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Original poster

Pensions

26 replies

callitaspade · 17/09/2017 22:05

Moving a final salary ( defined benefits) into a stakeholder or endowment policy.
How do I know who to trust ? The law states I must take independent financial advice if the pension pot s over 30k. How do know who to trust ?

OP posts:
Spinningpenny · 17/09/2017 22:11

Look on a website called unbiased, and find an ifa near you, maybe look at a few to find one you are comfortable with.

It is very important to get advice when looking at db transfers as the benefits you are letting go of are very valuable.

You need to be careful when looking at advisers that they are qualified to give advice on defind benefit transfers as many aren't.

plexie · 17/09/2017 22:14

Why do you want to move from a defined benefits scheme into one with no guarantee of what you will receive? I've only ever seen advice that defined benefits schemes are better and it's unwise to transfer out. What are your circumstances?

AJPTaylor · 17/09/2017 22:16

You have to take advice cos generally speaking its a terrible idea. Unless you had a really short service?

Sunseed · 17/09/2017 22:18

Have a look at the Personal Finance Society's website to search for members who are qualified advisers in your local area. For final salary/defined benefit pension scheme transfers they specifically need to hold an Occupational Pension Transfer licence in addition to the minimum qualifications. Www.thepfs.org

Stakeholder pensions tend to be a bit more expensive and less flexible than newer plans. Is this one you already have in addition to the final salary scheme? An endowment is not a pension scheme so is not able to be used to receive the pension scheme proceeds.

titchy · 17/09/2017 22:20

Advice - don't do it!!!!!

Sunseed · 17/09/2017 22:20

Please don't use Unbiased. IFA's pay to be listed on there so are not particularly unbiased.

Original poster
callitaspade · 17/09/2017 22:22

So, I'm doing this because I'm 62, and have 500k in my pension pot. My pension would be 19k a year - any lump sum I take tax free. The men in my family have lived to 70 yrs ( average) so if I live to 75 and my wife lives to 80 then the 500k looks seriously good.

OP posts:
Sunseed · 17/09/2017 22:23

Final salary transfers may sometimes be the most suitable course of action to take in certain circumstances, but should not be undertaken lightly, hence the legal requirement for proper advice.

LivLemler · 17/09/2017 22:25

Make sure whoever you have advising you is legit. It's usually a terrible move, so if you find someone who does recommend it to you, ask them what they see in your circumstances that are so different to the norm.

If you plan to then remove the funds from the SIPP, be aware you may face huge tax charges. Look into this before you move your final salary pension as there is no going back.

If you are worried about the security of your pension due to the solvency of the company, they may well reduce the transfer value to stop a run on the scheme.

Sunseed · 17/09/2017 22:29

You need to look beyond just the death benefits. Think about what level of income you and your wife realistically need in retirement. What other resources you have to generate that. Entitlements to State Pension. Income tax position for each of you. What happens if you live longer than expected, or if she dies first?

These are the sort of questions that an adviser will be asking so be prepared in advance of your meeting with one.

titchy · 17/09/2017 22:34

But what if you both live to 90? The age at which your family members have died isn't a particularly good indicator of your own likely age at death.

Original poster
callitaspade · 17/09/2017 22:55

So if we live to 90, and run out of money, the state will look after us like my taxes have looked after all the other spongers for the last 40 years ?

OP posts:
IfYouGoDownToTheWoodsToday · 17/09/2017 22:59
Hmm
JoJoSM2 · 17/09/2017 23:51

19k if the value is 500k? Would you be allowed to just get the pot and do a draw down as and when needed? That would be my preferred option - keep the pot invested into a range of funds and draw down annually. ( I suppose that would be a SIPP type thing). An remaining money could be inherited tax free. You'll be eligible for state pension soon too so that will be a significant contribution to the ongoing costs of living.

titchy · 18/09/2017 07:11

You sound lovely. I've changed my advice. Ditch the DB, piss everything up up the wall. and live in one room cos that's all you can afford on a state pension

scrivette · 18/09/2017 07:57

Don't do it. There is a reason why final salary pensions are rare now and that's because they are so good.

You sound nice by the way Angry

JoJoSM2 · 18/09/2017 12:00

Isn't the state pension up to over £8k now? With the mortgage paid off, no children to support etc. And a few discounts, eg free bus travel, a top up of a few k a year is enough for a pretty nice retirement with some holidays and meals out etc especially if you're a couple so bills etc come out of 2 pensions.

dontcallmethatyoucunt · 19/09/2017 20:01

Isn't the state pension up to over £8k now

Nope, it's not. The universal state pension is set at just over 8k, but since only 20% of people actually receive that, don't assume you will

With a DB scheme that is likely to have been contracted out, you most probably won't get that

OP, you'd find someone to do that on the Internet, but when you say 'trust', what do you mean? Any good, good advice, investment genius, run away with your cash? A chartered IFA that does the work themselves (G60 qualified or AF3 as it is now) is a good place to start.

HandbagFan · 20/09/2017 14:23

Actually for many people coming out of a DB scheme is the right thing to do.

OP - you need an IFA who has certain qualifications to allow him to advise you on this - many do not have the qualifications and it's an area of high risk for them. Ideally I'd suggest asking friends or family for a recommendation. Otherwise it's a case of a google search. You're more likely to find someone with chartered status is able to help than a bog standard IFA so I'd search for 'chartered financial planner' and your town.

Good luck.

dontcallmethatyoucunt · 20/09/2017 14:31

OP - you need an IFA who has certain qualifications to allow him to advise you on this

HIM?! Him to advise you? Ahem. 'Her' in this case. I'm sure it was just a slip Wink

Sunseed · 20/09/2017 16:01

Another fully qualified "her" here who noticed the slip. I know we're still a bit of a rare breed but we do exist, and, truth be told, we're really very good at our job.

Gah81 · 20/09/2017 16:04

Don't use Unbiased for reasons stated above. The Money Advice Service is better with its Retirement Adviser Directory.

And seriously, DB to DC transfers are often not in the best interests of the client so please do consider carefully. Look for advicertain firms which contain a Pension Transfer Specialist.

Out2pasture · 20/09/2017 16:19

Zombie thread over two years old. I'm sure the OP sorted it by now...

Gah81 · 20/09/2017 16:48

Um, it's showing as OP posting September 2017 to me...

Out2pasture · 20/09/2017 16:51

How embarrassing :(

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