DB to DC transfer above 30K: what are the cheapest options for advice?

NotaBene12

I have 3 DB pensions the CETV of each of which is above 30k (one is 50k, one is 65k and for one I am yet to receive the CETV but it is likely to be just above 30k)

I am aware that doing such transfer is jumping through hoops. First, advice from a IFA is required but only a few IFAs provide advice on such transfers.

Second, it is highly likely that the advice would be negative which limits the potential destination schemes. Apparently, only Aviva/SL stakeholder pensions would take insistent DB transfers but this is just a rumour. The only other avenue left would be a SSAS which is costly to set up.

Given that I am dealing with 3 relatively small DB pots the whole transfer becomes very expensive as each scheme would be considered a separate transfer so I would have to pay 3 times the IFA fees. I am at a stage where I am about to just give up as it seems that these transfers would cost at least 4% in IFA fees and, at least, 1.5% in SSAS fees. This is just to get your hands on the money in *your* DB pots

I'll make one last effort here and would like to ask if anyone is aware of an IFA which would charge no more than 700 per scheme to advice on the transfer?

As an insistent client, essentially, I am looking for the cheapest way to get a simple "No". It is amazing how much one is asked to pay for it.

Pablo7474

Hello,

Firstly they are not “your” DB pots, this is not how a DB scheme works although I don’t think we need another thread going into this.

I have not heard of fees anywhere near as low as you are hoping for, I reckon your cheapest would be 3 schemes for about £4K. I would give up if I was you unless  there really is a very good reason to transfer and unfortunately just wanting to is not sufficient. 

Good luck! 

cfw1994

Sorry to agree, but I think you will struggle to find anything worth considering, especially with 3 at those values.

I’d be more inclined to build the fact that you have some guaranteed income in your later years, albeit not massively significant, as a solid backbone to one sources.  
Focus on building up a decent DC pot to compliment them!

We have between us 3 DB plans which kick in at various points in the next 10 years….it all helps build up some ‘income streams’.

RoadToRiches

You’re looking at fees of around £4K per scheme and 1% of the CETV’s- as the pots are relatively low I’d leave them, in the same boat with one of mine. It’s not economically viable given the fees to transfer it, but will bring in £1,500 per annum leaving it and it will increase with RPI.

theronkinator

We've been quoted £6.5k per scheme so far, trying to find others. We'd be less annoyed if the fees were less if you got a no as the excuse they use for the costs seems to be expensive insurance which if it's a no we wouldn't be using anyway, also surely less work is required as well. We've done all the sums and the transfer to a SIPP makes sense for us. It's essentially a scam with uncapped fees, offer the service, say no to everyone and print money with no risk. Also a few we've spoken to have said they won't even proceed unless we were to transfer it in to their company rather than an AJ Bell SIPP which we wanted to do.

RoadToRiches

If they say no you are free to pay it into your own SIPP via a intermediary who is accepting insistent clients acting against advice. But agree this is a con, going through process and advisor ignores my comment about having no dependents and partner and produces a like for like based on me having a partner to make his report look good for telling me no.  Well they only did themselves out of controlling my pension at extortionate fees when I look back on it compared to SIPP

RoadToRiches

Also They will insist if it’s a yes to control the money themselves and / or pay it into your active workplace pension which you cannot move out off cause if you do it closes the pension then you miss out on employer contributions 

LEP

RoadToRiches said:

If they say no you are free to pay it into your own SIPP via a intermediary who is accepting insistent clients acting against advice. But agree this is a con, going through process and advisor ignores my comment about having no dependents and partner and produces a like for like based on me having a partner to make his report look good for telling me no.  Well they only did themselves out of controlling my pension at extortionate fees when I look back on it compared to SIPP

Is this definitely true? I was told no one would accept the the 'funds' if you went against the advice.

I want to transfer my DB pension to a DC scheme (I spent plenty of time crunching the figures based on my 'wants' and it makes perfect sense to me) but am put off by having to pay thosuands for 'advice' which comes back as don't do it and I effectively lose that money. I shopped around and the cheapest fee was around £5k.

RoadToRiches

Yes I am aware of one provider that as of now will accept insistent clients.  I don’t know how long for though cause they could do a AJ Bell at any moment. 

Pablo7474

I am not sure there is a provider and if there is it is a gamble as they could change their stance whilst someone is mid process. 

Diplodicus

RoadToRiches said:

Yes I am aware of one provider that as of now will accept insistent clients.  I don’t know how long for though cause they could do a AJ Bell at any moment. 

We're all ears.