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  • FIRST POST
    • KeredR
    • By KeredR 11th Apr 18, 10:50 AM
    • 2Posts
    • 0Thanks
    KeredR
    Small pension transfer
    • #1
    • 11th Apr 18, 10:50 AM
    Small pension transfer 11th Apr 18 at 10:50 AM
    Hi,

    I have an old pension pot which I was hoping to take a lump sum from. It is a defined benefit scheme so I need to transfer it in order to this. The pension pot is around 38,000 and so requires FCA registered financial advice before the transfer can be done but I cannot find anyone who will touch it. I have been told that there are advisors who will at a price but I have not yet had any luck finding one.

    Can anyone point me in the right direction? If I can't do the transfer, my only option is a small lump sum and a tiny income!

    Any help greatly appreciated.

    Thanks
Page 1
    • mgdavid
    • By mgdavid 11th Apr 18, 11:47 AM
    • 5,516 Posts
    • 4,820 Thanks
    mgdavid
    • #2
    • 11th Apr 18, 11:47 AM
    • #2
    • 11th Apr 18, 11:47 AM
    Hi,

    I have an old pension pot which I was hoping to take a lump sum from. It is a defined benefit scheme so I need to transfer it in order to this. The pension pot is around 38,000 and so requires FCA registered financial advice before the transfer can be done but I cannot find anyone who will touch it. I have been told that there are advisors who will at a price but I have not yet had any luck finding one.

    Can anyone point me in the right direction? If I can't do the transfer, my only option is a small lump sum and a tiny income!

    Any help greatly appreciated.

    Thanks
    Originally posted by KeredR
    Not surprising, as generally cashing in a DB pension is regarded as a mis-sale by the FOS if you change your mind and complain in a few years time. Therefore the IFA would be liable hence most avoid doing this type of business.
    Is this your only pension or do your retirement plans mean that you will be well off and don't need the income from this small one?
    If you do stick with it there may well be an option of no lump sum and a larger indexed pension.
    The questions that get the best answers are the questions that give most detail....
    • Pun
    • By Pun 11th Apr 18, 12:09 PM
    • 670 Posts
    • 562 Thanks
    Pun
    • #3
    • 11th Apr 18, 12:09 PM
    • #3
    • 11th Apr 18, 12:09 PM
    Have you tried LEBC Group? https://www.lebc-group.com/
    • dunstonh
    • By dunstonh 11th Apr 18, 1:11 PM
    • 92,172 Posts
    • 59,339 Thanks
    dunstonh
    • #4
    • 11th Apr 18, 1:11 PM
    • #4
    • 11th Apr 18, 1:11 PM
    The pension pot is around 38,000 and so requires FCA registered financial advice before the transfer can be done but I cannot find anyone who will touch it. I have been told that there are advisors who will at a price but I have not yet had any luck finding one.
    Only around 1 in 10 advisers hold the necessary permissions to do the transaction. So, if you phoned 3 firms, the odds are none of them would do it. If you phoned 10 firms, then 1 may do it. (of course, like any roll of the dice, you could get three in a row that do it).

    The second issue is that what you want to do is a very very high risk transaction that starts from the opening point that it is considered missold unless proven otherwise.

    Third issue is that you want it as a lump sum and not as an income. That increases the risk. It is probable that it is not a good advice to do that and is not a financially sound decision.

    Finally, DB transfers are the current hot potato with the FCA. Firms have been told that the FCA is going to sample check at least on DB transfer case from every firm that does them during this year. The FCA will pick the case. So, genuine firms are going to be on guard about doing things that are likely to be bad advice. Even if you are overruling the advice.
    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.
    • xylophone
    • By xylophone 11th Apr 18, 5:36 PM
    • 25,176 Posts
    • 14,825 Thanks
    xylophone
    • #5
    • 11th Apr 18, 5:36 PM
    • #5
    • 11th Apr 18, 5:36 PM
    https://www.moneyadviceservice.org.uk/en/articles/transferring-out-of-a-defined-benefit-pension-scheme

    The Money Advice Service has a retirement adviser directory you can use to draw up a shortlist.

    All the advisers and firms on the directory are regulated and will also show whether they have advisers who are qualified to deal with transfers from DB schemes.
    • Simple Man
    • By Simple Man 11th Apr 18, 7:27 PM
    • 15 Posts
    • 2 Thanks
    Simple Man
    • #6
    • 11th Apr 18, 7:27 PM
    • #6
    • 11th Apr 18, 7:27 PM
    Hi,

    I have an old pension pot which I was hoping to take a lump sum from. It is a defined benefit scheme so I need to transfer it in order to this. The pension pot is around 38,000 and so requires FCA registered financial advice before the transfer can be done but I cannot find anyone who will touch it. I have been told that there are advisors who will at a price but I have not yet had any luck finding one.

    Can anyone point me in the right direction? If I can't do the transfer, my only option is a small lump sum and a tiny income!

    Any help greatly appreciated.

