Pension Advice Quote

Marcon

Brie said:

£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.  

If you commission a service then you'd expect to pay for it. You are buying advice, and that's what you pay for. You seem to be implying that somehow the fact someone is paying a fee means they can dictate the outcome! Contingent charging was banned some years ago to ensure the adviser was not motivated in favour of advising someone to transfer purely because they wouldn't be paid if the advice was to remain.

It is - and always has been - open to someone to transfer against advice if they can find a receiving scheme willing to accept the transfer. Stakeholder pensions have to accept such transfers (after someone has received advice where advice is mandatory, otherwise the ceding scheme can't pay over the transfer) and it has always been possible for someone to open a retail product for themself and arrange their own transfer.

bjorn_toby_wilde

Marcon said:

Brie said:

£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.  

If you commission a service then you'd expect to pay for it. You are buying advice, and that's what you pay for. You seem to be implying that somehow the fact someone is paying a fee means they can dictate the outcome! Contingent charging was banned some years ago to ensure the adviser was not motivated in favour of advising someone to transfer purely because they wouldn't be paid if the advice was to remain.

It is - and always has been - open to someone to transfer against advice if they can find a receiving scheme willing to accept the transfer. Stakeholder pensions have to accept such transfers (after someone has received advice where advice is mandatory, otherwise the ceding scheme can't pay over the transfer) and it has always been possible for someone to open a retail product for themself and arrange their own transfer.

That’s not fair and you’re selectively quoting Brie.

I read Brie’s comment and nowhere does she imply that the payee could dictate the outcome.  You removed the last sentence which gives the context.

MallyGirl

I just took Brie's post as information for the OP who is new to the forum and might not realise this.

artyboy

I'm just surprised, given how much CETV values have fallen, we are still getting threads of this sort suggesting people think that transferring is a good idea...

Marcon

artyboy said:

I'm just surprised, given how much CETV values have fallen, we are still getting threads of this sort suggesting people think that transferring is a good idea...

Because people who are new to the idea of transferring and haven't seen a CETV before are bowled over by the £ signs whizzing before their eyes - and precious few of them have clocked that a pension they left behind some years ago is (in the vast majority of cases) cheerfully revaluing away as time passes. 

bjorn_toby_wilde

artyboy said:

I'm just surprised, given how much CETV values have fallen, we are still getting threads of this sort suggesting people think that transferring is a good idea...

I think it’s down to fundamental misunderstandings of the difference between DB and DC. People see a transfer value and assume that’s their “pot”.  They see a drop in value and assume their pension is underperforming and they should transfer out.

We’re a self selecting group who are interested in pensions and want to learn more. The vast majority of people will find it much more difficult to navigate.

Albermarle

artyboy said:

I'm just surprised, given how much CETV values have fallen, we are still getting threads of this sort suggesting people think that transferring is a good idea...

A lot of people have no idea of the real value of guaranteed income, especially with annual increases.
For example if you said that the state pension was worth around £300K, they would just say how can that be when it is only £12K a year.

Cobbler_tone

The best thing to do is run a quote on a lifetime annuity with protected increases, plus whatever widows pension using your CETV, remembering to take your fees off. Then you’ll have an idea of the true value of the DB. Even then, that’s if you had the choice of any annuity. Some people’s eyes light up at the ££££’s, usually those who would rather have a pot of money as opposed to a guaranteed income.