Db pension transfer advice/suitability report.

Pablo7474

bdorrell said:

I said leave to family/extended family not dependants. What do you mean be NEED, a need for what? I want to transfer as a DB is not BEST for me as I explained. The FCA says that the recommendation should meet my objectives - which is why I expected a recommendation to transfer. I cannot use many of the DB benefits so I don't want to pay for them.

I am just trying to help based on the info you have provided and what their reasons may be. By need, I mean do you have to transfer to meet your objectives, for example more tax free cash to repay a mortgage ( I suppose an adviser may consider that). From what you have said (and I know very limited details) it sounds like you can live out your retirement whether you transfer or not, therefore you do not need to transfer to be able to meet your retirement objectives. You could save the income from the DB to leave to family or set up life insurance, that way you could meet your leave to family objective whilst keeping the DB in tact. Also, remember that the pension was set up to meet your retirement income needs and not leave to extended family. 

Pablo7474

Scallypud said:

I also got a negative report but i was able to transfer to AJBell . I'm not sure if AJBell are still accepting negative reports but worth a try if you want to proceed.

I spoke with them a couple of weeks ago, they are no longer accepting on a negative report 

sandsy

It's not really aimed at people looking for a transfer, but you could have a read of the FCA's guidance for advisers who give DB transfer advice. Lots of stuff in that on what is meant by objectives, needs etc. And how they expect advisers to consider objectives like death benefits vs income. Suggest you start at Chapter 4:

https://www.fca.org.uk/publication/finalised-guidance/fg21-3.pdf

rich744

The advice is invariably to stay put. The pension transfer specialists and FA's are running scared of the regulator. 

Wanting to pass on your money seems like a very reasonable desire to me. 

Thrugelmir

rich744 said:

 The pension transfer specialists and FA's are running scared of the regulator. 

If the service being provided is below the expected standard that's hardly surprising. 

Marcon

rich744 said:

The advice is invariably to stay put. The pension transfer specialists and FA's are running scared of the regulator. 

Wanting to pass on your money seems like a very reasonable desire to me. 

No, not invariably - but certainly much more common than it used to be. 

Linton

rich744 said:

The advice is invariably to stay put. The pension transfer specialists and FA's are running scared of the regulator. 

Wanting to pass on your money seems like a very reasonable desire to me. 

The reason why employers pay into DB pensions and the government provides tax breaks is to help people to have a reasonable standard of living in retirement.  Money in pensions is not your money. It is money held in trust for your benefit. You have probably contributed less than half of it. Why should employers and the government subsidise your gifts to your beneficiaries?

The regulator seems to be taking a similar view.  If a transfer is demonstrably for your benefit eg if you have a terminal illness, you should have no problem with getting a transfer.

All regulated professionals must follow the requirements of their regulator. If they don’t they could be prevented from continuing in business. That is the purpose of having a regulator.

If you want complete freedom of choice with your money don’t put it in a DB pension.

Albermarle

If you want complete freedom of choice with your money don’t put it in a DB pension.

Good point . Of course any employee offered the chance of being in a DB pension would normally snatch the employers hand off, as it will almost invariably be better ( a lot better normally ) than  a DC pension  ( and then later complain that they could not get their money out.....)

Prism

Albermarle said:

If you want complete freedom of choice with your money don’t put it in a DB pension.

Good point . Of course any employee offered the chance of being in a DB pension would normally snatch the employers hand off, as it will almost invariably be better ( a lot better normally ) than  a DC pension  ( and then later complain that they could not get their money out.....)

I know. I have never understood why people seem happy to sign up for a DB pension fully understanding the deal and then later get disappointed when they can't have something entirely different. If you don't want a DB pension and its important to you then don't take a job with a DB pension.

Pablo7474

I think people just get carried away when they see a large transfer value (plus greed too). Most really should be happy knowing their income needs are being met and then can use other assets to leave to family etc. I also like that most on here say they need their income to be flexible when they have had a non flexible income from work for the last 40+ years!!