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

Albermarle

theronkinator said:

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.

There is a triage system operated by some of the advisors . A lower charge to do a more simple check of whether it is worth progressing to a full check .
Otherwise Fidelity charge £4K for the first one and £1K for additional ones . Not clear what happens if the recommendation is negative . If positive they want to manage the pension I think.

AJ Bell will no longer accept transfers with a negative recommendation 

It is clearly not a scam, although there maybe some profiteering going on   . It is an unintended consequence of the pension freedom legislation and some dodgy transfers /dealings in the past.
What it is though , is an issue with no obvious solution .

As mentioned numerous times in all the numerous threads on the same subject . Such as Db pension transfer advice/suitability report. — MoneySavingExpert Forum

RoadToRiches

Diplodicus said:

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.

I am waiting for my pot to clear in next few weeks with them waiting on old employer to send funds to them, once it lands I’ll let you know but they have agreed to accept it. :-)

dunstonh

Second, it is highly likely that the advice would be negative

That is just a myth that certain people put out here but its not backed up with the data.   

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

The PI insurance is for advice.   The PI insurers count the cases where advice is given.  So, whether it is to transfer or to stay put, the advice is still given.    The PI insurers also charge for that piece of advice every year for as long as the company is in existence.  So, whilst it is a one-off cost for you, it is an annual cost for the advice firm.

 It's essentially a scam with uncapped fees, offer the service, say no to everyone and print money with no risk.

Yet the data on DB transfer advice shows the advice to recommend transfer out is back where its long term average is.   

If it is so profitable, why is it that fewer than 1 in 10 advisers do DB transfers?

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.

That could be down to two reasons.  (and only applies if the advice is to transfer the pension)
1) the company you are speaking to is an FA and not an IFA.
2) Self directed investors that have never invested before are higher risk from a liability point of view.    They may have decided that they dont want to deal with people like that.