Transfer of DB Pension Pot to a SIPP via a Stakeholder Pension

JustRetiring

I have a question regarding the problematic issue of getting acces to the benefits accrued in a DB pension pot.

I am close to my early retirement target of 60 and have a £400K CETV pot in a deferred Defined Benefit Scheme.
I wish to invest this and live off the interest until my State Pension kicks in at 67.

However, in the current market I cannot get a Independent Financial Advisor (IFA) to recommend this.
So though I can fulfil the requirement of the DB Scheme of getting advice, I cannot find a receiving Pension Scheme that will accept an unrecommended transfer.
I have tried the "insistent client" route but to no avail.
I have look at various SIPP and Personal Pension providers with no luck.

However, I was advised that Stakeholder Pension MUST accept any transfers, and therefore can ignore the IFAs recommendation.
This is even for personal stakeholder pensions.

Does anyone have any expereince of using this way out of the "DB lockin" conundrum?

QrizB

It's been discussed many times but as far as I can tell no-one has actually tried it recently and then reported back.

Do you already have a Stakeholder Pension? If not, that's the first hurdle.

Dazed_and_C0nfused

I wish to invest this and live off the interest until my State Pension kicks in at 67.

What investments will you be using that generate interest?

Are you concerned about the potential inflation risk from going down this route?

Or do you mean something else?

JustRetiring

Dazed_and_C0nfused said:

I wish to invest this and live off the interest until my State Pension kicks in at 67.

What investments will you be using that generate interest?

Are you concerned about the potential inflation risk from going down this route?

Or do you mean something else?

Sorry - poor phrasing.  I mean growth of 5% that I will drawdown each month.  

JustRetiring

QrizB said:

It's been discussed many times but as far as I can tell no-one has actually tried it recently and then reported back.

Do you already have a Stakeholder Pension? If not, that's the first hurdle.

Not yet, was hoping to see someone with a positive experience here first.
Also, I would be using the Stakeholder Pension as a stepping stone to a better scheme with more investment and cheaer charges.

german_keeper

JustRetiring said:

Dazed_and_C0nfused said:

I wish to invest this and live off the interest until my State Pension kicks in at 67.

What investments will you be using that generate interest?

Are you concerned about the potential inflation risk from going down this route?

Or do you mean something else?

Sorry - poor phrasing.  I mean growth of 5% that I will drawdown each month.  

I wonder if you could let me know where you are going to get this 5% growth every month. We are very fortunate that the vast majority of our pension provision is DB/State Pension. But we do have some DC provision so 5% would be an absolute godsend. Even if inflation went through the roof I am sure 5% on our DC would see us very comfortable. Or maybe it's not guaranteed.

Apologies I do admit this post is a bit tongue in cheek.

xylophone

The stakeholder pension route has been discussed many times.

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/transfer-pension-scheme/

However, although most schemes provide the right to transfer, not every scheme has to accept an incoming transfer.

A stakeholder pension scheme is currently the only type of scheme which must accept any transfer from another registered pension scheme.

However, see

https://forums.moneysavingexpert.com/discussion/comment/78656104/#Comment_78656104

I was doing some late night browsing, remembered that the Pru's knowledge library had long said stakeholders had to accept all transfers................They have confirmed that they accept DB transfers for existing stakeholder customers 

In other words, as a new client, you would not be able to open and then use a stakeholder for the purpose of an "insistent" transfer.

There were discussions around the Aviva and Standard Life stakeholders but .......

https://forums.moneysavingexpert.com/discussion/6273646/db-transfer

dunstonh

However, I was advised that Stakeholder Pension MUST accept any transfers, and therefore can ignore the IFAs recommendation.
This is even for personal stakeholder pensions.

The problem you have is that whilst stakeholder pensions theoretically have to accept DB transfers, the distribution company retailing the stakeholder pension does not.

When we last looked at it on the board, I think we were down to 4 companies left that offer stakeholder and three of them via their in-house sales-force (so intermediary basis and therefore can refuse DB transfers).  The other didn't seem to have any way to apply for it and only seemed to be open on paper, not in reality.  

xylophone

Another poster tried another route but didn't come back to say what happened in the end.

https://forums.moneysavingexpert.com/discussion/comment/78679082/#Comment_78679082 and following posts.

Thrugelmir

JustRetiring said:

Dazed_and_C0nfused said:

I wish to invest this and live off the interest until my State Pension kicks in at 67.

What investments will you be using that generate interest?

Are you concerned about the potential inflation risk from going down this route?

Or do you mean something else?

Sorry - poor phrasing.  I mean growth of 5% that I will drawdown each month.  

Where are you proposing to invest to generate a guaranteed 5% return? 

rjmachin

I am presuming JustRetiring means a 5% annual growth, and drawing down that annually, but split into monthly chunks

So, hoping for £20,000 growth per year (on £400k pot), taking £1666 per month?