DB Pension Transfer Advice

DaveT55

RoadToRiches said:

arty688 said:

"You are right. It doesn't have to be expensive.  Around £3500 per scheme would be fine."

sounds like £3.5 is not considered a lot of money by IFA's 

"If you think DB pensions and transfers are so easy and profitable, why do so few do them?"

didn't say they were just said I didn't see why they have to be.
but as £3.5k is not considered a lot of money maybe we also have a different definition of profitable?

Mine cost me nearly 10K in total so this is a very good deal.  Also going against advice fee is payable regardless of outcome and as it's negative it comes out of your own pocket and not the pension fund as it would have done if they were managing the pot.

Definitely still worth it at a10K personal cost. 

xylophone

Maybe £10k isn't much either ?

On a CETV of £31,000, it's a lot.

On a CETV of £500,000.........not so much.

xylophone

I am pretty certain they would refuse to carry out the transfer and I would then be in a debate with an ombudsman about a legal obligation on transfers under this pension option.  

Opening the stakeholder would cost very little so there's very little to lose?

arty688

xylophone said:

Maybe £10k isn't much either ?

On a CETV of £31,000, it's a lot.

On a CETV of £500,000.........not so much.

disagree £10k is a lot of money % changes but still a lot of money.

xylophone

disagree £10k is a lot of money % changes but still a lot of money.

I think it's all relative to the situation of the person concerned.

I saw your post about your state pension forecast.

https://forums.moneysavingexpert.com/discussion/comment/78546651/#Comment_78546651

Does it also say

If you’re working you may still need to pay National Insurance contributions until ................as they fund other state benefits and the NHS."

What was the COPE figure shown?

arty688

Contracted Out Pension Equivalent (COPE)

Your COPE estimate is£45.89 a week.

This will not affect your State Pension forecast. The COPE amount is paid as part of your other pension schemes, not by the government.

In most cases the private pension scheme you were contracted out to:

• will include an amount equal to the COPE amount
• may not individually identify the COPE amount

The total amount of pension paid by your workplace or personal pension schemes will depend on the scheme and on any investment choices.

Obviously I have no idea what they are on about

arty688

"If you’re working you may still need to pay National Insurance contributions until ................as they fund other state benefits and the NHS."

is that even a choice I can make if I wanted not to pay it.

MallyGirl

if you earn, you pay NI (until 75). You can't opt out

dunstonh

sounds like £3.5 is not considered a lot of money by IFA's 

Its not for what is probably the highest risk part of their business.  One that can force the business to close and creates the most costs to the business (that they suffer each and every year forever even though the £3500 was a one off).

I actually think £3500 is too cheap.  £5000 is more reasonable for the reality of the current situation.  But you would need to run a business to understand charges and costs.  A lot of people do not understand that the money paid is not pure profit.

didn't say they were just said I didn't see why they have to be.
but as £3.5k is not considered a lot of money maybe we also have a different definition of profitable?

But that is probably due to you not understanding or being aware of the risks and consequences.

How much do you think that a transaction that could bankrupt you and is automatically considered bad advice unless proven otherwise should cost?  (remember to consider the cost of the FCA checking the case and almost certainly finding fault. And the FOS with their inconsistent and changeable views more likely to uphold a complaint than reject it regardless of how good you think the advice is - one PI insurer told me last year that they pretty much expected most DB complaints to be upheld by the FOS).  And cost in 25-30 hours of chartered level adviser time.   And factor in the annual cost you will pay on that DB case long after the client has paid their fee (which some advisers will need to pay until the day they die and in some cases until both they and their spouse are dead).

arty688

As I have said before its the risk to the advisor which makes it expensive not the actual getting the numbers. Basically it would be a lot easier for everyone if the transfer of DB pension was band.


Out of interest are there any cases where negative advise has been been put in front of the FCA and upheld?