DB transfer very high multiple

Direbus

I am 59 and looking to transfer 2 DB pension away from Lloyds Bank to another pension company.

transfers allowed in final year, so i have 12 months to process this.

The projected pension next year is £2350 PA my CETV is £157,500 so over 67x. I am waiting for the second CETV on the other pension paying £2850 PA. 3% annual increase in scheme

I have ongoing health issues ( Diabetes type 2 and previous heart attack ) and wish to be able to pass on the new pension to my adult children.

I have contacted lots of local IFAs and they all seem to push the advice to Pension works or pensionHome at 2.5% - 3% fee, which i can agree to.

If I get the clearance to transfer to a new pension, what fees should I expect from an IFA to arrange and set up the new pensions?

I expect to continue working till 65 so no plans to retire till 65. I have other DC pensions valued at 300k and a small buy to let portfolio generating income, so see no reason for the transfer answer being no, preventing the transfer.

I really don't want to go to SJP or TruePotentail who both seem very confident they can do it for me....

I just want to find an IFA thats not going to rip me off fee wise.

dunstonh

If I get the clearance to transfer to a new pension, what fees should I expect from an IFA to arrange and set up the new pensions?

Probably included in the fee quoted and not additional.  Although some firms will break down the stages of the process.

Direbus

It appears that IFAs sub contracting the advice fee to Pension works . Pension home then want their fee on top.

Id really like to find an IFA that does not outsource the transfer advice.. 

If anyone knows one that they are happy with, please let me know.

Albermarle

The projected pension next year is £2350 PA my CETV is £157,500 so over 67x. I

This seems an extremely high multiple , almost double normal .  Are you sure the projected pension includes all the inflationary increases from when you left the company ?

Or is it the figure you were given when you left the company some years ago ?

I just ask as it is a common mistake we see on the forum regularly.

Direbus

No the £2350 is the up to date figure.. The left company figure was just over £1100

Pablo7474

Does GMP come into payment at a later date (GMP age)? Would be interesting to know what your statement says. 

Albermarle

Once you get a positive recommendation ( and it sounds like you would ), I do not think there would be anything stopping you arranging a transfer yourself into one of your existing DC schemes ( or even a new one ) ? Most are happy to accept a DB transfer with a positive recommendation .

Direbus

Pablo7474 said:

Does GMP come into payment at a later date (GMP age)? Would be interesting to know what your statement says. 

The annual pension decreases by  £213 PA from state pension age

xylophone

With regard to finding a pension transfer specialist, you could try

https://adviserbook.co.uk/

and tick "confirmed independent" and "pension transfer" when the menu comes up.

xylophone

Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

With regard to the SPD

https://www.lloydsbankinggrouppensions.com/scheme_benefits/retirement_benefits

The State Pension Deduction is a deduction that may be made to your Scheme pension to take account of entitlement to a State Pension. It will only apply if you joined the Scheme after June 1974 and you’ll be contacted if this applies to you. The State Pension Deduction is calculated using your pensionable service up to 31 March 1997 and fixed when you actually leave the Scheme, based on the level of Basic State Pension applicable at the time. It applies from your State Pension age.

With regard to GMP, when you left service (after two periods of employment with Lloyds?), were you given statements of deferred benefits showing  pre 88 GMP/post 88 GMP/excess?

PinkPanda_3

Hi

It would be worth investigating or getting guidance on the gmp element if you have not already. I also have a defined benefit cetv showing current  value of approx 2400pa with a cetv at 185k
Having spoken to an advisor there is a gmp calculation that is only done at nra which for me is in 4 years. It is not clear from the figures in the quote, but at that point an element is recalculated for the whole period since I left the scheme. I was told the payment then will be revised to 6400pa, but it does not show that or make it clear anywhere in my cetv documents.