Fee to transfer DB pension to SIPP

In case you are not aware many pension providers will not accept DB transfers , if the IFA recommendation is negative . Legally it should be OK if the IFA was qualified etc but many large pension providers will just not touch anything where there is a chance of some blowback at some point in the future .

stocklord wrote: »

Hi
I have been researching IFA fees for transfer advice in relation to my DB pension (CETV of £750,000), and wondered if anyone had any advice. Most specialists seem to charge around 1% of the value, but have not come across any flat fixed fees apart from one, First Equitable, costing £1450 up front for the report, whether positive or negative, and if positive a further £950 to implement the transfer, with no ongoing servicing obligation. This seems ludicrously cheap compared to everyone else - would welcome your thoughts and any recommendations.
Thanks.

FYI

Some SIPP providers will accept an insistent client irrespective of a negative report from an IFA. Interactive Investor and HL won't I believe, but AJ Bell does, amongst others.

It's a while since I checked so DYOR.

Personally I wasn't too worried about getting the cheapest initial transfer fee as it is only a one off fee. I have found that the whole pension pot value regularly moves up or down more than the value of the transfer fee - sometimes in a single day. I was much more interested in keeping ongoing advisor and platform fees down.

Another point to bear in mind in relation to transfer fees split between up front and implementation is that in my case the up front part was post tax whereas the transfer part was pre tax. So in the case of the £1,450 / £950 figures quoted the £950 part would only really cost £760 post 20% tax or even less if higher rates of tax (like 40% or 55%) are expected in retirement.

Malthusian wrote: »

Authorised for just over a year. No requirement for ongoing servicing indicates a devil-may-care attitude as it significantly increases the risk to the adviser. The website talks big but in reality it's a one-man band, Samuel Hulson, who appears to have no history on the FCA register prior to 2016. I see no smoking guns but proceed with extreme caution.

What investments have they proposed you transfer into?

Why do you want to transfer?

None of that's going to matter though, if all you need is a letter confirming you took the required advice, is it? Perhaps you have a point if you're looking for a longer term relationship.