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  • FIRST POST
    • ChrisSargent
    • By ChrisSargent 9th Mar 17, 2:50 PM
    • 24Posts
    • 1Thanks
    ChrisSargent
    Tranferring Old Pension
    • #1
    • 9th Mar 17, 2:50 PM
    Tranferring Old Pension 9th Mar 17 at 2:50 PM
    I have managed to trace an old works pension with a transfer value of 126.5k
    I now want to transfer it into my current pension so that it keeps working and earning but both the old scheme and my current provider tell me that I need to show that I have taken financial advice before they will let me do the transfer.
    I have contacted a couple of IFA's and they want upwards of 950 to give advice and provide a letter as proof.
    I am also in the process of trying to trace down 2 other old pension pots.
    My questions are:
    1. do I really need to prove I have had financial advice? and if I do..
    2. am I better waiting until I can find the other old pots and doing it all in one go? or is there a limit on how much I can transfer in?
    Thanks in advance


    Chris
Page 2
    • dunstonh
    • By dunstonh 13th Mar 17, 2:34 PM
    • 92,596 Posts
    • 59,911 Thanks
    dunstonh
    can you expand on this? How can it be paid from the pension? I have now found a local IFA who is doing a free first consultation and he has also hinted that costs of any further advice/meeting might be able to be paid from the pension.
    Thanks
    Originally posted by ChrisSargent
    If you write a cheque for 1000 to the adviser then it has cost you 1000.

    However, if taken from the pension and you are a basic rate taxpayer then the money in the pension has had tax relief. i.e. 1000 contributed to the pension has cost 800 if basic rate taxpayer or 600 if higher rate. So, either pay it from the pension or add the 1000 (gross) to to the pension first to get tax relief on the advice charge.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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