Defined Benefit Pension Transfer

Specialist DB Pension Transfer Advice - Glasgow based, UK wide advice

Would a Defined Benefit Pension Transfer be right for you?

You may benefit from the increased flexibility around taking tax free cash and income, as well as improved death benefits.

Where we can help

Initial consultation at our expense*
Customer education guide
Wide range of investment options
Capped initial charges

Abridged, low-cost advice service

We outline the risks, advantages and disadvantages, relating to your particular circumstances
Competitive ongoing fees

* Any work you ask us to carry out as a result of this meeting will be fee based.

Ask a question or request a call back

If your cash equivalent transfer value is £30,000 or over, you are required to seek financial advice.
Transferring a pension means giving up guaranteed benefits which won’t suit most people.

UK expats – we can only give advice if you are currently within the UK.

Client circumstances generally necessary for advice

Due to the new non-contingent charging changes (see below) we will generally only offer advice on defined benefit pension transfers if you are currently within the UK and fulfil one of the criteria listed here:

  • You are within 12 months of retiring, have relevant investment experience, and need to draw income for retirement support.
  • You have serious ill health or are in extreme financial difficulty with no other practical solution.
  • You wish to purchase a commercial property within a SIPP, to support your own existing profitable business.
  • Your defined benefit pension scheme is superfluous to your income needs and a transfer is for the purpose of succession planning.

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New non-contingent charging for defined benefit pension transfers

Please be aware, rules around defined benefit pension transfer fees have changed!

The Financial Conduct Authority (FCA) have ruled that from the 01.10.2020 all defined benefit (final salary) pension transfer advice must be provided on a non-contingent basis, except in some very limited circumstances. This means;

  • Irrespective of the outcome of the advice, the client will be paying the same fee.
  • If the outcome is not to transfer, this fee will be liable for VAT, costing the client more than a recommendation to transfer.

Contingent charging will be banned in most circumstances, with only those consumers who do not have the money available to pay for advice AND are either in serious ill health OR serious financial difficulties.

Abridged Advice

From October 1st, 2020 we will be able to offer a short form of advice, known as ‘abridged advice’. This is a simpler ‘low cost’ advice process which will only determine if a transfer is either unsuitable, or that it’s not possible to make a conclusive recommendation on the information provided. 

This service still requires an extensive discovery meeting. We charge a fixed fee of £500 plus VAT payable on receipt of our written report. If you proceed to full advice the cost of the abridged advice (excluding VAT) will be discounted from the full advice fee.

Cash Equivalent Transfer Value (CETV) explained

Before we can provide you with advice it’s important to understand that the transfer value you receive from your defined benefit scheme could be different to the figure currently quoted.

Where all the requirements have not been met (for any reason) within the three-month period, the transfer value will need recalculating and could be higher or lower than originally stated. Without an in-date guaranteed CETV, the transfer from the defined benefit pension scheme is unlikely to proceed. Additionally, before an appropriate transfer recommendation can be made, the scheme also needs to provide all supporting documentation within the three-month window. Without the full scheme information alongside the CETV, we are unable to provide any advice before the CETV expires.

Our document below explains what the CETV is and why your transfer value might be different than the one originally quoted.

CASH EQUIVALENT TRANSFER VALUE (cETV) EXPLAINED

Defined Benefit Transfer Client Education Guide

Your decision on whether to receive pension transfer advice or not is an important first step

If you are looking to transfer your defined benefit (DB) pension, it is important you have a general understanding of your scheme, including the benefits and drawbacks it may have, before you decide whether you want to take advice or not.

Since the change in law around contingent charging for pension transfers, there are now advice fees applicable, regardless of the outcome. 

We offer a four page defined benefit client education guide, available on request, and designed to help you better understand the risks involved. This should help you to decide whether you wish to proceed with advice or not. You should read the guide carefully before making a decision.

The guide is for information only and is not intended to be, and should not be interpreted to be, personalised advice. 

DB Client Guide Contents

Main differences between a defined benefit and a defined contribution pension
What you should consider before taking advice
Difference between ‘abridged’ and ‘full’ advice
Next steps
Comparison table comparing some of the features of a defined benefit pension scheme with a defined contribution pension scheme
What advice we can offer you
Pension transfer advice service options

Transferring out of a defined benefit pension scheme is unlikely to be in the best interests of most people. 

Request our DB Pension Transfer Client Education Guide

Better understand your scheme, including the benefits and drawbacks it may have – this will help you decide whether you want to take advice on your pension.

    …invaluable in helping me choose the correct options for my circumstances…

    “…Their product and market knowledge has been invaluable in helping me choose the correct options for my circumstances and aspirations, resulting in a reliable and stable portfolio to see my family through to my retirement and beyond. I have no hesitation in recommending them to any individual who, like me, needs to be shown the way in this often bewildering world of personal finance.”

    Mr P. M. Perthshire

    Transferring out of a Defined Benefit/Final Salary scheme is unlikely to be in the best interests of most people.
    The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.

    Get in touch

    Book a free initial consultation*, ask a question or request a call back. Call us on 0141 352 7800 or fill in the form below.

    * Any work you ask us to carry out as a result of this meeting will be fee based.

      Useful Link

      We would encourage you to watch the FCA information and videos aiming to help people understand defined benefit pension transfers, as well as what to expect from an adviser.

       

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