Tips on how to ensure your Financial Advisor gives the green light to transfer DB pension to SIPP.

ANotInUseName

To clarify the GMP at time of leaving was £603, balance of plan £1702. The figures quoted in previous post reflect estimated at age 60.

ANotInUseName

Ah Brie, yes I have had statements from the new company who manage the pension fund and each statement has either gone sideways or down. For example on the date of leaving, my estimate pension at age of 60 was just over £11k pa, the latest statement I had from 23/6/2022 is now just over £9.5k pa. 

Albermarle

The only reason a good IFA will say yes is if you can make them believe your time on this earth is so short that you need the money now as you won't be able to spend it in a year or two.

There are other situations, where a positive recommendation can be given. For example if you have two DB pensions and want to keep one ( maybe the bigger one ) and transfer the other one. Having a DB and a DC pension, is seen by many as a very good place to be. 

ANotInUseName

Thanks Albermarle, these were the sorts of nuggets of information I was looking for, I do have another DB pension which matures earlier and is far larger. Appreciated.

Neilb1969

Good luck with getting a positive recommendation. By my recent experience I suspect it's practically impossible now. I'm 52, retired early after 30 years working in capital markets in the city. Not yet drawing on any pensions but wanted to transfer DB pension with a 52x CETV. Despite significant other assets (cash, investments, mortgage free house, existing SIPP), years of investing experience and an appropriate risk profile, the answer was still "no". Advisors seem to give 99% weight to the fact DB is guaranteed and inflation linked and ignore everything else. Very frustrating not to be able to take control of your own money

ANotInUseName

Neil, thanks for sharing your experience - this sounds so familiar, likewise I'm mortgage free, other investments that I don't want to touch at the moment, another DB pension and 15 years working in trading so you have my sentiments exactly regarding not being able to take control of your own money.

Did you actually take the plunge and pay a financial advisor only to be told - computer says 'No', or are you in the same position as myself i.e. in a state of flux - will understand if you don't wish to answer.

With reference 'inflation linked', I've actually written back to the company managing this particular DB pension as it doesn't appear to be as inflation proof as I was originally led to believe which is giving me cause for concern.

Cus

Can I ask, why have you waited so long to try to transfer?  

dunstonh

Did you actually take the plunge and pay a financial advisor only to be told - computer says 'No'

If you think that then it's probably best that you can't transfer as it indicates a complete lack of understanding.

xylophone

With reference 'inflation linked', I've actually written back to the company managing this particular DB pension as it doesn't appear to be as inflation proof as I was originally led to believe which is giving me cause for concern.

What do you think has changed?

It would seem that the pension was never "inflation proof" as increases in deferment were capped and increases in payment (from age 65) limited to up to 3% CPI on the revalued GMP and "Trustee discretion" on the  revalued excess.

To clarify the GMP at time of leaving was £603, balance of plan £1702.  
 

GMP increases by 7% pac for each complete year between the leaving date and state pension age.
Balance, or excess is just over £7k increasing in line with RPI up to a maximum of 5%

You also mentioned that all the GMP is post 88.

GMP age (65 for a man)  and SPA are no longer in sync.

QrizB

Neilb1969 said:

Good luck with getting a positive recommendation. By my recent experience I suspect it's practically impossible now.

Did the nice people at LV not give you the answer you wanted, after all?