DB Transfer - costs

debroxton

Hi

Does anyone know of a Financial Advisor who charges low fees for a DB transfer?   The best I've found so far is about £15,000

JoeCrystal

I am sure there is. Sound like no one wants your business, so they may intentionally price themselves out properly.

dunstonh

All of the advice firms I know that did DB transfers have now pulled out.   The last of which had increased their charges initially to combat the rise in PI insurance but with this year's renewal it was just too much more and would have resulted in charges, like £15,000.     They decided that with the increased cost, the removal of contingency charging and the way that CETVs are falling, they would not do enough to cover the costs.

Albermarle

Apart from the cost of the advisor, there are many issues involved in a DB transfer. It is not a simple process and may just cost a lot of money with no result.
There is a search box at the top of the page. Type 'DB Transfer'  to see many threads on the subject.

xylophone

https://forums.moneysavingexpert.com/discussion/comment/75932101/#Comment_75932101

OP originally considered this back in 2019.

debroxton

Thanks for the replies, yes I did consider this back in 2019, but I have to act this year, or will be tied in forever. 

Reasons are health condition and being single with children over 21. @xylophone @dunstonh.

JoeCrystal

You are aware that you may not have the right to transfer if at the age of the normal pension age?

debroxton

Hi Joe, my pension pays out at 60, I'm 58 now and I've read that I can't transfer out within a year of my receiving the pension.  @JoeCrystal

Marcon

debroxton said:

Hi Joe, my pension pays out at 60, I'm 58 now and I've read that I can't transfer out within a year of my receiving the pension.  @JoeCrystal

You have a statutory right to transfer out up to one year before your particular scheme's normal retirement age, but many schemes allow you to have a non-statutory transfer for some months after that. Might be worth checking with your scheme administrators what the Trustee's current position is on transfers within a year of reaching NRA. 

xylophone

The best I've found so far is about £15,000

3% of the CETV?

And paying the fee is required regardless of whether or not you get a recommendation to transfer.

If you are advised that it is in your best interests to stay in the scheme, then you will find that finding a scheme to accept the transfer will not be easy.

In your previous post you said

The value of my pot is over £500,000, I smoke and I drink, so probably won't live long enough for it to be worthwhile staying in.

Winston Churchill?

https://www.cigaraficionado.com/article/a-gentleman-of-history-6006#:~:text=From that point on, Churchill,defunct La Aroma de Cuba.

https://grapecollective.com/articles/allies-drinking-buddies-the-boozy-brotherhood-of-churchill-and-fdr-

However, you now mention a health condition.

A transfer out may bring its own problems.....

https://adviser.royallondon.com/pensions/viewpoint/2021/june/transferring-pensions-in-ill-health/

phynix_uk

DB transfer advice is complex and heavily regulated. As mentioned in previous comments, a lot of IFAs have withdrawn from the market leaving options limited and often expensive. 

It's important to understand the risks involved and since non-contingent charging came into play you need to pay upfront without knowing what the outcome will be.

You should be able to discuss the advantages/disadvantages to a potential transfer prior to deciding if you want to go down this road. A decent IFA should take time to help you understand your current benefits, if they are already suitable then you should think carefully about why you would want to jeopardise that. 

Health is a consideration but often not enough to justify a transfer on it's own. Legacy planning another, flexibility to income and drawing lump sums out however, the downsides are very real. Higher costs, complexities, RISK, giving up valuable safeguarded benefits.

As an adviser who deals with these transfers I can understand the attraction but you should go into this with your eyes wide open. You might find more success using a larger company, one that can afford the insurance, that has experience and can afford to say no to you.