Transferring Pension

[gjohn6]

Hi, my previous employer recently closed our automotive plant and specified that only employees who were 45 or over could access their final salary pensions at 55, and any employee younger than this (regardless of service) will have to wait until they’re 65.
For this reason a number of us have looked at transferring out to a private pension however; I’ve been advised by a number of financial advisors that because of the my age (43), and regardless of the fact they agree with me, the government have almost made it almost impossible for me to do this.
The reason I’m so eager to transfer out is because the transfer value is very high at the moment, although it has dropped by nearly £130k in the past fortnight, which again is why I’m eager to transfer out and avoid any further drops, and also, in f something happens to me, my partner can only access 50% of the pot at 65.
Has anyone had the same experience, or can offer any advise of a way around this?
Regards,

Hi, my previous employer recently closed our automotive plant and specified that only employees who were 45 or over could access their final salary pensions at 55, and any employee younger than this (regardless of service) will have to wait until they’re 65.
For this reason a number of us have looked at transferring out to a private pension however; I’ve been advised by a number of financial advisors that because of the my age (43), and regardless of the fact they agree with me, the government have almost made it almost impossible for me to do this.
The reason I’m so eager to transfer out is because the transfer value is very high at the moment, although it has dropped by nearly £130k in the past fortnight, which again is why I’m eager to transfer out and avoid any further drops.
Has anyone had the same experience, or can offer any advise of a way around this?
Regards,

I assume that you have a Defined Benefits pension, the risk to an adviser for transferring these, is generally to high to warrant the business.

It is a very hot potatoe in the advising world, with lots of the Port Talbot Steel workers with live claims with the FCA, FOS and FSCS.

I would be surprised if you found someone willing to do it, the advice process to transfer it is very robust, and without significant assetts and cash in the back ground, I would say it is not looking good.

Thanks for your comment.
That what one advisor told me, that basically a minority of the workers received very bad advise, and it’s spoilt it for everyone under 55.

Not a problem, I think the issue was bulk transferring if pensions without a suitable level of due diligence.

People giving up guaranteed income for life, with little or no other provision.

It certainly can be the right advice in the right circumstances, however, as you mention, it is now ruined for all.

OP the main problem you are going to have is finding an adviser who will be willing to go through the full advice process with you. Many will refuse to deliver this type of advice to anyone below 55 unless they either have scheme with a lower normal retirement date, are very seriously unwell with less than 12 months to live or are in severe financial difficulties with bailiffs at the door.

If you do manage to find someone, you need them to go through Full Advice (not just Abridged Advice). This is because unless they have done so they cannot provide you with the requisite certificate for the ceding scheme confirming that you have received advice regardless of the outcome (whether they say Do Not Transfer or that a transfer is suitable).

The size of a transfer value is not a valid reason on its own to support a transfer.

Thanks for the advice, appreciated.