Transfering DB to SIPP

bostonerimus · 23 September 2017 at 1:50PM

With 483k you could buy a joint life time annuity at age 55 of 18k a year. Again the current CETV and the pension at age 55 don't seem sensible. If you can get 483k and are conservative an annuity looks like a better option than the pension. Also you might consider taking the CETV and putting it in a savings bond ladder which will give you around 2% at todays rates and you'll be able to take advantage of any interest rate increases as the bonds mature. You might also think about a ladder of fixed term annuities. This you be your fixed income allocation and go 100% equities with the rest of your portfolio.

pip895 · 24 September 2017 at 2:36PM

Well I have taken a tentative first step and filled in my first "Risk Questionnaire" as the first step towards getting the advice necessary to convert the DB into my SIPP. I can confirm that it was a lot more sensible than the last one I filled in.

I am not by any means 100% sure I will go ahead but I am certainly leaning in that direction.

pip895 · 3 October 2017 at 12:47PM

So far I have spoken to two advisors one over the phone and the other face to face and neither is willing to sign off on a transfer to HL, although they have indicated that they would "probably" recommend a transfer.

Their costs are less than using the HL advisory service but by the time you add additional ongoing yearly costs (platform and advice) they work out more expensive after only one year. Is keeping control of the money a common restriction?

gonedownthepub · 3 October 2017 at 1:16PM

Hi
Been trying to transfer my DB pension this year-missed the initial 3 month CETV window in May (for various reasons) so paid for a 2nd CETV last month and to my surprise the transfer value has increased by 26% as the scheme trustees " were keen to give members a better deal?!"
So each scheme really has it`s own agenda depending on liabilities moving forward and long term fund sustainability.

dunstonh · 3 October 2017 at 1:45PM

So far I have spoken to two advisors one over the phone and the other face to face and neither is willing to sign off on a transfer to HL, although they have indicated that they would "probably" recommend a transfer.

HL is expensive compared to what IFAs have available. They also do not deal with IFAs. So, an IFA could not be giving best advice by using HL.

but by the time you add additional ongoing yearly costs (platform and advice) they work out more expensive after only one year.

Ongoing advice is optional. If you say you dont want it, they can make an appropriate recommendation on that basis.

Is keeping control of the money a common restriction?

There is no such restriction.

Some FAs will have a business model that is totally built around ongoing servicing. However, IFAs cannot insist upon it. Although expect a different recommendation if you do.

Malthusian · 3 October 2017 at 4:15PM

pip895 wrote: »

Their costs are less than using the HL advisory service but by the time you add additional ongoing yearly costs (platform and advice) they work out more expensive after only one year. Is keeping control of the money a common restriction?

If the adviser doesn't know what the pension's going to be invested in then the advice to transfer out is automatically unsuitable. This point has been established repeatedly in past Financial Ombudsman cases.

So any adviser is taking a massive risk by recommending a transfer, or just signing off on one, if they don't have control over what the money will be invested in at the other end.

soulsaver · 3 October 2017 at 4:36PM

I transferred a similar amount last year.. I paid £2500 including initial consultation - which was in effect free - no ongoing advice charges.

I've helped several others after watching them being told the same justification from the interested parties on here.

PM me if you want the detail - I'm not commercially connected with the IFA ... but it isn't as easy as just ringing up.

And I found more than one who would do it at that price.

Here is one thnx in my PM in-box now..

"Thanks for your help.

It all went fine, we paid £2500 for the signatures of the IFA. The CETV arrived in the SIPP last week.

I did the transfer myself as it seemed less open to fraud.

Ta"

soulsaver · 3 October 2017 at 4:42PM

And see here for more competitive advice:
see posts #23 and note post #24..

http://forums.moneysavingexpert.com/showthread.php?t=5606039&page=2

pip895 · 3 October 2017 at 9:19PM

dunstonh wrote: »

HL is expensive compared to what IFAs have available. They also do not deal with IFAs. So, an IFA could not be giving best advice by using HL.

The figures I was given were for Standard life and they were more expensive than the deal I have with HL?? Then I had to pay another 1% ongoing fee to them, for ongoing advice.

dunstonh wrote: »

Ongoing advice is optional. If you say you dont want it, they can make an appropriate recommendation on that basis.

Interesting so they would for instance say that the move was "too risky" if I was self managing... Could I still take that report to HL and say "I've taken advice but I have decided to ignore it" or do you have to go with the advice? I have a feeling you do in practice as I seem to remember HL saying that if their advisors were against the move then they wouldn't accept the transfer.

Alternatively could I go along with the advisors suggestion and get a positive recommendation to move but at the last minute divert the money to HL? Would HL be allowed to accept the money even if the recommendation was for it to go to Standard Life?? Or in practice would the DB pension people veto any such move.

The final option is to let the transfer go through to SL and then promptly turn round and say I want to transfer to HL. Seems messy though and there might be charges to do it.

It might be a small percentage of the total monies but I think £4000.00+ is worth fighting for.

Brynsam · 3 October 2017 at 11:51PM

gonedownthepub wrote: »

Hi
Been trying to transfer my DB pension this year-missed the initial 3 month CETV window in May (for various reasons) so paid for a 2nd CETV last month and to my surprise the transfer value has increased by 26% as the scheme trustees " were keen to give members a better deal?!"
So each scheme really has it`s own agenda depending on liabilities moving forward and long term fund sustainability.

The scheme trustees " were keen to give members a better deal?!" - I wonder who on earth spun you that line...

Transfering DB to SIPP

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