Anyone disputed a pension transfer fee?

valuepack

Hi all

One of my pension pots is 19k held with Lifesight. It was from employment 20 years ago.

Looking at their charges sheet they charge a whopping £1500 to transfer out of their pension.

I understand that from 2017 new pensions need to have nil transfer fee and a 1% cap for people over 55 transferring out an older pot.

I'm 48 and want to move this pension to another pot.

I'm going to call them next week to tell them that I think it's an unreasonable charge and I want to make a complaint following their company complaint process.

Have any forumites challenged a transfer fee?

Any comments welcome, thanks.

jimjames

You might find better replies on the pension board as more people there might have experience

valuepack

Sorry I didn't see a pension board!

Please can a mod move the thread?

masonic

The main successful challenges to exit fees I'm aware of is where the provider has varied the contract to increase costs to consumers, but not given them a free exit if they do not wish to accept the new terms. What is prompting you to transfer it now after 20 years?

dunstonh

Looking at their charges sheet they charge a whopping £1500 to transfer out of their pension.

Are you sure?

They have an advice arm.   Could the charge be if you use their advice arm to faciliate the transfer rather than a charge on the pension itself?

I understand that from 2017 new pensions need to have nil transfer fee and a 1% cap for people over 55 transferring out an older pot.

not quite.    Certain invesment funds may have a charge, such as  market value reduction on a with profits fund, which is not cover by the over 55 1% rule.

I'm going to call them next week to tell them that I think it's an unreasonable charge and I want to make a complaint following their company complaint process.

In what way is it unreasonable?

Have any forumites challenged a transfer fee?

As we don't know what the charge is for or from when the pension is, it is difficult to know what you would be challenging.    

I haven't come across a lifesight plan with a transfer penalty before.   Their plan is a master trust and there is no exit charges on that.   So, it may help if you tell us more about this plan and when it was taken out and what it is invested in.

valuepack

dunstonh said:

Looking at their charges sheet they charge a whopping £1500 to transfer out of their pension.

Are you sure?

They have an advice arm.   Could the charge be if you use their advice arm to faciliate the transfer rather than a charge on the pension itself?

I understand that from 2017 new pensions need to have nil transfer fee and a 1% cap for people over 55 transferring out an older pot.

not quite.    Certain invesment funds may have a charge, such as  market value reduction on a with profits fund, which is not cover by the over 55 1% rule.

I'm going to call them next week to tell them that I think it's an unreasonable charge and I want to make a complaint following their company complaint process.

In what way is it unreasonable?

Have any forumites challenged a transfer fee?

As we don't know what the charge is for or from when the pension is, it is difficult to know what you would be challenging.    

I haven't come across a lifesight plan with a transfer penalty before.   Their plan is a master trust and there is no exit charges on that.   So, it may help if you tell us more about this plan and when it was taken out and what it is invested in.

dunstonh said:

Looking at their charges sheet they charge a whopping £1500 to transfer out of their pension.

Are you sure?

They have an advice arm.   Could the charge be if you use their advice arm to faciliate the transfer rather than a charge on the pension itself?

I understand that from 2017 new pensions need to have nil transfer fee and a 1% cap for people over 55 transferring out an older pot.

not quite.    Certain invesment funds may have a charge, such as  market value reduction on a with profits fund, which is not cover by the over 55 1% rule.

I'm going to call them next week to tell them that I think it's an unreasonable charge and I want to make a complaint following their company complaint process.

In what way is it unreasonable?

Have any forumites challenged a transfer fee?

As we don't know what the charge is for or from when the pension is, it is difficult to know what you would be challenging.    

I haven't come across a lifesight plan with a transfer penalty before.   Their plan is a master trust and there is no exit charges on that.   So, it may help if you tell us more about this plan and when it was taken out and what it is invested in.

Actually, I've just read the charges sheet again and it says:

"£1,500 to process a pension sharing order"

So I think I have got the wrong end of the stick, thanks for your post as it prompted me to read the sheet again.

It mentioned nothing about charges for transferring out so presumably they don't, but I will call them to check.

LHW99

I think pension sharing orders are in case of divorce.

Usually to transfer a DC pension without any special features (guaranteed annuity rate etc) you would contact the scheme you want to transfer to, and they would deal with things.