    Thanks
    Originally posted by KeredR
    I am in the same boat and struggling to find anyone. I will let you know if I have a breakthrough - several firms who have been tipped here couldn't help me.
    • iro
    • By iro 15th Apr 18, 7:19 PM
    • 185 Posts
    • 1,232 Thanks
    iro
    • #7
    • 15th Apr 18, 7:19 PM
    • #7
    • 15th Apr 18, 7:19 PM
    Did my transfer last December thought they would tighten the rules which I believe they now have.

    Cost me 3% which is the price I had to pay for the freedom not to be at the whim of an employer from 30 years ago!
    Last edited by iro; 15-04-2018 at 7:21 PM.
    • Dox
    • By Dox 15th Apr 18, 7:38 PM
    • 352 Posts
    • 199 Thanks
    Dox
    • #8
    • 15th Apr 18, 7:38 PM
    • #8
    • 15th Apr 18, 7:38 PM
    Did my transfer last December thought they would tighten the rules which I believe they now have.

    Cost me 3% which is the price I had to pay for the freedom not to be at the whim of an employer from 30 years ago!
    Originally posted by iro
    Transfer out rules haven't changed since they were introduced in April 2015.

    You aren't 'at the whim' of a former employer. Your pension is governed by the rules of your particular (former) pension scheme and under the control of the trustees.
    • iro
    • By iro 15th Apr 18, 7:49 PM
    • 185 Posts
    • 1,232 Thanks
    iro
    • #9
    • 15th Apr 18, 7:49 PM
    • #9
    • 15th Apr 18, 7:49 PM
    Transfer out rules haven't changed since they were introduced in April 2015.

    You aren't 'at the whim' of a former employer. Your pension is governed by the rules of your particular (former) pension scheme and under the control of the trustees.
    Originally posted by Dox
    Really????

    https://www.theguardian.com/money/2017/oct/28/hsbc-pension-income-clawback

    https://www.fca.org.uk/news/press-releases/fca-announces-changes-advice-pension-transfers

    Very happy with 40x annual pension I suspect that with higher gilt yields that is not what you would get today.
    • dunstonh
    • By dunstonh 15th Apr 18, 11:12 PM
    • 92,172 Posts
    • 59,339 Thanks
    dunstonh
    Transfer out rules haven't changed since they were introduced in April 2015.
    And even then, they were just a few minor adjustments on rules that already existed prior to that.


    Really????

    https://www.theguardian.com/money/2017/oct/28/hsbc-pension-income-clawback

    https://www.fca.org.uk/news/press-releases/fca-announces-changes-advice-pension-transfers

    Very happy with 40x annual pension I suspect that with higher gilt yields that is not what you would get today.
    The consultations currently going on with the FCA are to further tweak administration issues and advice issues. Again, minor tweaks rather than wholesale changes.
    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.
    • iro
    • By iro 16th Apr 18, 7:43 AM
    • 185 Posts
    • 1,232 Thanks
    iro
    And even then, they were just a few minor adjustments on rules that already existed prior to that.




    The consultations currently going on with the FCA are to further tweak administration issues and advice issues. Again, minor tweaks rather than wholesale changes.
    Originally posted by dunstonh

    Switch from RPI to CPI?

    Tata steel?


    Not a worry for me anymore
    • Linton
    • By Linton 16th Apr 18, 8:29 AM
    • 9,333 Posts
    • 9,457 Thanks
    Linton
    Switch from RPI to CPI?

    Tata steel?


    Not a worry for me anymore
    Originally posted by iro
    I would have thought that inflation would be more of a worry. I assume that with the DB pension inflation matching was guaranteed. Having transferred out nothing is guaranteed.
    • iro
    • By iro 16th Apr 18, 8:40 AM
    • 185 Posts
    • 1,232 Thanks
    iro
    I would have thought that inflation would be more of a worry. I assume that with the DB pension inflation matching was guaranteed. Having transferred out nothing is guaranteed.
    Originally posted by Linton
    Do you now anything about my circumstances? thought not

    Just glad I did it whilst values were inflated.
    • dunstonh
    • By dunstonh 16th Apr 18, 10:31 AM
    • 92,172 Posts
    • 59,339 Thanks
    dunstonh
    Switch from RPI to CPI?

    Tata steel?


    Not a worry for me anymore
    Originally posted by iro
    Sorry. I thought you were talking about transfer rules.
    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.
    • iro
    • By iro 16th Apr 18, 4:00 PM
    • 185 Posts
    • 1,232 Thanks
    iro
    'The pension pot is around 38,000 and so requires FCA registered financial advice before the transfer can be done but I cannot find anyone who will touch it. I have been told that there are advisors who will at a price but I have not yet had any luck finding one.'

    I found one.
    • KeredR
    • By KeredR 23rd Apr 18, 2:29 PM
    • 2 Posts
    • 0 Thanks
    KeredR
    Who did it for you?

    Thanks
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