Transfer DB pension

TransferDB

I am new here and any advise would be welcome. I am 64 and have recently been diagnosed with prostate cancer - am having treatment and as yet have no full knowledge of the extent of the cancer or my life expectancy. I have a DB pension (transfer value £172k) but the death benefits do not cover my needs to pass on the fund in full to my family so am looking at a transfer.
I have spoken to 2-3 IFA's but the cost is about 3% of all my 5 pension pots (about £7k) and one stated that if it failed I'd still have to pay in full. How can that be fair or right? 
My partner has a good NHS pension and doesn't need to have mine (or just a part of it) but my two sons would benefit if I died. One of the firms said they would not take on my transfer due to high insurance costs.
I never expected that all this would be such a drama and it feels like the last thing I need right now! TBH it feels like an industry wide pensions transfer trick. 

Albermarle

TransferDB said:

I am new here and any advise would be welcome. I am 64 and have recently been diagnosed with prostate cancer - am having treatment and as yet have no full knowledge of the extent of the cancer or my life expectancy. I have a DB pension (transfer value £172k) but the death benefits do not cover my needs to pass on the fund in full to my family so am looking at a transfer.
I have spoken to 2-3 IFA's but the cost is about 3% of all my 5 pension pots (about £7k) and one stated that if it failed I'd still have to pay in full. How can that be fair or right? 
My partner has a good NHS pension and doesn't need to have mine (or just a part of it) but my two sons would benefit if I died. One of the firms said they would not take on my transfer due to high insurance costs.
I never expected that all this would be such a drama and it feels like the last thing I need right now! TBH it feels like an industry wide pensions transfer trick. 

This subject is discussed endlessly on this forum, so as a first step I suggest you settle down for a couple of hours and read through some of the more recent threads.

Pension has finally landed - As an insistent client acting against advice -*DOORS CLOSED 03/09/2021* — MoneySavingExpert Forum
DB transfer very high multiple — MoneySavingExpert Forum
Defined Benefit Transfer Value — MoneySavingExpert Forum
Who will accept a DB to SIPP transfer from "insistent client" — MoneySavingExpert Forum

TransferDB

Albermarle said:

TransferDB said:

I am new here and any advise would be welcome. I am 64 and have recently been diagnosed with prostate cancer - am having treatment and as yet have no full knowledge of the extent of the cancer or my life expectancy. I have a DB pension (transfer value £172k) but the death benefits do not cover my needs to pass on the fund in full to my family so am looking at a transfer.
I have spoken to 2-3 IFA's but the cost is about 3% of all my 5 pension pots (about £7k) and one stated that if it failed I'd still have to pay in full. How can that be fair or right? 
My partner has a good NHS pension and doesn't need to have mine (or just a part of it) but my two sons would benefit if I died. One of the firms said they would not take on my transfer due to high insurance costs.
I never expected that all this would be such a drama and it feels like the last thing I need right now! TBH it feels like an industry wide pensions transfer trick. 

This subject is discussed endlessly on this forum, so as a first step I suggest you settle down for a couple of hours and read through some of the more recent threads.

Pension has finally landed - As an insistent client acting against advice -*DOORS CLOSED 03/09/2021* — MoneySavingExpert Forum
DB transfer very high multiple — MoneySavingExpert Forum
Defined Benefit Transfer Value — MoneySavingExpert Forum
Who will accept a DB to SIPP transfer from "insistent client" — MoneySavingExpert Forum

Yes, reading over the weekend on here made me sign up to try for some help THANKS YOU ARE RIGHT

MallyGirl

TransferDB said:

I am new here and any advise would be welcome. I am 64 and have recently been diagnosed with prostate cancer - am having treatment and as yet have no full knowledge of the extent of the cancer or my life expectancy. I have a DB pension (transfer value £172k) but the death benefits do not cover my needs to pass on the fund in full to my family so am looking at a transfer.
I have spoken to 2-3 IFA's but the cost is about 3% of all my 5 pension pots (about £7k) and one stated that if it failed I'd still have to pay in full. How can that be fair or right? 
My partner has a good NHS pension and doesn't need to have mine (or just a part of it) but my two sons would benefit if I died. One of the firms said they would not take on my transfer due to high insurance costs.
I never expected that all this would be such a drama and it feels like the last thing I need right now! TBH it feels like an industry wide pensions transfer trick. 

Sadly this is unlikely to get more straightforward unless you get a diagnosis that the cancer treatment is not going well. If you have a short time left (hopefully that will not prove to be the case) then you are much more likely to get a positive transfer recommendation and then won't have all the hassle around being an insistent client. Without that then you will probably be in the same boat as everyone else. You have to pay for advice as the advisor will be doing the investigation work and contingent charging is not allowed. It would be just as much work to produce a negative recommendation as it would a positive.

TransferDB

You kind of lost me there - but what is "contingent charging" ? 

MallyGirl

Contingent charging means a client only pays for the advice if they go ahead with a transfer

In October 2020, a ban on contingent charging came into effect with a view to remove the conflicts of interest which arise when an adviser only gets paid if a transfer goes ahead.

Only consumers with certain identifiable circumstances, such as those suffering from serious ill-health or experiencing serious financial hardship, are exempt.

Diplodicus

MallyGirl said:

Contingent charging means a client only pays for the advice if they go ahead with a transfer

In October 2020, a ban on contingent charging came into effect with a view to remove the conflicts of interest which arise when an adviser only gets paid if a transfer goes ahead.

Only consumers with certain identifiable circumstances, such as those suffering from serious ill-health or experiencing serious financial hardship, are exempt.

I don't get it MallyGirl; please help me out: 

If clients are bound to consult a financial adviser, and their financial advisers are bound to give advice in the best interest of the client; why would contingent charging make any difference to the advice?

MallyGirl

I am not in the industry. I just read an article in the FT which said this:

https://www.ftadviser.com/pensions/2021/06/28/almost-70-of-contingent-charging-clients-transferred-db-pension/

Diplodicus

Fair enough.

TransferDB

MallyGirl said:

Contingent charging means a client only pays for the advice if they go ahead with a transfer

In October 2020, a ban on contingent charging came into effect with a view to remove the conflicts of interest which arise when an adviser only gets paid if a transfer goes ahead.

Only consumers with certain identifiable circumstances, such as those suffering from serious ill-health or experiencing serious financial hardship, are exempt.

Thank you, that probably means someone like me with cancer - is it worth me bringing this to the IFA's notice or might it sour things - I guess he would just say no or refuse to take it on? 

TransferDB

MallyGirl said:

I am not in the industry. I just read an article in the FT which said this:

That is actually very interesting THANK YOU so much