Financial adviser for a DB transfer

Carrot49

Afternoon. I'm looking for recommendations for a financial adviser to sign off on a final salary transfer to a sipp. I've try the government's unbiased. Co.uk but all I get is spam. TIA

Yorkie1

I can't suggest anyone, but are you aware that: the charges are likely to be in the £5K+ range; the advice will almost certainly be against transfer; and that, as a result, you will have to do the transfer to a stakeholder pension in the first instance (as no other SIPP is likely to accept a DB transfer against full advice)?

Edit: I think you probably are aware, from

https://forums.moneysavingexpert.com/discussion/6613410/final-salary-transfer-value

.

JoeCrystal

Keep on looking, you should come across an IFA eventually, they are rare as hen's teeth and if course. you will pay exactly the same fees regardless of the outcome. Very very expensive fees, even five digits if they think your workload is a hassle so will price it so high that they really don't want to touch a case that more likely or not that you will complain as soon something look ever so slightly wrong and have massive remorse.

Indeed, I vaguely recalled one topic where poster did promised and fully know what he is doing and read all the paperworks. A year or few years later, posted that he is complaining because ud didn't realised that investments will fall and he might make a loss on it;

What do you mean by Spam? Have you actually got in touch with them and you just didn't like the answer or find their fees merely too high?

Very important note, you should not be looking for IFA to 'merely' sign off the transfer. Basically, you are looking for an IFA who can do the work and if you got stakeholder pension, be able to transfer to that (as legally FORCED by law). After all, if you haven't got stakeholder pension, it is very difficult to transfer against adviser's negative suitability report since there is hardly anyone willing to accept such potential bomb of liabilities. Especially with regulators thinking the customers are the most stupidest of all therefore it is not customers faults.

bjorn_toby_wilde

Unbiased is not a government website btw.

It’s a privately owned directory site which generates leads for financial advisers (independent or otherwise).

dunstonh

https://forums.moneysavingexpert.com/discussion/6670686/financial-adviser-for-a-db-transfer

Unbiased is not a government website. It's not even an IFA website anymore. It's a lead generation site for mostly sales forces.

I'm looking for recommendations for a financial adviser to sign off on a final salary transfer to a sipp.

Ever since DB CETVs more than halved in value from their peak. The market for DB transfer advice, died a death. Plus, the PI insurers took a dislike to it because of the FCA's generally negative approach to transfers. It means that nowadays only about 1 in 10 are suitable for transfer. And given the level of work involved, there's not a lot of money to be made telling nine out of ten people that they shouldn't transfer.

The most common model nowadays seems to be referring it to one of the third parties and letting them handle it, hoping that the economies of scale make up for it.

We need to be clear that no financial advisor is just going to sign off on the transfer. It's an intensive advice process with lots of time required by you and the advisor. Statistically, you are going to be told that you are unsuitable for transfer. You may fall in that one in ten, but statistically that's unlikely.

It's also worth noting that if the advice is not to transfer the pension, then you are still liable to pay the fee, and that cannot be taken from the pension. You will have to pay it directly yourself. And typically fees tend to be in the 5k plus range.

Why are you considering transferring a DB pension now when it's probably the worst time in nearly 20 years to do so?

Carrot49

https://forums.moneysavingexpert.com/discussion/comment/82019469#Comment_82019469

I feel a bit of background might help. I'm 59. My wife has dementia. I have a small pension that I am currently using for day to day expenses. I have a final salary pension that I was looking to transfer to a personal pension and use as a drawdown fund. To take the final salary pension from the provider now would incur a reduction of 50% of the value. This is why i was looking at a transfer and not just taking the pension at the reduced rate. The last valuation I had was about a year ago at 120k. Unfortunately world events aren't helping.

Cobbler_tone

https://forums.moneysavingexpert.com/discussion/comment/82019831#Comment_82019831

It sounds as though you have a lot going on in a challenging situation. Have you tried seeking some advice around your circumstances in terms of any help available and options regarding financial planning/support? Not just for your immediate needs but for the future. All the best.

xylophone

You could try

https://adviserbook.co.uk/

You would tick confirmed independent and pension transfer when the menu comes up, then that the firm has a pension transfer specialist.

dunstonh

To take the final salary pension from the provider now would incur a reduction of 50% of the value. 

Its worth noting that your CETV is likely more than 50% lower than it was 5 years ago. So, by transferring it now, you would also have seen a 50% reduction.

To take the final salary pension from the provider now would incur a reduction of 50% of the value. This is why i was looking at a transfer and not just taking the pension at the reduced rate. The last valuation I had was about a year ago at 120k. Unfortunately world events aren't helping.

And have you compared the annuity rate or drawdown rate required to match the DB pension?

Drawdown on £120k would be around £4080 p.a. using a sustainable draw rate at age 59 (assuming no lump sum drawn). How does that compare with the DB pension?

QrizB

How does that compare with the DB pension?

In a previous thread the OP said that the pension was worth £7.5k pa at an NPA if 65, with a GMP element indexed by CPI and capped at 2.5%, with the excess above GMP indexed by RPI and capped at 5%.

To take the final salary pension from the provider now would incur a reduction of 50% of the value.

50% reduction sounds a lot for someone of 59 with an NPA of 65. I'd expect closer to 30%.

Albermarle

50% reduction sounds a lot for someone of 59 with an NPA of 65. I'd expect closer to 30%.

Or even 25%.