Defined Benefit Transfer Block by IFA

LindseyLula

I would be grateful for some advice please?

I would like to transfer my Deferred Defined Benefit Pension (private company) to a SIPP or similar at age 55 (I'm currently 53), I've received a very attractive CETV from my pension scheme (6 figures) and have sought independent financial advice (no fee at this stage). the problem I have is that the advice that I have received seems to be is erring on the side of the transfer not being recommended and if this happens I will be stuck with paying a considerable advice fee (£10k) to be told that I won't be able to transfer my pension. This seems ludicrous and is in complete contradiction to my (what I thought) pension freedoms. Is there anything you can advise/signpost me to?

One of the financial advisors that i have dealt with has indicated that there is an insistent claimant route (if it is recommended not to transfer), but in the end there is still a clause where I could in a position of not being able to transfer; this seems so unfair.

Any advice gratefully received.

Albermarle

You could read the numerous other threads on the same subject . Suggest you type 'DB Transfer ' in the search box at the top of the page and you should find plenty of bedtime reading on the subject.

marlot

This question comes up every week on here.  Have a look through this forum.

Do you have a reduced life expectancy?  Or some other reason why your DB pension is not a good fit for your needs?

LindseyLula

thanks I will trawl through the forum. I don't have a reduced life expectancy but desperately want to retire early/change my career to something less stressful. I have plenty in the post to keep me going for at least 30 years or so!! 

Albermarle

Starter for ten 
Tiny, almost forgotten pension offers CETV of £175k - need IFA — MoneySavingExpert Forum

xylophone

Try DeadlyD's thread.

https://forums.moneysavingexpert.com/discussion/comment/78900328/#Comment_78900328

MallyGirl

LindseyLula said:

thanks I will trawl through the forum. I don't have a reduced life expectancy but desperately want to retire early/change my career to something less stressful. I have plenty in the post to keep me going for at least 30 years or so!! 

The issue is that there is no 'pot' with a DB pension. If you really want to retire early have you asked them what you would get at 55?

Thrugelmir

LindseyLula said:

the problem I have is that the advice that I have received seems to be is erring on the side of the transfer not being recommended 

For what reasons?  Managing a sizable investment portfolio DIY isn't for everyone. Very easy to burn ones fingers severely. Despite what many promote. 

[Deleted User]

In simple terms, if the advisor pushes it through and you realise it's a mistake, there is a great deal of potential liability, hence why so many won't touch the transfer

LindseyLula

it seems that the inference why I won't be recommended for a transfer is based on 3 things:
1) I'm only 53 (have been advsied to re-visit when I'm closer to 55).
2) I haven't got a reduced life expectancy (fingers crossed I won't have in the future)
3) I haven't got any other investments (i.e. property) to see me through retirement. One IFA said that I have to prove that my DB is surplus to me retirement needs; which again seems ridiculous. I have £370000 tied up in a pension and this has to be deemed surplus to requirements to be recommended for transfer!!! I do have other pensions (DCs and a full state pension contribution).

Thanks for all of your answers.

Thrugelmir

LindseyLula said:

One IFA said that I have to prove that my DB is surplus to me retirement needs; which again seems ridiculous. 

Why? A secure indexed linked base income for life is what many people can only dream of.  Inflation over many decades will erode the buying power of a huge sum of money to very little.