, if the recommendation is against transferring you can still transfer to an alternative provider on provision on their Advice Declaration? That may now be impractical. How long is left on your CETV and have you paid HL yet?

Dale72

ZingPowZing said:

Headache for you, Dale.
I understand you started the process before AJ Bell announced that they were pulling out of the market (1st June). At the consultation stage, did Hargreaves Lansdown tell you that, if the recommendation is against transferring you can still transfer to an alternative provider on provision on their Advice Declaration? That may now be impractical. How long is left on your CETV and have you paid HL yet?

Yes HL told me I could transfer to another provider even if their advice was against this, I haven't paid them but as its 2 weeks since the process began I assume they've started the work. There is about 9 weeks left on the CETV. It looks like a stakeholder plan is going to be my best option, although I shouldn't 100% rule out HL saying yes to a transfer as if they did it purely on best interest (as opposed to fear of future comebacks) then I think I have a good case.

[Deleted User]

Dale72 said:

ZingPowZing said:

Headache for you, Dale.
I understand you started the process before AJ Bell announced that they were pulling out of the market (1st June). At the consultation stage, did Hargreaves Lansdown tell you that, if the recommendation is against transferring you can still transfer to an alternative provider on provision on their Advice Declaration? That may now be impractical. How long is left on your CETV and have you paid HL yet?

Yes HL told me I could transfer to another provider even if their advice was against this,
I haven't paid them but as its 2 weeks since the process began I assume they've started the work. There is about 9 weeks left on the CETV. It looks like a stakeholder plan is going to be my best option, although I shouldn't 100% rule out HL saying yes to a transfer as if they did it purely on best interest (as opposed to fear of future comebacks) then I think I have a good case.

Alas, Dale72, from my experience I fear Hargreaves Lansdown advice will be crafted to serve their interest rather than yours.
But it may be that they sold you the promise of a better course than is now available to you. The case is altered since they told you that.

Prism

Dale72 said:

ZingPowZing said:

Headache for you, Dale.
I understand you started the process before AJ Bell announced that they were pulling out of the market (1st June). At the consultation stage, did Hargreaves Lansdown tell you that, if the recommendation is against transferring you can still transfer to an alternative provider on provision on their Advice Declaration? That may now be impractical. How long is left on your CETV and have you paid HL yet?

Yes HL told me I could transfer to another provider even if their advice was against this, I haven't paid them but as its 2 weeks since the process began I assume they've started the work. There is about 9 weeks left on the CETV. It looks like a stakeholder plan is going to be my best option, although I shouldn't 100% rule out HL saying yes to a transfer as if they did it purely on best interest (as opposed to fear of future comebacks) then I think I have a good case.

Keep an eye on the boards because I am not convinced the stakeholder route is possible yet, mainly because there are hardly any left taking business and the ones that are might need an IFA to do the transfer - which nobody is going to touch as an insistent client.

NotaBene12

Albermarle said:

Firstly the multiple is rather poor at x 25 ( often they are around 30 to 35 ) and by the time you have paid an IFA ( if you can find one ) it will be even worse.

If you do find an IFA the transfer recommendation will be negative and although theoretically you can still go ahead , then HL and nearly all other providers will not accept the transfer.

Probably best to shelve the plan .

I'm increasingly starting to believe that the so called "pension freedom" is a myth. At least when it comes to DB transfers.

So far I have contacted +10 IFAs - all refused to deal with me. Two said they do it for over 50 year olds only. Another said that the amount is too small (but didn't mention their minimum). The vast majority refused in various other ways ("too busy", "no longer offering this type of service", etc.).

It seems that I have to simply give up on trying to transfer. What a joke.

Dale72

ZingPowZing said:

Alas, Dale72, from my experience I fear Hargreaves Lansdown advice will be crafted to serve their interest rather than yours.
But it may be that they sold you the promise of a better course than is now available to you. The case is altered since they told you that.

I've also complained to AJ Bell (For what good it will do) as they told me in May that they would still accept it.

[Deleted User]

Dale72 said:

ZingPowZing said:

Alas, Dale72, from my experience I fear Hargreaves Lansdown advice will be crafted to serve their interest rather than yours.
But it may be that they sold you the promise of a better course than is now available to you. The case is altered since they told you that.

I've also complained to AJ Bell (For what good it will do) as they told me in May that they would still accept it.

Anybody want to wager on Hargreaves Lansdown providing Dale72 with a recommendation to transfer?
I'll stand your bets.

dunstonh

I'm increasingly starting to believe that the so called "pension freedom" is a myth. At least when it comes to DB transfers.

Pension freedoms were brought into for DC pensions and had nothing to do with DB pensions.

I've also complained to AJ Bell (For what good it will do) as they told me in May that they would still accept it.

You would have more success persuading Apple to sell Android phones in their shops.