Defined Benefit Pension transfer out

Marcon

Cherryb32 said:

Deedee54 said:

Newbie here so please be kind
I have an old defined benefit pension which i want to transfer out of due to the company experiencing financial difficulties and not paying into the scheme for the last 6 months. I have had a letter from the pension company stating that its looking very likely that things wont improve due to the conflicts in the middle east (thats where 60% of the income normally comes from) so theres a big chance the scheme will enter into a Pension Protected Fund. Ive asked for a transfer out valuation (i recieved this today) i was  all ready to transfer into an existing pension pot with L&G but they dont accept DB pension pots?. Also i cant get free advice through pension wise for the dame reason? the transfer value is £79k and i don t know where to go for IFA? ive had a quick look online but theres so many and unfortunatey them mostly seem quite costly? is there anywhere i can get free IFA or low cost?? any advice greatly appreciated

Hi Deede54 did you find a FA that would help with the transfer without excessively high fees? 

The fees aren't excessively high - it's the risk factor (to the adviser) which really shoots the lights out, and why you should expect to pay upwards of £5K for advice.

doodling

Hi,

What does the letter from the pension scheme actually say?

What action is the pension scheme taking to recover the underpayments?  Are they saying that your employer will shortly be going bust?

Hoenir

doodling said:

What action is the pension scheme taking to recover the underpayments?  Are they saying that your employer will shortly be going bust?

If a liability continues to accrue to the pension scheme to fund past and future benefits. Then ultimately the employer will become insolvent. If current employee deductions are not being paid across then there's serious cashflow issues. The HMRC being the priority creditor of the business.