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  • FIRST POST
    • Nickyh102
    • By Nickyh102 13th Jan 19, 3:28 PM
    • 1Posts
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    Nickyh102
    Transferring final salary pension
    • #1
    • 13th Jan 19, 3:28 PM
    Transferring final salary pension 13th Jan 19 at 3:28 PM
    I currently have 2 very old final salary pensions from companies I worked for many years ago. Both have a transfer value of under 30k. These are going to generate very small income when I am 60 and I wanted to transfer them to my current personal pension to give me more flexibility. As these are final salary my current pension provider won't let me transfer them without financial advise. My current financial advisor is quoting 2 to 3 k. Am I better trying to find a provider who will transfer them and opening up another pension?
Page 1
    • xylophone
    • By xylophone 13th Jan 19, 3:53 PM
    • 28,008 Posts
    • 16,893 Thanks
    xylophone
    • #2
    • 13th Jan 19, 3:53 PM
    • #2
    • 13th Jan 19, 3:53 PM
    Strictly speaking, as the value of the benefits on each of these pensions is under 30,000, you are not required to take the advice of a pension transfer specialist.

    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

    However, as you have found, some providers will not accept transfers in without.

    It may be possible to find a provider who will accept a transfer in (AJ Bell has been mentioned on the forum) and then proceed to transfer to your current scheme?
    • planteria
    • By planteria 13th Jan 19, 4:04 PM
    • 5,061 Posts
    • 1,123 Thanks
    planteria
    • #3
    • 13th Jan 19, 4:04 PM
    • #3
    • 13th Jan 19, 4:04 PM
    you could do that.. but my understanding is that the reason providers are reluctant to transfer in is that they would be open to criticism, as transfer a DB pension into a DC scheme is often not a good idea. even if the benefits will be small, perhaps just retaining them, with a guaranteed income, makes sense? -you can then do all you can to ensure that your personal pension is as subtantial as you want/need it to be.
    • rangersfc
    • By rangersfc 13th Jan 19, 4:17 PM
    • 67 Posts
    • 28 Thanks
    rangersfc
    • #4
    • 13th Jan 19, 4:17 PM
    • #4
    • 13th Jan 19, 4:17 PM
    Nickyh102,
    AJBELL were pain free and fee free when my spouse did a transfer. They are very helpful if you wish to contact them for information re your own circumstances
    Regards
    mrwmartin
    • atush
    • By atush 13th Jan 19, 4:24 PM
    • 17,419 Posts
    • 10,953 Thanks
    atush
    • #5
    • 13th Jan 19, 4:24 PM
    • #5
    • 13th Jan 19, 4:24 PM
    Are you sure, that the guaranteed rate retur will be better than transfering to a market volatility affected DC pension? For diversity sake, would it not be better to have a base level however low, of guaranteed income on which to build? What are the annual income, in todays terms (and the annual uplift) for each as compred o theCETV so we can better compare?

    Are you of good health?
    • dunstonh
    • By dunstonh 13th Jan 19, 5:00 PM
    • 96,442 Posts
    • 64,333 Thanks
    dunstonh
    • #6
    • 13th Jan 19, 5:00 PM
    • #6
    • 13th Jan 19, 5:00 PM
    My current financial advisor is quoting 2 to 3 k. Am I better trying to find a provider who will transfer them and opening up another pension?
    2k to 3k is good value.
    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.
    • kidmugsy
    • By kidmugsy 13th Jan 19, 6:46 PM
    • 12,400 Posts
    • 8,791 Thanks
    kidmugsy
    • #7
    • 13th Jan 19, 6:46 PM
    • #7
    • 13th Jan 19, 6:46 PM
    I currently have 2 very old final salary pensions
    Originally posted by Nickyh102
    Why does it matter that they are old?

    These are going to generate very small income when I am 60
    Originally posted by Nickyh102
    Don't be coy - tell us how much (and what the inflation-protection deal is).
    Free the dunston one next time too.
    • MallyGirl
    • By MallyGirl 13th Jan 19, 7:06 PM
    • 3,229 Posts
    • 8,296 Thanks
    MallyGirl
    • #8
    • 13th Jan 19, 7:06 PM
    • #8
    • 13th Jan 19, 7:06 PM
    Are you sure, that the guaranteed rate retur will be better than transfering to a market volatility affected DC pension? For diversity sake, would it not be better to have a base level however low, of guaranteed income on which to build? What are the annual income, in todays terms (and the annual uplift) for each as compred o theCETV so we can better compare?

    Are you of good health?
    Originally posted by atush
    I am keeping my only final salary pension for that reason- it is only 1600 pa but it is a base to build from. The CETV is 78k but I'd have to pay for advice to transfer plus there is a weird extra pot with 20k value (from payments made when I was under 25) which they say will provide extra benefits but they won't say what. Far too much hassle so I am leaving it to collect at 60.
    • planteria
    • By planteria 14th Jan 19, 8:35 PM
    • 5,061 Posts
    • 1,123 Thanks
    planteria
    • #9
    • 14th Jan 19, 8:35 PM
    • #9
    • 14th Jan 19, 8:35 PM
    sounds wise to me. i don't have any DB pension in place, but if i did i can't imagine transferring it.
    • Brynsam
    • By Brynsam 14th Jan 19, 10:43 PM
    • 1,746 Posts
    • 1,281 Thanks
    Brynsam
    Why does it matter that they are old?

    May be pre-revaluation days.

    Don't be coy - tell us how much (and what the inflation-protection deal is).We don't need to know to answer the question OP actually asked
    Originally posted by kidmugsy
    OP - transfer to a stakeholder pension and then you can should be able to transfer without difficulty (or an exit penalty) to your current pension provider, because the transfer they would then be accepting would be coming from a defined contribution scheme (the stakeholder pension).
    • atush
    • By atush 15th Jan 19, 2:14 PM
    • 17,419 Posts
    • 10,953 Thanks
    atush
    Sure they can do it as above, but I stick by my premise- that might not be the best thing to do. and it could be a much better idea not to transfer at all.

    And until the OP gives the details as asked, none of us will know.
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