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    • mwhit
    • By mwhit 15th Nov 19, 5:50 PM
    • 11Posts
    • 3Thanks
    Minimal IFA costs, transferring to SIPP
    • #1
    • 15th Nov 19, 5:50 PM
    Minimal IFA costs, transferring to SIPP 15th Nov 19 at 5:50 PM
    I have initiated transfer out of a Deferred Annuity scheme in order to be able to access the tax-free sum.

    However, the original provider requires an IFA sign-off, which appears to come at great cost; hopefully not up-front.

    All I require is the sign-off, no advice - what's the best way to request the paperwork without incurring expensive work ? And minimise amount I lose.

Page 2
    • Malthusian
    • By Malthusian 18th Nov 19, 11:45 AM
    • 7,081 Posts
    • 11,421 Thanks
    That was to engage HL incurring the review cost only, irrespective of the recommendation.
    Originally posted by cloud_dog
    As per ZZ, this doesn't work. If I understand correctly HL's "review" is only a review, not a full recommendation. And the full recommendation is needed before they will provide the sign-off.

    What HL call a "review" would be called by other advisers "triage" or "fact-finding" and would be done for free.

    (This is not the "contingent charging" debate. Contingent charging is when you charge if the advice is "go for it" but if it's "do nothing" the advice is free. Free introductory fact-finding is to find out whether it is worth you paying for any kind of advice at all.)

    The idea of compelling clients to buy expensive advice from a financial adviser was a worthy one, but it only works if the adviser is acting for the client rather than himself.
    by ZingPowZing
    All advisers act for both, same as any other professional. Unless they are dodgy. If they claim they aren't acting in their own interests they are definitely dodgy. If they are processing defined benefit cases by the bucketload because they have a cardboard sign in their window saying "Will help you cash in your DB scheme for cheap, never knowingly said no", they are also dodgy.
    • john-306
    • By john-306 18th Nov 19, 4:56 PM
    • 642 Posts
    • 138 Thanks
    If you have enough years left before scheme retirement age keep asking for the CETV as often as you can with no charge.

    If it falls you will be under the 30k advice limit, if it increases you'll have a bit more of a margin but unfortunately you are in the zone where it probably isn't cost effective to transfer.

    What annual pension does it pay, is a transfer even a reasonable idea.
    Originally posted by AlanP
    Only 1800 pa, as you say not worth it
    • SonOf
    • By SonOf 18th Nov 19, 5:00 PM
    • 1,892 Posts
    • 2,150 Thanks
    Only 1800 pa, as you say not worth it
    Originally posted by john-306
    Is that in addition to pension commencement lump sum or without it?
    • john-306
    • By john-306 18th Nov 19, 8:04 PM
    • 642 Posts
    • 138 Thanks
    Is that in addition to pension commencement lump sum or without it?
    Originally posted by SonOf
    Without it.
    • JoeCrystal
    • By JoeCrystal 19th Nov 19, 6:05 AM
    • 1,987 Posts
    • 1,411 Thanks
    Only 1800 pa, as you say not worth it
    Originally posted by john-306
    If you are saying that you get 32,000 in transfer value in exchange of giving that up, then the rate is dire. It is only 17 times the pension.

    The cost of getting 1,800 annuity depending on the ages and so on but it is significantly more than the transfer value you would get. It would be 35k if you opt for a level single annuity from 65 to 65k if you opt for single life RPI linked.
    • Albermarle
    • By Albermarle 19th Nov 19, 12:16 PM
    • 1,859 Posts
    • 1,197 Thanks
    one of my 2 DB pensions has only 32k in it.
    Your DB pot does not actually have 32K in it

    It is better to think of it this way >> I have a DB pension that will pay 1.8K pa guaranteed income for the rest of my life when I retire , most likely linked to inflation and it will pay around 1K pa to my spouse if I die first.
    To escape their future liabilities the pension provider wants to buy me out of the scheme by offering the temptation of a lump sum , which today happens to be 32K , which is totally inadequate and a poor offer.
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