DB Pension transfer..a no brainer?

Prism

Diplodicus said:

There is a natural inclination for some of the forum's riper cheeses to protect their status - and the thousand hours they spent on here - indicating the rest need their help.

Not everyone can have your luck though

Diplodicus

Prism said:

Diplodicus said:

There is a natural inclination for some of the forum's riper cheeses to protect their status - and the thousand hours they spent on here - indicating the rest need their help.

Not everyone can have your luck though

Even the way you couch that sentence highlights the unhelpful block facing most readers reading the prevailing advice on this forum.
Unlike the tax-break, there is no guaranteed win with investment. There is no way around that, even if you pay an IFA to hold your hand for the rest of your journey.

Linton

grocerjack said:

Linton said:

grocerjack said:

eskbanker said:

grocerjack said:
Investment at medium risk started in July 2020 and has returned around 9% so far. That is exeptional and I know it won't return this every year

An incidental point to the thrust of the overall post, but I wouldn't describe that as exceptional - that's about 6.7% annualised growth, which isn't abnormal at all for a medium risk investment....


In terms of your initial comment about negativity to transferring, OP made an almost completely unsupported remark that it would be a no-brainer, and asked for what they might be missing, so posters have contributed factors that need to be included in the evaluation, as this board is littered with examples of posters who've been seduced by apparently huge CETVs, without being aware of how to make a realistic like-for-like comparison.

There are also many threads discussing the difficulty of obtaining an IFA recommendation or transferring against advice, which is a situation that has changed significantly since you went through the process....

Is that what they are now calling an 'insistent client' - someone who wants to transfer even if advised not to. I understand what the posters are doing, and it's fair to outline the potential pitfalls, but I do think the whole subject tends to be heavily aganst transferring out and the positives are often overlooked.

The FCA state that the default assumption should be that transfer is not recommended.  Therefore I cant see it is an appropriate role for this forum to give someone who doesnt know why they want to transfer reasons for doing so.  That they dont know is surely prima facie evidence that they should not.

In my view it is right that the whole system is heavily against transferring out.  The irreversible risk to the transferee's future is so great that the reasons for doing so should be convincing and genuine.

'Role'? The role of the forum is a balanced debate on the question. Not a one sided barrage of naysayers.My views are perfectly adequate and my transfer out secures the fund if anything happens to me and my partner, for my children. I have used reputable IFA and `transact are a very reputable fund managemengt organisation. You don't get to decide what is appropruate.

I am sorry if you see my comments as a criticism of what you chose to do. You clearly did your homework and knew exactly why you wanted to transfer and why it was appropriate for your situation. You then went through the process in the way intended, found a very good IFA who supported you and reached a satisfactory conclusion. That is great, that is what is meant to happen.

This is a very different attitude to some contributors on this topic who appear to only see £££s and regard the process as an obstacle to a DB pension owner getting their hands on £££s. I think it would be irresponsible to encourage people who do not give a well considered reason for transferring and do not show they have an understanding of what is involved in managing sums of perhaps £1M get around the intentions of the transfer process.

The FCAs approach of considering the default to be not to transfer with the onus on the db owner to prove their case seems sensible to me.

Sadly forums like this are sometimes not the best places for reasoned debate. Reasoned debate is not a contest to see who can shout the loudest or browbeat those who disagree with them into submission with personal attacks.

Mick70

does the DB rise with rpi ?
growing trend for people wanting to cash in 
set up a spreadsheet showing your annual DB pension over 25 years , rising say 2.5% pa (this yr would be 5%) and then add all those years up and see what the total is for GUARANTEED stress free income (and any lump sum)

Parking_Trouble

Diplodicus said:

Did you read the OP, cloud dog? 

OP
Approaching 60. £60k in a SIPP. £1m CETV offer. No dependents.
Seeking support that a transfer out is a 'No Brainer'

2nd post
The projected pension is roughly £24k pa
Thinks they are approaching LTA

3rd post
Previous recommendation was not to transfer for several reasons stated.
Throws up some options of what to do.
Wants control of 'their' money (but includes options not to transfer out)

Overall, lacking any clarity of needs or plans so likely to have further recommendation not to transfer out.

Meanwhile the usual tension between the polemicists comes to the surface and the thread goes off track in the absence of the OP providing the information needed to help make the right decision.

Thrugelmir

Parking_Trouble said:

Diplodicus said:

Did you read the OP, cloud dog? 

OP
Approaching 60. £60k in a SIPP. £1m CETV offer. No dependents.
Seeking support that a transfer out is a 'No Brainer'

2nd post
The projected pension is roughly £24k pa
Thinks they are approaching LTA

3rd post
Previous recommendation was not to transfer for several reasons stated.
Throws up some options of what to do.
Wants control of 'their' money (but includes options not to transfer out)

Overall, lacking any clarity of needs or plans so likely to have further recommendation not to transfer out.

