DB Pension Transfer Advice

DaveT55

Hi,

I transferred my DB pension around 12 months ago and the process was relatively straight forward. I was 38 years old and I was informed before I even started the process that I would receive negative advice based solely on age. I had already fully investigated the risks and for me the Pros of an early retirement without penalties, the opportunity to leave savings to my wife and children, plus an excellent CETV meant i was going to transfer whatever the advice. On an insistent client basis the money was transferred to AJ Bell with all paperwork completed by the advisor. To date this pot has grown by 10% and I am more than happy that my decision was the correct one and I have 20 more years to hopefully grow this. 

In the last 2 months my wife's final salary pension has been deferred and we are wanting to go down a similar route. The landscape has clearly changed considerably. We have opted to pay for advice, which will be several thousand pounds and given that "insistent client basis' is no longer accepted at AJ Bell, or anywhere else it seems, we need to try and ensure that the advise we receive from the financial advisor is positive, or it is unlikely any transfer will be possible ( I know stakeholder pensions have been mentioned in other posts, but not sure anyone has done this for a DB and obviously adds complication).

I believe receiving positive advice will be a difficult task based on our age and the standard list of positives for DB pensions that advisors routinely quote. I think the fact the pension advisor will receive the full amount on negative or positive advice also doesn't work in our favour with the increase of 'no win no fee 'claims against transfer advise. we are left trying to make the most comprehensive case to receive a positive recommendation for transfer. I have read a few articles that longer term investment planning in farming or property can be a positive factor for moving out of a DB along with wanting investments in suitably ethical funds rather than the standard investments under a  company DB. 

Can people advise what other factors can be used to receive a positive transfer outcome? I obviously don't want to deliberately lie to the advisor, but unfortunately it seem like people are being left with very little options when they are clear on the route they want to take. 

I would appreciate if people wouldn't leave any advice on pro's of DB pensions and guaranteed income etc. I have read all about it on other posts and went through it all 12 months ago. 

Thanks in Advance 

      

dunstonh

To date this pot has grown by 10% and I am more than happy that my decision was the correct one and I have 20 more years to hopefully grow this. 

10% was in a good year.  Remember you will get negative years and nothing years and you need to average them out.  

I believe receiving positive advice will be a difficult task based on our age and the standard list of positives for DB pensions that advisors routinely quote.

Some PI insurers restricted the advice based on age.   Some do not.   So, its a bit more shopping around with the advisers to find one that does not have the age issue.   That doesn't mean you would then get a recommendation to transfer.   It just means you will not get an automatic no.

 I have read a few articles that longer term investment planning in farming or property can be a positive factor for moving out of a DB along with wanting investments in suitably ethical funds rather than the standard investments under a  company DB. 

You are not invested in a DB scheme.  So, ethical is not a reason.

DaveT55

 I have read a few articles that longer term investment planning in farming or property can be a positive factor for moving out of a DB along with wanting investments in suitably ethical funds rather than the standard investments under a  company DB. 

You are not invested in a DB scheme.  So, ethical is not a reason.

But if the DB scheme is an oil company and we have suddenly developed a conscience and a desire to move away from fossil fuels, is this not a reason?

Albermarle

Can people advise what other factors can be used to receive a positive transfer outcome? I

I think that evidence of other secure income sources can help . So probably if you had not cashed in your DB, she would more likely get a positive recommendation . I guess that does not help but just using it as an example. 

I would appreciate if people wouldn't leave any advice on pro's of DB pensions and guaranteed income etc. I have read all about it on other posts and went through it all 12 months ago. 

That is fair enough, most of us are also fed up with the stream of threads and posts on this question. However cashing in two DB pensions is pretty unusual . Having one DC pot and one Db in the family is usually seen as the sweet spot.

RoadToRiches

As of today there is one accepting insistent clients, cannot say for certain they will be further down the line though.  Awaiting payout myself hopefully end of the week / next week it should land. :-)

DaveT55

RoadToRiches said:

As of today there is one accepting insistent clients, cannot say for certain they will be further down the line though.  Awaiting payout myself hopefully end of the week / next week it should land. :-)

RoadToRiches - Yes we have been reading your previous thread and are really interested in finding out who this is. We have had to payout a significant amount for advice that may turn out to be negative and with AJ Bell no longer offering this service it leaves us nowhere to go. Shocked at how ludicrous this whole process is becoming.

MallyGirl

It will be interesting to see. My multiplier on my very small (won't cover the fuel bill) FS pension has always been pretty high and I expected it would be worth transferring just to get things in one place - then the pension was migrated to Barnett Waddingham. 6 months on and they still haven't managed to implement the website to match what the old one told me, nor have they followed through on the up to date valuation as a stopgap for the lack of website. By the time they do sort it I expect all doors to be shut unless RTR has found an option.

Dale72

Hi, just finished transferring to AJ Bell (I think I was the last). After my advisor had given me the expected no we discussed things, and he told me my age was not an issue, which I was surprised by, and that even if I had left it till 55 the answer would still have been the same. Seemingly far more important was some figure I plucked out of the air at the start of the process as to what my ideal retirement income would be. Very cunning of him as I gave a high figure hoping to persuade him that the only way I would achieve this would be to invest in the market, instead he said that he couldn't possibly advise a transfer as the guarenteed pension would go at least some way (not much) in making up my ideal income. 

So my advice would be when you fill in your initial questionnaire, make sure the figures show that all your retirement needs will be met without needing to keep the DB scheme, even if that means massaging the figures a little.

NoMore

RoadToRiches said:

As of today there is one accepting insistent clients, cannot say for certain they will be further down the line though.  Awaiting payout myself hopefully end of the week / next week it should land. :-)

There you go !!!!!! teasing again.

Pablo7474

RoadToRiches said:

As of today there is one accepting insistent clients, cannot say for certain they will be further down the line though.  Awaiting payout myself hopefully end of the week / next week it should land. :-)

Disneyland? Neverland? All good fiction 😂

Thrugelmir

DaveT55 said:

 I have read a few articles that longer term investment planning in farming or property can be a positive factor for moving out of a DB along with wanting investments in suitably ethical funds rather than the standard investments under a  company DB. 

You are not invested in a DB scheme.  So, ethical is not a reason.

But if the DB scheme is an oil company and we have suddenly developed a conscience and a desire to move away from fossil fuels, is this not a reason?

The DB scheme is not an oil company. That's a certainty.