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DC Pension Transfer

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Hi have a pension and am looking to transfer it, I have been looking at Royal London as currently have a drawdown pension with them and am happy.

if i wish to transfer my other DC pension to another provider, do I need to take financial advice or can 
I transfer without sign off from an IFA?

if so, what sort of costs would be looking at for straight forward transfer if I have to use them? 

Thank you. 


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Comments

  • Does the DC pension you want to transfer have any safeguarded benefits?

    That is usually the only reason an IFA would be needed for a transfer to another scheme.
  • gm0
    gm0 Posts: 1,162 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    Full transfer of any DC pension is a "right" you have under legislation.  And it can be done DIY for free.  Or you can pay a provider (pension review farm, roboadviser e.g. PensionBee etc. to do admin for you

    Mostly it works on a "pull" model. You ask the new provider to action it.

    A minority of DC pension scheme members who don't just have a "pot".  But have other safeguarded benefits such as (the classic example - a guaranteed annuity rate GAR -  a right to buy an annuity at a minimum % - often higher than central bank rates and the offered annuity rates in recent years).  Transfer out and losing that right would be in many cases an act of financial self harm. So the rules on how transfers are processed were updated to include extra controls for ceding schemes where these exist
  • Marcon
    Marcon Posts: 14,394 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    Hi have a pension and am looking to transfer it, I have been looking at Royal London as currently have a drawdown pension with them and am happy.

    if i wish to transfer my other DC pension to another provider, do I need to take financial advice or can 
    I transfer without sign off from an IFA?

    if so, what sort of costs would be looking at for straight forward transfer if I have to use them? 

    Thank you. 


    If you have 'safeguarded benefits' (normally some sort of promise such as a Guaranteed Annuity Rate) and the transfer value is at least £30K, you need to receive advice from a suitably regulated individual.

    The requirement is to receive advice, not necessarily take it, so the adviser doesn't have to 'sign off' the transfer - just confirm they've given advice. 

    Whether or not you need advice, you can arrange the actual transfer yourself, unless either your current scheme or its proposed destination is a provider which will only deal via an intermediary.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • Albert0500
    Albert0500 Posts: 21 Forumite
    10 Posts
    gm0 said:
    Full transfer of any DC pension is a "right" you have under legislation.  And it can be done DIY for free.  Or you can pay a provider (pension review farm, roboadviser e.g. PensionBee etc. to do admin for you

    Mostly it works on a "pull" model. You ask the new provider to action it.

    A minority of DC pension scheme members who don't just have a "pot".  But have other safeguarded benefits such as (the classic example - a guaranteed annuity rate GAR -  a right to buy an annuity at a minimum % - often higher than central bank rates and the offered annuity rates in recent years).  Transfer out and losing that right would be in many cases an act of financial self harm. So the rules on how transfers are processed were updated to include extra controls for ceding schemes where these exist
    My pot of money is wife Lifesight, i'm not aware of any such rights or protections 

    thanks
  • Albert0500
    Albert0500 Posts: 21 Forumite
    10 Posts
    "With" not wife.
  • Albert0500
    Albert0500 Posts: 21 Forumite
    10 Posts
    Does the DC pension you want to transfer have any safeguarded benefits?

    That is usually the only reason an IFA would be needed for a transfer to another scheme.
    No, i'm not aware of any and I don't see anything on the annual statements
  • Albermarle
    Albermarle Posts: 27,820 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Does the DC pension you want to transfer have any safeguarded benefits?

    That is usually the only reason an IFA would be needed for a transfer to another scheme.
    No, i'm not aware of any and I don't see anything on the annual statements
    So normally any transfer out to another DC scheme should be problem and fee free.

    However RL usually work with advisors and may not allow a transfer in by a member of the public who has not taken advice, even if you are an existing customer. I am not sure about this though, you would have to check with RL.
  • Bobbydue
    Bobbydue Posts: 46 Forumite
    Third Anniversary 10 Posts Name Dropper
    Does the DC pension you want to transfer have any safeguarded benefits?

    That is usually the only reason an IFA would be needed for a transfer to another scheme.
    No, i'm not aware of any and I don't see anything on the annual statements
    So normally any transfer out to another DC scheme should be problem and fee free.

    However RL usually work with advisors and may not allow a transfer in by a member of the public who has not taken advice, even if you are an existing customer. I am not sure about this though, you would have to check with RL.
    Think your right about transferring to RL, might just stay with Lifesight's drawdown, on the face of it, i'd save more money staying with them then paying 1% for advice,
  • xylophone
    xylophone Posts: 45,607 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Think your right about transferring to RL,
    Check here?


    https://www.royallondon.com/pensions/pension-transfers/

  • MetaPhysical
    MetaPhysical Posts: 449 Forumite
    100 Posts First Anniversary Photogenic Name Dropper
    I did mine this year myself.  I pulled a old "dormant" pot of £60k that was charging high rates of 1% into my employer Aviva pot that I am contributing to every month.  I get charges of 0.3% on the Aviva pot.  I requested this online at the Aviva end and had to do via filling out the forms and posting them at the "from" end.  Took about six weeks to see the balance in Aviva.
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