Meanwhile the usual tension between the polemicists comes to the surface and the thread goes off track in the absence of the OP providing the information needed to help make the right decision.

Most importantly the OP is still working and contributing to the scheme. Also asks a similar question every year. 

cloud_dog

Parking_Trouble said:

Diplodicus said:

Did you read the OP, cloud dog? 

OP
Approaching 60. £60k in a SIPP. £1m CETV offer. No dependents.
Seeking support that a transfer out is a 'No Brainer'

2nd post
The projected pension is roughly £24k pa
Thinks they are approaching LTA

3rd post
Previous recommendation was not to transfer for several reasons stated.
Throws up some options of what to do.
Wants control of 'their' money (but includes options not to transfer out)

Overall, lacking any clarity of needs or plans so likely to have further recommendation not to transfer out.

Meanwhile the usual tension between the polemicists comes to the surface and the thread goes off track in the absence of the OP providing the information needed to help make the right decision.

My post wasn't targeted towards the OP, as I would have referred, quoted, or tagged them.  It was just a general comment, which may not be of interest to some (I think I may have mentioned that), for the broad spectrum of people who may come across this thread and may only be focused on getting their hands on the pretty shiny stuff and just 'want their money' (sic).

Parking_Trouble

cloud_dog said:

Parking_Trouble said:

Diplodicus said:

Did you read the OP, cloud dog? 

OP
Approaching 60. £60k in a SIPP. £1m CETV offer. No dependents.
Seeking support that a transfer out is a 'No Brainer'

2nd post
The projected pension is roughly £24k pa
Thinks they are approaching LTA

3rd post
Previous recommendation was not to transfer for several reasons stated.
Throws up some options of what to do.
Wants control of 'their' money (but includes options not to transfer out)

Overall, lacking any clarity of needs or plans so likely to have further recommendation not to transfer out.

Meanwhile the usual tension between the polemicists comes to the surface and the thread goes off track in the absence of the OP providing the information needed to help make the right decision.

My post wasn't targeted towards the OP, as I would have referred, quoted, or tagged them.  It was just a general comment, which may not be of interest to some (I think I may have mentioned that), for the broad spectrum of people who may come across this thread and may only be focused on getting their hands on the pretty shiny stuff and just 'want their money' (sic).

Ah! My post wasn't aimed at you. It was intended to point out the lack of detail in the OP. Not much in there for @diplodicus to raise the question.

I agree with all you said and I took a similar route with my pension for pretty much the same reasons.

Parking_Trouble

Thrugelmir said:

Parking_Trouble said:

Diplodicus said:

Did you read the OP, cloud dog? 

OP
Approaching 60. £60k in a SIPP. £1m CETV offer. No dependents.
Seeking support that a transfer out is a 'No Brainer'

2nd post
The projected pension is roughly £24k pa
Thinks they are approaching LTA

3rd post
Previous recommendation was not to transfer for several reasons stated.
Throws up some options of what to do.
Wants control of 'their' money (but includes options not to transfer out)

Overall, lacking any clarity of needs or plans so likely to have further recommendation not to transfer out.

Meanwhile the usual tension between the polemicists comes to the surface and the thread goes off track in the absence of the OP providing the information needed to help make the right decision.

Most importantly the OP is still working and contributing to the scheme. Also asks a similar question every year. 

Strange that the OP has presumably paid an IFA and couldn't come up with a plan or reasons why they wanted to transfer.

Still no plans, desires or needs by the look of it.

Could have made up some plans to leave work ASAP and travel the world in first class for a few years to justify the need to access a lot of money in the early years of retirement.

Thrugelmir

Parking_Trouble said:

Thrugelmir said:

Parking_Trouble said:

Diplodicus said:

Did you read the OP, cloud dog? 

OP
Approaching 60. £60k in a SIPP. £1m CETV offer. No dependents.
Seeking support that a transfer out is a 'No Brainer'

2nd post
The projected pension is roughly £24k pa
Thinks they are approaching LTA

3rd post
Previous recommendation was not to transfer for several reasons stated.
Throws up some options of what to do.
Wants control of 'their' money (but includes options not to transfer out)

Overall, lacking any clarity of needs or plans so likely to have further recommendation not to transfer out.

Meanwhile the usual tension between the polemicists comes to the surface and the thread goes off track in the absence of the OP providing the information needed to help make the right decision.

Most importantly the OP is still working and contributing to the scheme. Also asks a similar question every year. 

Strange that the OP has presumably paid an IFA and couldn't come up with a plan or reasons why they wanted to transfer.

Still no plans, desires or needs by the look of it.

Could have made up some plans to leave work ASAP and travel the world in first class for a few years to justify the need to access a lot of money in the early years of retirement.

Investing ones own money these days has been made so easy what could possibly go wrong? You only get one bite of the cherry.  Make the wrong call though and the outcome could be life changing.