Defined Benefit PensionTransfer

H4denogh0fwork25

Hi wondering if anyone can help... is there anyway to avoid expensive fees from IFA if I want to transfer DB pension to drawdown facility?
I understand they are trying to protect people but it seems wrong that I have to pay 6% to transfer £65k pension pot.

dunstonh

 is there anyway to avoid expensive fees from IFA if I want to transfer DB pension to drawdown facility?

Yes.   You can use an even more expensive FA.

I understand they are trying to protect people but it seems wrong that I have to pay 6% to transfer £65k pension pot.

That seems like a reasonsble fee.   £3900 is at the lower end for such a high risk transaction that is likely not to be in your best interests.  Typically fees are closer to £5k-£10k

jimjames

H4denogh0fwork25 said:

Hi wondering if anyone can help... is there anyway to avoid expensive fees from IFA if I want to transfer DB pension to drawdown facility?

Avoid the fees by sticking with the DB pension? 

Albermarle

Type 'DB transfer' into the search box at the top of the forum.

There were a lot more threads on the subject in the past when CETV's were high. Now they have dropped 50%, the interest in transferring out has waned. 

MarkCarnage

H4denogh0fwork25 said:

Hi wondering if anyone can help... is there anyway to avoid expensive fees from IFA if I want to transfer DB pension to drawdown facility?
I understand they are trying to protect people but it seems wrong that I have to pay 6% to transfer £65k pension pot.

The fee you quote is not particularly expensive in the context of that specialist high risk (for the IFA) market.

It may 'seem wrong' to you, but a number of people have shown considerable ignorance of the whole CETV methodology and process on this forum and would very probably have had an adverse outcome had they transferred. Is that £65k figure very recent? 

There was a period of several years when the rationale for transferring was stronger - that isn't the case any more and for the great majority it is now not likely to be a good idea so the chances are very high that any advice you did get would be against it. 

MallyGirl

MarkCarnage said:

H4denogh0fwork25 said:

Hi wondering if anyone can help... is there anyway to avoid expensive fees from IFA if I want to transfer DB pension to drawdown facility?
I understand they are trying to protect people but it seems wrong that I have to pay 6% to transfer £65k pension pot.

The fee you quote is not particularly expensive in the context of that specialist high risk (for the IFA) market.

It may 'seem wrong' to you, but a number of people have shown considerable ignorance of the whole CETV methodology and process on this forum and would very probably have had an adverse outcome had they transferred. Is that £65k figure very recent? 

There was a period of several years when the rationale for transferring was stronger - that isn't the case any more and for the great majority it is now not likely to be a good idea so the chances are very high that any advice you did get would be against it. 

You would still have to pay for the advice even if it was against the transfer

Mick70

never under estimate a "stress free" retirement which a DB will offer you mind 

Cobbler_tone

Trouble is that people see a £3k a year pension and struggle to reconcile that against the 'lure' of £60 odd grand lump sum. It is often a short sighted view but I understand it.
So many considerations...are they desperate for cash? what other provisions do they have? do they want spousal protection? do they understand the fees involved and tax implications?

I have learnt a lot in the past 12 months (on here) regarding the fluctuating values of CETV's, the costs involved in advice and the security that DB pensions bring. The bit I wrestle with (but fully understand) is the optimum timing of taking it but I guess without knowing my 'end date' you'll never know it. 

Dazed_and_C0nfused

Mick70 said:

never under estimate a "stress free" retirement which a DB will offer you mind 

Wise words indeed!

daveyjp

A DB pension is a 'draw down' facility.  You receive a risk free guaranteed draw down payment every month for life.
.