GMP Transfer
Iansmoney
Posts: 2 Newbie
Hi. I have a GMP from a contracted out Barclays DB scheme transfer value is about £35500. I have other income so want to transfer this to my SIPP with HL. My plan is to draw max tax free cash and drawdown the income until it runs out in about 10 years. For this reason the transfer would go into cash in the SIPP. The scheme is quoting income of £147 pm gross so I feel I want to control this money. I’ve been quoted £1450 fee plus 2% of the transfer value. On a small fund this does seem pretty steep. I would rather use HL as I have existing funds with them but wonder if I should get it transferred to someone else’s SIPP and simply draw the TFC and income from them. They say it’s a legal requirement to get advice before they will allow the transfer so I seem to have no choice. Any help/thoughts please.
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Comments
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Yes, it is a legal requirement to get advice as you are transferring more than £30,000 from a DB scheme to a defined contribution scheme. I can understand why you feel the fees are on the steep side 'on a small fund' - but the reality is that the adviser has to do a similar amount of work regardless of whether the fund is £35,000 or £350,000. Shop around by all means, but you probably won't find anyone who will do it for less.0
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The scheme is quoting income of £147 pm gross so I feel I want to control this money.
Is that a real or realistic income figure or the ridiculous projection assumptions used on current statements?I!!!8217;ve been quoted £1450 fee plus 2% of the transfer value. On a small fund this does seem pretty steep.
Not really. Its a high risk transaction. Requires a specialist adviser and you want to put it in an expensive SIPP to DIY. Lots of risks there.They say it!!!8217;s a legal requirement to get advice before they will allow the transfer so I seem to have no choice.
It is a requirement as it is a safeguarded benefit and the value is over £30,000I 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 -
Many thanks for the replies. Better the devil I know I guess!0
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