Gaining control over my pension

DeadlyD

xylophone said:

Then, to sum up the position as discussed in previous posts;-

You've had an informal discussion with SJP (manager of your SIPP) and there was an indication that you would not receive a positive recommendation that would enable the transfer  in of  your DB pension.

You've had a discussion with IFA number one who has offered abridged advice for free and full advice for £3000 - he  can act  for you (or is willing to act) for you in a transfer to L&G (or presumably elsewhere) only if his recommendation is positive.

You've had a discussion with IFA number 2 ( fee £7000) who is prepared to act for you by outsourcing the regulated advice to a PTS and then, should the advice be against a transfer, by acting as an intermediary (thereby taking full responsibility and liability) between you and ipensions who  would open a SIPP to receive the transfer in of your DB pension.

If you decide not to explore the transfer out any further, there may be other options as discussed in this thread?

https://forums.moneysavingexpert.com/discussion/comment/78652611/#Comment_78652611

https://forums.moneysavingexpert.com/discussion/comment/78651395/#Comment_78651395

Yes that’s all correct thank Xylophone. I would add though that I would not be in position I had expected by having the flexibility of managing my own DB taken away from me. Although agree with more rigour round the process it’s taken away the freedom of transfer away from me and the lifestyle I have worked towards. Seems I am late to the party as opposed to my peers who are managing their final salary schemes successfully having transferred with ease. 

xylophone

Yes that’s all correct thank Xylophone. I would add though that I would not be in position I had expected by having the flexibility of managing my own DB taken away from me. Although agree with more rigour round the process it’s taken away the freedom of transfer away from me and the lifestyle I have worked towards. Seems I am late to the party as opposed to my peers who are managing their final salary schemes successfully having transferred with ease. 

It appears that (assuming IFA number 2 can guarantee the acceptance of the DB transfer), the option is there for you?

With regard to managing your own pension, presumably you could transfer out of the ipensions SIPP into your SJP SIPP?

You could even consider a different provider for both SIPPS?

Once you have left your current employer you could even consider transferring the L&G to the SIPP?

Or holding all pensions with L&G etc etc.

Do remember the MPAA if you opt to take income from a DC pension.  If you were to return to work at any point and join another DC pension scheme, the amount that could be contributed would be capped.

Other points concerning lifestyle etc, let's suppose for argument's sake that you did end up with a DIY SIPP holding say £300,000 plus.

Let's say you left your job, took the 25% PCLS and paid off your mortgage/ titivated the house etc.

You are now in the position to care for your elderly parents (and in connection with this, I would say that the more time you appear to have, the more  demanding (in the nicest possible way)  your parents may become).

You appear to be accustomed to a life with two full time salaries (one of which is in the higher tax bracket).  How far are you prepared to adapt your lifestyle? If you aren't, then with two teenagers at an expensive time of life and a period of high inflation coming, what seems like a generous sum remaining in the pension could very quickly be dissipated.

Food for thought......?

Let us know how you go on.

DeadlyD

xylophone said:

It appears that (assuming IFA number 2 can guarantee the acceptance of the DB transfer), the option is there for you?

With regard to managing your own pension, presumably you could transfer out of the ipensions SIPP into your SJP SIPP?

You could even consider a different provider for both SIPPS?

Once you have left your current employer you could even consider transferring the L&G to the SIPP?

Or holding all pensions with L&G etc etc.

Do remember the MPAA if you opt to take income from a DC pension.  If you were to return to work at any point and join another DC pension scheme, the amount that could be contributed would be capped.

Other points concerning lifestyle etc, let's suppose for argument's sake that you did end up with a DIY SIPP holding say £300,000 plus.

Let's say you left your job, took the 25% PCLS and paid off your mortgage/ titivated the house etc.

You are now in the position to care for your elderly parents (and in connection with this, I would say that the more time you appear to have, the more  demanding (in the nicest possible way)  your parents may become).

You appear to be accustomed to a life with two full time salaries (one of which is in the higher tax bracket).  How far are you prepared to adapt your lifestyle? If you aren't, then with two teenagers at an expensive time of life and a period of high inflation coming, what seems like a generous sum remaining in the pension could very quickly be dissipated.

Food for thought......?

Let us know how you go on.

Yes absolutely spot on. But regarding my high salary, I’ve had the benefit if that to invest in renovating a house which I now don’t need that level of income for. I would work part time a some point when I’ve retrained which I would be able to with a drawdown option. 

I’m concerned about IFA 2 option though and the Ipension fund, I don’t want to make a bad decision on the fund just to take advantage of the transfer. 

xylophone

I’m concerned about IFA 2 option though and the Ipension fund, I don’t want to make a bad decision on the fund just to take advantage of the transfer

Do you mean that you do not like the idea of a transfer to the SIPP offered by ipensions?

Had you discussed the option of transferring from the ipensions SIPP to another of your choosing if it turned out that having transferred to that SIPP, you were unhappy with the structure/fees/ investment choices etc and wished to go elsewhere?

DeadlyD

xylophone 

Do you mean that you do not like the idea of a transfer to the SIPP offered by ipensions?

Had you discussed the option of transferring from the ipensions SIPP to another of your choosing if it turned out that having transferred to that SIPP, you were unhappy with the structure/fees/ investment choices etc and wished to go elsewhere?

Yes that’s correct. I did ask IFA2 response was it would cost £500 but they would have to write a suitability report which in reflection I should investigate further as to what that means 

xylophone

they would have to write a suitability report 

Why is this?

DeadlyD

That’s what I don’t know.. this is what he said below 

Exit penalty is £500.There would be no other penalties.

 

I could help you move to a different SIPP, however, I would need to demonstrate/justify this via a suitability report and provide good reasons.

Diplodicus

What a terrible process the biddable client with a DB pension to transfer has now to assay.

Commiserations, DeadlyD.  There is no easy way out.  

xylophone

I could help you move to a different SIPP, however, I would need to demonstrate/justify this via a suitability report and provide good reasons.

You would not need advice to transfer from  a  DC pension  with no safeguarded benefits to another  such such pension (although there are pension providers who will only do business through an adviser).

However, DIY SIPP platforms do not operate on this basis.

See  https://www.moneysavingexpert.com/savings/cheap-sipps/

DeadlyD

You would not need advice to transfer from  a  DC pension  with no safeguarded benefits to another  such such pension (although there are pension providers who will only do business through an adviser).

However, DIY SIPP platforms do not operate on this basis.

See  https://www.moneysavingexpert.com/savings/cheap-sipps/

Are you saying that I should be able to transfer for the Ipension fund without the IFA being involved? He’s clearly saying he needs to write a report to allow me to gain approval to do this. This is what is alarming me.