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  • FIRST POST
    • phykell
    • By phykell 10th Sep 18, 1:23 PM
    • 18Posts
    • 0Thanks
    phykell
    IFA Rubber Stamp
    • #1
    • 10th Sep 18, 1:23 PM
    IFA Rubber Stamp 10th Sep 18 at 1:23 PM
    Hi,

    I have a final salary pension but its ongoing management is an issue as any queries I have are dealt with very slowly, if at all. Although I may, in theory, lose some value if I transfer it out, Iím certain that I want to consolidate it with one of my other pensions. Unfortunately, itís claimed that because the transfer value exceeds a specific amount, legislation applies which requires me to show that I have taken the advice of an IFA. Can anyone suggest the quickest and most effective route? I imagine there will need to be a charge involved even if an IFA is effectively just rubber-stamping the transfer process.

    Thanks
Page 4
    • WillowCat
    • By WillowCat 14th Sep 18, 10:05 PM
    • 827 Posts
    • 999 Thanks
    WillowCat
    You don't feel that might have encouraged them to find reasons to recommend a transfer?
    Originally posted by Dox
    As I wanted a transfer anyway it was pretty irrelevant. For me, it was a box ticking exercise.
    • phykell
    • By phykell 17th Sep 18, 5:58 PM
    • 18 Posts
    • 0 Thanks
    phykell
    Yes, some final salary schemes have more generous transfer values than others.

    But, and this is the important bit, you can't transfer your final salary scheme to a different final salary scheme offering a higher transfer value.
    Originally posted by HappyHarry
    It wouldn’t be another final salary scheme - I was planning to move it to my company’s defined contribution workplace pension scheme or perhaps a SIPP (most likely). What I want is a pension that pays something more in accordance with the transfer value because, with my current DB scheme, it would take over forty years to recoup the transfer value at a retirement age of sixty; I’m sure I can do better with a SIPP, etc.
    Last edited by phykell; 17-09-2018 at 6:02 PM.
    • Malthusian
    • By Malthusian 18th Sep 18, 4:11 PM
    • 4,639 Posts
    • 7,414 Thanks
    Malthusian
    Is sixty the Normal Retirement Age?

    If not the annual pension at the NRA is what you should be comparing with. Given that you also have DC pensions, you will have the option of retiring at 60 and spending those down until the DB pension kicks in with no actuarial penalty.
    • phykell
    • By phykell 18th Sep 18, 6:29 PM
    • 18 Posts
    • 0 Thanks
    phykell
    Is sixty the Normal Retirement Age?

    If not the annual pension at the NRA is what you should be comparing with. Given that you also have DC pensions, you will have the option of retiring at 60 and spending those down until the DB pension kicks in with no actuarial penalty.
    Originally posted by Malthusian
    Yes - the NRA is 60 according to the transfer valuation.

    The transfer value does seem to be very generous at approximately 40x what the annual pension would be so I think now is definitely the right time to transfer out. It's a shame the need for IFA advice for values exceeding £30k isn't obviated when the transfer value exceeds a given multiple (say 30x) of the annual pension. Consequently, it looks as though it will cost me upwards of 1% of the transfer value to transfer out.
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