Stay in Railway Pension or transfer to SIPP
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classyb
Posts: 3 Newbie
I do not know a lot about pensions, but have just had a pension review with First Review Pension Sevices who have advised me to transfer my £74,000 from my Railway pension (I am no longer a member) into a SIPP investing in propery development LLana Beach Hotel. I am getting cold feet should I keep my money in the Railway where at least it is safe. I have lost over £30,000 in timeshare over the years and could not bear to end up wth no money when I retire
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The RPS is probably one of the very best pensions schemes there were.
I would take independant financial advice if I were you immediately, and I'd be very surprised if it came out in favour of the SIPP.
I'm a RPS ex pensioner too and have 15 years of contributions in, my financial advisor told me no one could match a final salary non contrib. pension like that with any sort of 'vehicle' so I doubt your SIPP could.Unless specifically stated all posts by me are my own considered opinion.
If you don't like my opinion feel free to respond with your own.0 -
I do not know a lot about pensions, but have just had a pension review with First Review Pension Sevices who have advised me to transfer my £74,000 from my Railway pension (I am no longer a member) into a SIPP investing in propery development LLana Beach Hotel. I am getting cold feet should I keep my money in the Railway where at least it is safe. I have lost over £30,000 in timeshare over the years and could not bear to end up wth no money when I retire
Let me guess, they have mentioned some type of guaranteed return? Maybe even that they can "unlock" some of the cash in your pension?. Do not transfer it - simple as that. It will end up costing you an awful lot of money, and there will be little to show for it.
Your Railway pension is a Final Salary pension, which will provide you with a known on benefit on retirement. It would be virtually impossible to find an IFA who would recommend such a transfer to a "standard" SIPP/Personal Pension, let alone to such a high risk one as this.
I cannot re-iterate strongly enough, do not take the advice they have given, keep your Railway Pension.I am an IFA. Any comments made on this forum are provided for information only and should not be construed as advice. Should you need advice on a specific area then please consult a local IFA.0 -
I do not know a lot about pensions, but have just had a pension review with First Review Pension Sevices who have advised me to transfer my £74,000 from my Railway pension (I am no longer a member) into a SIPP investing in propery development LLana Beach Hotel. I am getting cold feet should I keep my money in the Railway where at least it is safe. I have lost over £30,000 in timeshare over the years and could not bear to end up wth no money when I retire
Be very careful!!!!! I believe you are fortunate that your feet cooled prior to parting with your pension.
These property schemes tend to be very high risk and outside the protection of the FSA regulations and compensation arrangements. If they failed you would be on your own. The FSA have issued warnings about sales to unsophisticated investors of the type of product being offered to you and are proposing to ban them. It does not surprise me that First Review Pension Services do not appear to be on the FSA list of companies authorised to give investment advice.
Your Railway Pension being Final Salary is probably very valuable - the transfer value is unlikely to match the cost on the open market of providing equivalent benefits.0 -
See this thread.
http://forums.moneysavingexpert.com/showthread.php?t4299979&page=1
These schemes are the timeshares of the pensions world!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
but have just had a pension review with First Review Pension Sevices who have advised me to transfer my £74,000 from my Railway pension (I am no longer a member) into a SIPP investing in propery development LLana Beach Hotel.
OMG. What a terrible idea. You have a nice stable pension scheme with the Railways and you are seeking advice from someone that is not authorised to give advice in the UK to invest in an unregulated scheme using unregulated assets in a foreign country. This is got scam written all over it.
Why on earth are you taking advice from unregulated individuals? (First Review Pension Services are not regulated to give pension advice) most scams use unregulated individuals investing in weird and whacky unregulated schemes in foreign countries.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Just to repeat the earlier messages - this sounds like at best a really really bad idea and at worst a scam. A defined benefit/final salary pension scheme with index-linked benefits is worth its weight in gold (I know that I'm fortunate to have one) - do not go down this route.0
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gadgetmind wrote: »See this thread.
http://forums.moneysavingexpert.com/showthread.php?t4299979&page=1
These schemes are the timeshares of the pensions world!
This thread has been taken down. That particular 'scheme' was even worse than we thought (based on a PM I received).
Anyway, I sometimes wonder if this is trolling (google it if you're not sure what that word means).
How can someone be that stupid. Really?
(or am I being too harsh?)0 -
This thread has been taken down
Wow, that was recent because I checked it before posting.
Many of these threads serve as dire warnings and it's a shame they aren't left for posterity.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Concerned we haven't heard from ClassyB. Hope he hasn't done this already. If by chance you have classyB remember there might be a way to use a cooling off period.
So annoying society holds such scum that these threads are even needed
I believe past performance is a good guide to future performance :beer:0 -
I'm in RPI, I think I would laugh in anybody's face that suggested this switch...0
This discussion has been closed.
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