Pension Advice Quote

Talesin

I have an old workplace DB pension that has a transfer value of 120,000, two years ago it was 143,000.   If I take the pension I will get around 6k per year but I would rather transfer it into another pension pot I have to give it a couple of years to grow.  I spoke with a pension advisor who said it would cost around £5k for advice, is this reasonable?

wjr4

Do you actually understand this pension? 

molerat

£5K sounds in the ball park for the advice.  You do realise the advice will most likely be negative leaving you with limited options where you can transfer it to in the first instance - not sure how many stakeholders are left now.

Emmia

Talesin said:

I have an old workplace DB pension that has a transfer value of 120,000, two years ago it was 143,000.   If I take the pension I will get around 6k per year but I would rather transfer it into another pension pot I have to give it a couple of years to grow.  I spoke with a pension advisor who said it would cost around £5k for advice, is this reasonable?

Your DB pension provides a guaranteed income for life, inflation linked... the income/value of a DC pot you'd move the money to, is dependent on the vagaries of the stock market or whatever it's invested in.

Many people would give their right arm for a guaranteed inflation proof element to their pension.

I'd go away and have a think about it. If you transfer (presuming you can) and end up in a worse situation you can't go back. 

Dazed_and_C0nfused

Talesin said:

I have an old workplace DB pension that has a transfer value of 120,000, two years ago it was 143,000.   If I take the pension I will get around 6k per year but I would rather transfer it into another pension pot I have to give it a couple of years to grow.  I spoke with a pension advisor who said it would cost around £5k for advice, is this reasonable?

What are the revaluation rules for this deferred DB pension?

Talesin

wjr4 said:

Do you actually understand this pension? 

Yes I do understand it

dunstonh

I have an old workplace DB pension that has a transfer value of 120,000, two years ago it was 143,000. 

4 years ago it probably would have been around £250k

 If I take the pension I will get around 6k per year but I would rather transfer it into another pension pot I have to give it a couple of years to grow. 

The benefits are almost certainly still growing where it is.    

I spoke with a pension advisor who said it would cost around £5k for advice, is this reasonable?

That is at the lower end.   
Statistically, the odds of being suitable to transfer are back in the 1 in 10 cases ballpark.   

Yes I do understand it

So, what are the revaluation rules for this pension?
What is the income and PCLS?
When was the last time that it was revalued in today's terms?
Why do you think that you are in the 1 in 10 that is suitable to transfer?

Marcon

Talesin said:

wjr4 said:

Do you actually understand this pension? 

Yes I do understand it

Then why are you thinking of transferring it? What would a transfer accomplish that your current DB scheme won't?

Albermarle

If you type 'DB Transfer' into the search box at the top of the page, you will see lots of threads on the subject, including many comments regarding advisor fees.
You may notice most of them are from two or three years ago, as interest in transferring has waned a lot due to the very large drop in transfer values ( as already mentioned) .

bjorn_toby_wilde

The drop in transfer value doesn’t mean your pension has dropped in value. It’s a defined benefit pension, which means a promise to pay you a sum on retirement. The sum paid out will be revalued every year relative to inflation.

Despite saying you understand the pension, your first post seems to show that you don’t fully understand it.

Brie

£5k is cheap.  I was quoted "in excess of £7k".  

And they will take this money and very likely advise that you shouldn't move the pension.  Because a DB pension is so good compared to anything else.