CETV Estimation Ranges and Risks Question

Marcon

joeriki said:

Thanks. Some clarity. The penion only came due this year in July. I have not taken any payments. I have early retirement because I was a trader at a bank many moons gone. I only worked there 4 years so this seams like a huge pension now. I was told I can take £46k lump sum and £6936pa, £8555pa or £284k transfer. No conditions were mentioned other than i need to speak to a financial advisor. I have another penion that is activated and pays similar. The reason I want to cash out is whatever they will say yes to. Not being dodgy here. There a a million reasons to cash out and I agree with them all. So I may as well lead with teh one that gets me in control of my funds. What are the reasons they say yes too?  Seams innapropriately controlling.

The ceding scheme cannot proceed with a transfer out until they have written proof that you have received the necessary advice. They don't need to see the advice and indeed won't want to. The advice is likely to cost you upwards of £5K and you need full advice, not the cheaper abbreviated sort, before the DB scheme can progress the transfer.

Your problem lies in finding a scheme which will accept the transfer if the advice is not to transfer. You say there 'are a million reasons and you agree with all of them' - what sort of reasons did you have in mind? There's no simple magic one anybody here can give you, because the adviser will have to do the whole thing in line with FCA requirements based on your individual circumstances.

You have the FCA to thank for the 'controlling', not the IFA, who has no choice but to comply or face a potential poor advice claim at any time in the future, with the consequent impact on PI premiums - which are already sky high because this is such high risk business.

joeriki

Dazed_and_C0nfused said:

So I may as well lead with teh one that gets me in control of my funds. What are the reasons they say yes too? Seams innapropriately controlling.

You don't have may funds.  You have a promise to pay you either £6936/year and a £46k lump sum or £8555/year.  And both continuing payments will no doubt have an inflation proofing element of some sort.

They are offering you £284k to go away and save them having to pay you the inflation proofed pension for the rest of your life.

Fund, money, its the same once its in my account?

joeriki

Thanks everyone on this thread. I have done a ton of reading on the forum as advised. I know see this is question 2. I got my answer. But I really need to be asking question 1. Should I even do this! Money makes us reactivie so I will start a new thread ao as to not confuse the issue and my self about my situation. But I got my answer here, The valuation may swing around a bit biut it will be somewhere between 260k and 320k. Its a wide range. But the real question is should I even be doing this drastic move, Cheers. It was useful. Please feel three to commnet on my new thread. 

dunstonh

 But I really need to be asking question 1. Should I even do this!

There is another issue you should be aware of.

The FCA banned contingency charging with DB transfers.  The cost of DB pension transfer advice will likely be around £5000 to £10,000.    The adviser is not allowed to say they will only charge if you transfer the pension.   If the advice is that you should not transfer the pension, then you still have to pay the advice bill.     You still won't be able to transfer the pension as no providers are accepting transfers where the adviser is not to transfer unless it goes through the adviser's agency.   Advisers will not transfer cases where the advice is not suitable to transfer.

A year or two ago, you would probably have got it through.  Now?   You are looking at single digit odds.

QrizB

You've said in your other thread that you're not UK-resident. This is likely to add further complications to any pension transfer.