Pension Planning...
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bigalxyz
Posts: 58 Forumite
Hello forum,
I'm in the middle of having a close look at my pension arrangements to look at the pros & cons of various options available to me.
I've got a number of DB (final salary) and DC pension pots.
My first thought was that I should leave the DB stuff where it is, and concentrate on the pros & cons of transferring my DC pots into a suitable low cost SIPP arrangement. Possible expense savings & more flexibility, etc.
However I'm now thinking of looking at transferring out of the DB pots as well. Controversial topic and I gather some people have been given very iffy advice on this. In my particular case though (48yo, in quite poor health and unmarried), the value to me of the future DB pension might be quite a lot less than for the typical 48yo scheme member, which might tilt things in favour of a move out.
A reputable IFA has quoted £2,000 for a full review of all this stuff (and various "lifestyle planning" type projections). I'm not sure if this is a competitive price - does anyone have any thoughts? At any rate I gather than for DB pots > £30k (which mine all are), IFA advice is mandatory before transferring out, so the option to weigh up the odds myself & make my own decision doesn't exist - so I'm probably going to have to pay *someone* a four figure sum!
Is £2k a sensible price for this sort of thing?
(IFA also punted other fees going forward for investment advice, etc. but I'll give all that a miss - I'm quite confident in my ability to do that stuff myself)
Does anyone have any particular IFA recommendations (in terms of competitive prices and/or good quality advice)?
Grateful for anybody's thoughts/comments.
Thanks,
A.
I'm in the middle of having a close look at my pension arrangements to look at the pros & cons of various options available to me.
I've got a number of DB (final salary) and DC pension pots.
My first thought was that I should leave the DB stuff where it is, and concentrate on the pros & cons of transferring my DC pots into a suitable low cost SIPP arrangement. Possible expense savings & more flexibility, etc.
However I'm now thinking of looking at transferring out of the DB pots as well. Controversial topic and I gather some people have been given very iffy advice on this. In my particular case though (48yo, in quite poor health and unmarried), the value to me of the future DB pension might be quite a lot less than for the typical 48yo scheme member, which might tilt things in favour of a move out.
A reputable IFA has quoted £2,000 for a full review of all this stuff (and various "lifestyle planning" type projections). I'm not sure if this is a competitive price - does anyone have any thoughts? At any rate I gather than for DB pots > £30k (which mine all are), IFA advice is mandatory before transferring out, so the option to weigh up the odds myself & make my own decision doesn't exist - so I'm probably going to have to pay *someone* a four figure sum!
Is £2k a sensible price for this sort of thing?
(IFA also punted other fees going forward for investment advice, etc. but I'll give all that a miss - I'm quite confident in my ability to do that stuff myself)
Does anyone have any particular IFA recommendations (in terms of competitive prices and/or good quality advice)?
Grateful for anybody's thoughts/comments.
Thanks,
A.
0
Comments
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Just check that the £2k includes the analysis work required and that the IFA is qualified to the right level to advise on DB transfers - not all are.
From your personal circumstances it sounds like a route worth exploring, the spouse benefit is a big one with DB schemes.
You could mix & match - keep some DB, which with your SP, would give you enough for your essentials and transfer the rest possibly.
£2k sounds like a good price compared to many comments on here.0 -
Thanks.
Yes the £2k would include the analysis for all the DB and DC schemes. If it was DC alone I wouldn't bother but I guess the calcs for DB transfers are tricky and need careful consideration.
As for the IFA being suitably qualified for this stuff - I would think so but I'm not sure. How could I check? (I could just ask him I suppose!)
I note your comment re: £2k not being a bad price.
Rgds
Alan.0 -
As for the IFA being suitably qualified for this stuff - I would think so but I'm not sure. How could I check? (I could just ask him I suppose!)
Check here: https://register.fca.org.uk/ShPo_Homepage If he isn't on the register he certainly can't give the advice - and the DB scheme from which you are trying to transfer will make their own independent check at the point of transfer, so really important to establish at the outset that he is on the register. If he isn't the transfer won't go through.0 -
Thanks. The firm is on there yes -
"Status: authorised
This is a firm that is given permission to provide regulated products and services"0 -
Ah ok...had a look and it says:
============
Advising on Pension Transfers and Pension Opt Outs
Customer Type
Professional
Retail (Investment)
Investment Type
Life Policy
Personal pension scheme
Rights to or interests in investments (Contractually Based Investments)
Rights to or interests in investments (Security)
Stakeholder pension scheme
Unit
Limitation
Rights to or interests in (both).
=============
Is that all in order?0 -
Is the individual who will be giving the advice named on the register? He needs to be. Just having the firm's name isn't enough.0
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Yes - I've just checked and he's on there.0
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Check if the £2000 actually includes the cost of implementing any transfer too. Some advisers charge a fee for all the analysis work then extra for actually carrying out transfer.(IFA also punted other fees going forward for investment advice, etc. but I'll give all that a miss - I'm quite confident in my ability to do that stuff myself)
Many advisers won't advise people who want to manage their own funds. And if the recommended transfer is to a provider that only deals with IFAs, you may have to transfer again to manage it for yourself.0 -
The £2k fee is research/analysis/recommendations alone. Doesn't include any implentation work. If I wanted them to do that I'd have to pay them some more, but I think I can manage that myself fairly easily. Also doesn't include any ongoing investment advice.
I haven't posed the question of whether or not they will advise me if I want to manage my own funds. That would be a deal breaker for me - I would walk away if they insist on managing the funds for me. Ain't paying for that when - again - I can do it myself.0
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