Wanting to convert DB to drawdown to fund early retirement with other Pensions funding retirement

USExpat

I left the UK 25 years ago and will be returning next year to retire early. I have a DB from 14 years service prior to moving overseas. My 25 years overseas have allowed me to build up another substantial DB Pension and 401k. My plan was to transfer my old DB to a drawdown to fund my retirement from 55 to 62. At 62 my other DB will payout along with Social security. 401K fill act as a back up for discretionary spending such as long hauls trips, cars etc. My income at 62 will more than cover my expenses(house paid off).
What are my chances of finding someone and getting the ok to transfer the original DB plan to allow drawdown.
The big elephant in the room is that its a British Steel DB and most  wont touch me with a barge pole. Thanks

MallyGirl

can you not just take it early with an actuarial reduction? Do you need to exhaust it to fund the gap?
No one can say what your chances are beyond them not looking good based on anecdotal evidence on here.

USExpat

I can only take it as a monthly annuity and taking it would not provide sufficient  funds. It would need to be exhausted in the 7 years to provide sufficient income. I guess I was hoping that having more than enough income sources to last me from 62 would put me in a more favorable position. 

USExpat

USExpat said:

I can only take it as a monthly annuity and taking it would not provide sufficient  funds. It would need to be exhausted in the 7 years to provide sufficient income. I guess I was hoping that having more than enough income sources to last me from 62 would put me in a more favorable position. 

Its hard for me to believe that based on my plans, it would be deemed to be not in my best interest to transfer. 

dunstonh

What are my chances of finding someone and getting the ok to transfer the original DB plan to allow drawdown.

Pretty close to counting the number that would do it on your hands.

1) You are in the US.  Most advice firms will not provide advice to US citizens as their PI insurance won't allow it.  Typically you find that countries that are subject to sanctions plus the US are refused.
2) The number of advice firms providing DB advice is falling daily from an already low point (falling DB CETVs not helping)
3) British Steel shouldn't be an issue on paper but realistically it would put a lot off doing what is already a high risk transaction.   It would be like waving a red flag to the FCA saying "come and get me".

You are going to need a firm that deals with ex-pats.  Does not restrict the US, does DB transfers and doesn't baulk at British Steel cases.

USExpat

dunstonh said:

What are my chances of finding someone and getting the ok to transfer the original DB plan to allow drawdown.

Pretty close to counting the number that would do it on your hands.

1) You are in the US.  Most advice firms will not provide advice to US citizens as their PI insurance won't allow it.  Typically you find that countries that are subject to sanctions plus the US are refused.
2) The number of advice firms providing DB advice is falling daily from an already low point (falling DB CETVs not helping)
3) British Steel shouldn't be an issue on paper but realistically it would put a lot off doing what is already a high risk transaction.   It would be like waving a red flag to the FCA saying "come and get me".

You are going to need a firm that deals with ex-pats.  Does not restrict the US, does DB transfers and doesn't baulk at British Steel cases.

I was thinking of doing it once i was back in the UK in 6 months time. I assume that would make things easier as a UK citizen and tax resident? 

dunstonh

USExpat said:

dunstonh said:

What are my chances of finding someone and getting the ok to transfer the original DB plan to allow drawdown.

Pretty close to counting the number that would do it on your hands.

1) You are in the US.  Most advice firms will not provide advice to US citizens as their PI insurance won't allow it.  Typically you find that countries that are subject to sanctions plus the US are refused.
2) The number of advice firms providing DB advice is falling daily from an already low point (falling DB CETVs not helping)
3) British Steel shouldn't be an issue on paper but realistically it would put a lot off doing what is already a high risk transaction.   It would be like waving a red flag to the FCA saying "come and get me".

You are going to need a firm that deals with ex-pats.  Does not restrict the US, does DB transfers and doesn't baulk at British Steel cases.

I was thinking of doing it once i was back in the UK in 6 months time. I assume that would make things easier as a UK citizen and tax resident? 

As long as you have given up US citizenship and are a UK resident for tax purposes that problem goes away.

Brie

Is there any option still of transferring it to a QROPS?  And then taking drawdown from that?  Maybe via Channel Islands or IoM?

Marcon

USExpat said:

USExpat said:

I can only take it as a monthly annuity and taking it would not provide sufficient  funds. It would need to be exhausted in the 7 years to provide sufficient income. I guess I was hoping that having more than enough income sources to last me from 62 would put me in a more favorable position. 

Its hard for me to believe that based on my plans, it would be deemed to be not in my best interest to transfer. 

Rather a lot of people think that (and some may be right), but the adviser is so hemmed in by FCA regs they aren't likely to share your enthusiasm any time soon, I fear.

USExpat

dunstonh said:

USExpat said:

dunstonh said:

What are my chances of finding someone and getting the ok to transfer the original DB plan to allow drawdown.

Pretty close to counting the number that would do it on your hands.

1) You are in the US.  Most advice firms will not provide advice to US citizens as their PI insurance won't allow it.  Typically you find that countries that are subject to sanctions plus the US are refused.
2) The number of advice firms providing DB advice is falling daily from an already low point (falling DB CETVs not helping)
3) British Steel shouldn't be an issue on paper but realistically it would put a lot off doing what is already a high risk transaction.   It would be like waving a red flag to the FCA saying "come and get me".

You are going to need a firm that deals with ex-pats.  Does not restrict the US, does DB transfers and doesn't baulk at British Steel cases.

I was thinking of doing it once i was back in the UK in 6 months time. I assume that would make things easier as a UK citizen and tax resident? 

As long as you have given up US citizenship and are a UK resident for tax purposes that problem goes away.

That's interesting, so keeping both my US and UK citizenship while living in the UK  as a resident can affects things ? I guess i need to do some more research before I make the move back. The cost of renouncing US citizenship is not cheap anymore and i would rather have the flexibility especially as one of my kids will not be returning to the UK anytime soon. 

USExpat

Brie said:

Is there any option still of transferring it to a QROPS?  And then taking drawdown from that?  Maybe via Channel Islands or IoM?

Not sure. I enquired one time over here in the US but was told no plans here qualify as QROPS. Will check into it again. Thanks