Good evening, I need some help with a possible Final Salary Pension Scheme Transfer.
I am 54, and my husband has just retired. I have 3 smaller pensions to the value of about £100,000. My main scheme is a Final Salary and I am thinking of taking it at 55. However I will probably still work part time. If I leave the pension where it is, at 55 I can get a lump sum of £67.5k and a pension of 10k per year.
The estimated transfer value is 498k and I am considering transferring to a drawdown arrangement. I work for an Investment Company and they offer Pension help, although it does seem to be more Wealth Management. I had the initial consultation with this Company today. However my issue is that they will make a recommendation re the transfer – but if they recommend not to transfer then I can not go ahead with them. The fee of 1% (£5k) still needs to be paid.
Obviously I will consider carefully the advice given, but if I go through this process and the recommendation is not to transfer then if I do decide to go ahead then I will need to do through the whole process again.
I looked into this 2 years ago with my previous employer and I decided not to proceed after getting the initial Transfer Value (which was 75k lower), but I do remember that if I decided to transfer regardless of the advice the Financial Advisor would proceed on my behalf
So my first question is this:
Is it usual for an Advisor to not assist with a Transfer if they recommend not to transfer?
As I said, I am prepared to pay for advice, however I know that the Advisor will err on the side of caution – which is understandable – but I feel that if I do decide to Transfer I will have to pay the first Advisor and still be in the same position.
Therefore the next question is 1% of the Transfer Value reasonable?
Any help would be most appreciated