DB Transfer

kazzykir

Afternoon All,
I would be grateful for some advice.     I have a final salary pension worth £280k which I would like to transfer to a SIPP or Stakeholder if needs be.   The reason is that I want to leave the money to my two sons if anything happened to me.   The scheme only passes it on to a spouse and mine passed away.    I realise it is a good pension but strongly feel that I dont want my sons to miss out.   I am nearing 56yrs old and spoke to two different advisers.    One went through all the paperwork with me, got me to send an up to date CETV,  asked all sorts of questions about how I would invest the money etc. and then after all that said 'now it passes to my supervisor and it will cost you £10k to give our answer' (which I was willing to pay until he said 'oh by the way it will probably be no and you will still have to pay us') .     I tried another company and again he said it was a good reason but didnt think it was 'worth his time as the insurance company will not be happy'.                I have a financial background after working in a bank for 15yrs, so totally understand how this all works but I cant get anyone to help me transfer.   I would be willing to even take out an indemnity but when I ring companies up, as soon as I say a 'final salary' they get cold feet.  I am still working and run a property company.  I do not intend to retire anytime soon but I dont want this money to go to waste.
Any ideas?

daveyjp

The money won't 'go to waste', its a monthly 'salary' for the rest of your life and there to enable you to live in retirement. 

You are only 56, you have many years to work on providing a legacy for your children.  How you achieve this whilst keeping a valuable DB pension is the advice you should be seeking from an IFA and it shouldn't cost £10k.

RoadToRiches

know how it feels, especially as I am certain what is best for me is the transfer but £10k is needed regardless if they say yes or no.  If they so no you are left with no option but to try and find someone who will accept that you had advice and will accept the transfer regardless of decision by IFA. It really is not on that this is the case, but we have to do what we have to do for what is right for you.

I wish you luck in whatever happens.

eskbanker

kazzykir said:

The reason is that I want to leave the money to my two sons if anything happened to me.   The scheme only passes it on to a spouse and mine passed away.    I realise it is a good pension but strongly feel that I dont want my sons to miss out.

Have you weighed up the option of buying life insurance instead of spending the money on transferring the pension?

hyubh

kazzykir said:

I would be grateful for some advice.     I have a final salary pension worth £280k which I would like to transfer to a SIPP or Stakeholder if needs be.   The reason is that I want to leave the money to my two sons if anything happened to me.   The scheme only passes it on to a spouse and mine passed away.    I realise it is a good pension but strongly feel that I dont want my sons to miss out.

How old are your sons? If still juveniles or in full time education and the scheme does child pensions (might not...), would probably be better to keep the pension where it is until they would no longer be eligible, if that is your primary driver. 

dunstonh

 One went through all the paperwork with me, got me to send an up to date CETV,  asked all sorts of questions about how I would invest the money etc. and then after all that said 'now it passes to my supervisor and it will cost you £10k to give our answer' (which I was willing to pay until he said 'oh by the way it will probably be no and you will still have to pay us') .

An adviser is paid for advice.    So, whether the advice is to do A or B doesn't matter.  It is still advice.  Although £10k is far too high.  Possibly because the adviser themselves couldn't do it and needed a third party involved and both need paying for instead of one.  £3500-£5000 is more typical.

I would be willing to even take out an indemnity 

If you are experienced as you claim to be you would know that you cannot sign away your rights with the FOS.

but when I ring companies up, as soon as I say a 'final salary' they get cold feet.

They will do as only around 1 in 10 advisers will do that transaction.

 I do not intend to retire anytime soon but I dont want this money to go to waste.

Its not going to waste.  It will provide a secure guaranteed income for your lifetime.   You can use some of that income to buy a life assurance.

MX5huggy

Why not take the pension now and give your sons the monthly amount received? (There are probably consequences regarding your ability to make further pension contributions to other pensions doing this). 

xylophone

https://mlpwealth.co.uk/news-updates/28-why-will-no-one-help-me-cash-in-my-pension
I notice that this mentions AJ Bell (now not accepting transfer without  positive recommendation)
but 
Prudential and Aviva said they had no way to know whether an adviser had made a positive or negative recommendation.

And  Aviva offers a stakeholders?
https://forums.moneysavingexpert.com/discussion/comment/78388576/#Comment_78388576

https://www.aviva.co.uk/retirement/aviva-stakeholder-pension/

Prism

xylophone said:

https://mlpwealth.co.uk/news-updates/28-why-will-no-one-help-me-cash-in-my-pension
I notice that this mentions AJ Bell (now not accepting transfer without  positive recommendation)
but 
Prudential and Aviva said they had no way to know whether an adviser had made a positive or negative recommendation.

And  Aviva offers a stakeholders?
https://forums.moneysavingexpert.com/discussion/comment/78388576/#Comment_78388576

https://www.aviva.co.uk/retirement/aviva-stakeholder-pension/

However is it possible to open up a new Aviva stakeholder pension? Unlike their SIPP page there is no 'Open new pension' or similar option.

xylophone

However is it possible to open up a new Aviva stakeholder pension? 

Yes, through an adviser.
https://www.aviva.co.uk/adviser/documents/view/sp01001c.pdf

[Deleted User]

xylophone said:

However is it possible to open up a new Aviva stakeholder pension? 

Yes, through an adviser.
https://www.aviva.co.uk/adviser/documents/view/sp01001c.pdf

But advisers - generally - won't facilitate a DB pension transfer following a negative recommendation. Because it is safer not to.
Do you mean the insistent client should hire another financial adviser at this point?