Any viable options or suggestions please?

Shire_Man

Update: 

Just a “thank you” to everyone who responded, certainly responses and pointing to related threads provided different ( & broader) perspective 🙏

Given the unearthed DB also has an embedded widows benefit I’m coming to conclusion I’ll not get IFA support for moving to a SIPP, therefore receiving SIPP scheme also unlikely to want to accept it. 

I’ll save the minimal IFA cost, plus risk of investment failure, but the (£5.4k pa) DB has no annual increase or PCLS option so will gradually lose to inflation. 

As some have said elsewhere, it’s an ‘entitlement’ not my own pot of money, so be grateful they found me 😆. 

Hello,     

Having retired several years ago, (costly IFA involved at time), I’m grateful to be in receipt of mix of full State + final salary + drawdown SIPP (when needed), + remaining savings, so I’m moderately comfortable, 👍( though worked hard for it). 

Recently get a trace letter from old employer (35+ yrs ago), advising I have an old deferred pension with transfer value of circa £62k, or non-indexed pension of circa £5k pa.               (gratefully received👍) 

Given I’m 70, I doubt I’ll live the 12+ years for breakeven, therefore want to add to my existing SIPP, which will help supplement drawdown for when replacement hip(s) are needed🤦‍♂️

From what I understand, current Government rules require ‘IFA advice’ sign-off even to make simple decision to transfer to existing SIPP, which means a fee of circa £1.2-1.5k to assess my finances and then agree and tell me that’s acceptable!

Rather a nonsense for both parties, an expensive one for me! 🤦‍♂️

Anyone been in similar position and found a low-cost resolution/workaround please? 

TIA

Yorkie1

Is it a defined benefit pension?

Did you get a specific quote of £1200 - 1500 for the advice, or is that your estimate of the cost? Many other people on similar threads have quoted advice which is nearer the £4K - £5K mark.

I can't remember the name, but someone did post on a recent DB transfer thread the name of an adviser they found and used.

For most people, the advice is that transfer is not advised. You generally then need to transfer to a stakeholder pension and then onwards to any other pension, if desired.

Have a look at other threads on this.

Marcon

Shire_Man said:

From what I understand, current Government rules require ‘IFA advice’ sign-off even to make simple decision to transfer to existing SIPP, which means a fee of circa £1.2-1.5k to assess my finances and then agree and tell me that’s acceptable!

Rather a nonsense for both parties, an expensive one for me! 🤦‍♂️

Anyone been in similar position and found a low-cost resolution/workaround please? 

TIA

It isn't a simple decision and it's a hugely high risk one for the adviser - so the chances of finding someone willing to do it for as little as £1,500 are close to zero.

No point looking for a 'low cost workaround' - it simply isn't worth any adviser taking the risk for such a tiny 'reward'.

Might be worth getting abridged advice (that is likely to be in the £1,500 arena) to see what that throws up. It will be one of two answers: either 'no', or 'need to move to full advice before giving a definitive answer'. If the latter, you'd need to pay the balance of the'full' fee - you can't transfer unless you have had full advice.

Even if the answer is 'no', you can still transfer if the receiving scheme will accept the transfer. Currently only a stakeholder pension must accept transfers from any registered UK pension scheme - but you'll still need full advice before the DB scheme can proceed with the transfer.

QrizB

Shire_Man said:

Given I’m 70, I doubt I’ll live the 12+ years for breakeven, 

A generally healthy 70 year old can expect to live into their late 80s, so you're likely to receive more money in total if you take the pension rather than the transfer value.

Moreso when you consider that the IFA fee for advice is likely to be £5k+, not the £1500 you're expecting.

ukdw

If an up to 25% tax free lump sum (PCLS) is an option - then that is a compromise that might be worth considering.

xylophone

Are you able to take a tax free PCLS from the pension?

If so, what is the maximum you could take?

What would be the residual pension?

NickPoole

Take the Maximum Lump Sum and the Pension and rest your weary head.

(it really is bunce, as my old dad used to say, so don't worry about it!)

Shire_Man

Yorkie1 said:

Is it a defined benefit pension?

Did you get a specific quote of £1200 - 1500 for the advice, or is that your estimate of the cost? Many other people on similar threads have quoted advice which is nearer the £4K - £5K mark.

I can't remember the name, but someone did post on a recent DB transfer thread the name of an adviser they found and used.

For most people, the advice is that transfer is not advised. You generally then need to transfer to a stakeholder pension and then onwards to any other pension, if desired.

Have a look at other threads on this.

Yes, DB pension, 

Yes, scheme has a ‘preferred provider’ capped charge in place. 

Appreciate most IFA’s wouldn’t recommend giving up ‘lifelong’ benefits that the DB scheme provides. 

It’s a small annualised pension (from 1980’s era) with no lump-sum withdrawal option, so TBH, simpler to consolidate into my actively managed SIPP. 

So costs of IFA,
plus obtaining receiving fund permission
(or intermediate cost for Stakeholder Pension setup etc) also need to be factored in. 

Appreciate most IFA’s wouldn’t make anything on this and would play safe by not recommending. 

Just seeking any options that would. 

Albermarle

Shire_Man said:

Yorkie1 said:

Is it a defined benefit pension?

Did you get a specific quote of £1200 - 1500 for the advice, or is that your estimate of the cost? Many other people on similar threads have quoted advice which is nearer the £4K - £5K mark.

I can't remember the name, but someone did post on a recent DB transfer thread the name of an adviser they found and used.

For most people, the advice is that transfer is not advised. You generally then need to transfer to a stakeholder pension and then onwards to any other pension, if desired.

Have a look at other threads on this.

Yes, DB pension, 

Yes, scheme has a ‘preferred provider’ capped charge in place. 

Appreciate most IFA’s wouldn’t recommend giving up ‘lifelong’ benefits that the DB scheme provides. 

It’s a small annualised pension (from 1980’s era) with no lump-sum withdrawal option, so TBH, simpler to consolidate into my actively managed SIPP. 

So costs of IFA,
plus obtaining receiving fund permission
(or intermediate cost for Stakeholder Pension setup etc) also need to be factored in. 

Appreciate most IFA’s wouldn’t make anything on this and would play safe by not recommending. 

Just seeking any options that would. 

Even if an IFA ( with the correct credentials ) gives a negative recommendation, you can still transfer as long as you have been through the correct process with the IFA.
The problem then is that hardly any pension providers will accept the transfer, including almost certainly your SIPP provider.
It should be possible to transfer to a stakeholder pension ( an outdated DC type scheme that has to legally accept transfers, but only a couple exist) and then onto your SIPP .

If you type 'DB transfers' into the search box, you wills see quite a few threads on the subject.

Shire_Man

NickPoole said:

Take the Maximum Lump Sum and the Pension and rest your weary head.

(it really is bunce, as my old dad used to say, so don't worry about it!)

No lump sum option, mid 1980’s scheme, take full pension or transfer are only options given. 

Yes it’s “bunce” but as my dad said, “look after the pennies and the pounds look after themselves”, so not to be wasted 👍

WitsEnd101

I'm in a similar boat with an old work place pension being managed by Aegon. I can access the enhanced TFLS provided I buy an annuity. Taking the enhanced TFLS and then the balance to drawdown or UFPLS requires advice. I have spoken to Aegon and they say that they are happy with a FTA which does not have to be a minimum duration. So my plan is to do exactly that when I am ready. Opting for the shortest duration FTA and then moving the funds to my SIPP at the end of that period. 

It might be worth speaking to the pension company to see if this is acceptable.