Help! Newbie needs advice

Noot_2

I have an occupational pension scheme (think that is the right wording) from an old employer. For whatever reason, they will not let the money stay where it is, and I have to either transfer to another provider, or take a settlement figure.

Basically, the transfer value is around £7.5k, and the settlement figure is £2k. Hmmm, wonder which one I'll go for..... :rolleyes:

Anyway, because of the rules regarding getting advice, I have to get advice on this before I can actually transfer. :rolleyes: :rolleyes:

I got the name of a local pension advisor through thisismoney.co.uk. They advised me and sent the forms off to Clerical Medical. A few days later, the pension advisor got back to me to say that she couldn't advise on the transfer because of the
type of fund it was. She sent me a letter to sign and send off to the provider, basically saying I was happy to go ahead. I thought that was it.

This morning, I get a letter back from Clerical Medical:

"
Clerical Medical has made the decision to only distribute our products through Independent Financial Advisors and we strongly support the use of the professional service that and advisor offers
"

So I need to see a "Professional" advisor to look into what's best for me - losing £5.5k or not! Hmmm.

I have a time limit on this, and if this is not done and dusted in 2 weeks (16t Feb I think), I will lose £5.5k.

Anyone recommend an advisor that can advise me in the Hinckley/Nuneaton/Coventry/Leicester area???

PS. I've just explained the situation to my 11 year old son, and he has advised to transfer to a pension fund and save £5.5k. :T

He knows what to do!!!!! Does that count as advice!!!???

I know this is all law and you have to get advise to make sure you're not being ripped off, but the process / law is getting in the way of common sense.

Can anyone offer any advice?

Thanks.

dunstonh

Clerical Medical has made the decision to only distribute our products through Independent Financial Advisors and we strongly support the use of the professional service that and advisor offers

That is almost universally the case when a final salary occupational pension scheme transfer is involved. Providers arent willing to take on the liability as figures show historically that in 9 out 10 cases, its not best advice to transfer.

A few days later, the pension advisor got back to me to say that she couldn't advise on the transfer because of the type of fund it was.

It would need an IFA with G60 or equivalent qualification and licence (if network member) and decision to do it themselves (for PI liability issues). I wont go near them. Not because of qualifications but because the cost of PI cover shoots up if you do final salary scheme transfers and its not worth it.

PS. I've just explained the situation to my 11 year old son, and he has advised to transfer to a pension fund and save £5.5k. :T

Did your son tell you if stakeholder pension, personal pension, SIPP or section 32 buy out bond was the best option? What did your son tell you to do regarding the GMP?

Retired_I.F.A.

the process / law is getting in the way of common sense.

TRUE. a

Figures show historically that in 9 out 10 cases, its not best advice to transfer.

FALSE. b

the cost of PI cover shoots up if you do final salary scheme transfers and its not worth it.

FALSE. c

Dunstonh enjoys typing far moe than me so before we get into an arguement that could possibly go on forever I'll say no more till he reads and has a little think about a b and c and posts again.

In the meantime have a looksee at the thread: Who are the cowboys?
http://forums.moneysavingexpert.com/showthread.html?t=716315

EdInvestor

Noot wrote: »

I have an occupational pension scheme (think that is the right wording) from an old employer. For whatever reason, they will not let the money stay where it is, and I have to either transfer to another provider, or take a settlement figure.

Is this a 'final salary' or 'money purchase' type of occupational pension?

Did you work for this employer for less than 2 years?

Noot_2

EdInvestor wrote: »

Is this a 'final salary' or 'money purchase' type of occupational pension?

Did you work for this employer for less than 2 years?

It's not a final salary scheme - not sure if what type it was. I was in the scheme for around 2.5 years. It was one of those "lifestyle" pensions through KPMG.

I'll be phoning Clerical Medical first thing on Monday to see if we can get this ironed out - otherwise I'll be hunting around for new advisors.

dunstonh wrote:

Did your son tell you if stakeholder pension, personal pension, SIPP or section 32 buy out bond was the best option? What did your son tell you to do regarding the GMP?

Funnily enough he didn't :rolleyes: I don't know what I'm talking about when it comes to pensions, which is why I came here - for advice, not sarcastic comments. What I was trying to get across was my frustration in that I just need the money transfered to a pension scheme to avoid me losing money. I know some are better than others, and some will charge more than others, but I just need it done. If I don't get the best advice, I'm not going to lose £5.5k out of £7.5k - or am I? :eek:

Can anyone recommend any decent advisors in the Midlands area who can advise on this sort of transfer? Leicester / Coventry / Northampton / Tamworth areas would all be fine.

dunstonh

It's not a final salary scheme - not sure if what type it was. I was in the scheme for around 2.5 years. It was one of those "lifestyle" pensions through KPMG.

If its not final salary then there is no reason for it to be rejected. Although CM would want an IFAs agent number on the application as it has to be sourced through an FSA authorised firm as CM dont take business direct.

Funnily enough he didn't :rolleyes: I don't know what I'm talking about when it comes to pensions, which is why I came here - for advice, not sarcastic comments.

I only answered using the same examples you gave.

If you dont want advice, you dont need it. Just go execution only and as its not a final salary scheme it wont matter. Cavendish or HL will do execution only on this scheme.

Noot_2

dunstonh wrote: »

If you dont want advice, you dont need it. Just go execution only and as its not a final salary scheme it wont matter. Cavendish or HL will do execution only on this scheme.

What is "execution only"?

Are these the right people (Cavendish and HL?):

http://www.cavendishonline.co.uk/COL/Media/articles/moneywisefeb03.htm
http://www.h-l.co.uk/about_us/our_awards.hl


I've spoken to a Financial Advisor up in Sheffield (I work in Sheffield), and he suggested speaking to KPMG (who the original pension is with/through) and ask if they can be flexible on the transfer deadline. I've spoken to them, and they are okay with this which is excellent :T This has bought me more time, and no need for a big rush to get things sorted in the next few days.


PS. I've just googled "Execution Only" and if I understand correctly - it looks like as I'm choosing the provider myself, there would be no come-back / protection if the pension went all wrong. Am I on the right track?

dunstonh

You are on the correct track and the IFAs you link are correct. Just for clarification, they are IFAs with a website who take execution only business online.