Pension fee advice

Does anyone know what is the going rate for IFA's to advise/action the transfer of £100k + DB pension, into a SIPP?
 
Fat Larrys Band said:
Does anyone know what is the going rate for IFA's to advise/action the transfer of £100k + DB pension, into a SIPP?
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Likely in the region of £3-5,500 I would think.

But bear in mind if the IFA - taking in to account FCA guidance on DB advice - decides a transfer from the DB scheme is not the best outcome for you, it's likely any SIPP would decline to accept the transfer whether you still want to proceed or not.
 
blueian99 said:
Likely in the region of £3-5,500 I would think.

But bear in mind if the IFA - taking in to account FCA guidance on DB advice - decides a transfer from the DB scheme is not the best outcome for you, it's likely any SIPP would decline to accept the transfer whether you still want to proceed or not.
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The IFA I used had to get permission from his Indemnity Insurer to go ahead and transfer.

I’m stalling on mine at the moment, the pot recovered from 73k post Covid to around 80k in September (was 85k pre Covid). I got an updated figure last week after the FTSE had moved up and they quoted 76k guaranteed until January which is unusual because they have previously stated only guaranteed for about 2 weeks, are they deliberately trying to fob me off?
 
Mine is an old works pension, which was transferred out (when the company, closed down) and ended being transferred to various Insurance companies.

It is now with Aviva - they charge £1,525 for a report and a percentage for advice fee. They quote a combined cost of £4,400 for a £150k pension.

They can only recommend their products.

As the actual pension is only worth £4k a year - it seems like a no-brainer to me to take the cash.

Any thoughts? Cheers
 
Fat Larrys Band said:
Mine is an old works pension, which was transferred out (when the company, closed down) and ended being transferred to various Insurance companies.

It is now with Aviva - they charge £1,525 for a report and a percentage for advice fee. They quote a combined cost of £4,400 for a £150k pension.

They can only recommend their products.

As the actual pension is only worth £4k a year - it seems like a no-brainer to me to take the cash.

Any thoughts? Cheers
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Yeah, divide the transfer value (150k) by the annual income (4.4K) and it will last you for 34 years if you make (only) CPI on your investments and draw down the same amount - plus of something happens to you then your beneficiaries receive 100% of the pot free of tax*

*though if you pass after 75 years of age then it’s taxed at your beneficiary’s nominal rate of income tax.

It’s a good transfer value but a pension transfer isn’t just about the objective value, there’s the subjective also that must be right (do you need a guaranteed income? Will you lie awake at night if the market is volatile post-transfer etc etc)
 
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Fat Larrys Band said:
Does anyone know what is the going rate for IFA's to advise/action the transfer of £100k + DB pension, into a SIPP?
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I’ve pretty much stopped giving pension transfer advice now unless the multiple (transfer value divided by annual guaranteed pension income) is very high (25-30+ times).

The PI insurance on pension transfers is absolutely through the roof and whilst transferring is a very good idea for lots of people, it’s not for everyone.

As for the going rate, it’s anything from 1-4% and an annual fee of between 0-1% pa after that time. Willis Towers Watson quoted one of my clients 1.5% of their CETV (£22k) to write the pension transfer report. The £22k was the quotation, not the transfer value - nice work if you can get it I suppose. (although they didn’t which is why he became my client instead..)
 
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blueian99 said:
Likely in the region of £3-5,500 I would think.

But bear in mind if the IFA - taking in to account FCA guidance on DB advice - decides a transfer from the DB scheme is not the best outcome for you, it's likely any SIPP would decline to accept the transfer whether you still want to proceed or not.
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I went through this earlier this year trying to assess costs for transfer of a DB scheme to Fidelity DC scheme. They wanted me to pay £1500 upfront fee for ‘advice’ but stated they might recommend the pension to stay where it is....
 
hammocity said:
Over 30k requires a IFA, if it’s a defined contribution the IFA needs permission from their Indemnity Insurer to give the advice. From recent experience it can be frustrating transferring pensions and beware of the charlatans out there.
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Over 30k requires an IFA is this definite hammo?
 
On a side note.....is there any merit in putting a lumpsum into a pension post?
I have a couple of endowments due to mature...and i no longer "need" them for my mortgage, as its now repayment.

Trying to decide if i use them to either:
* Reduce the length of term of my mortgage
* Reduce my monthly mortgage payments, but keep the length of term
* Put them into pension pot
 
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