dj mick Posted October 5, 2021 Share Posted October 5, 2021 Not looking to get advice for free (But probably am tbh), but I'm about to transfer a pension I had for a number of years, don't want to give much details away but the transfer value is 350k, but who do i transfer it to? As i understand it I can take 25% lump sum and the do a "Drawdown thing" I have tried researching this and have an appointment with a financial fella next week, was just looking for a few tips of what to look out for and what traps I might fall into? Ta in Advance guys., Quote Link to comment Share on other sites More sharing options...
dandydunn Posted October 5, 2021 Share Posted October 5, 2021 25 minutes ago, dj mick said: Not looking to get advice for free (But probably am tbh), but I'm about to transfer a pension I had for a number of years, don't want to give much details away but the transfer value is 350k, but who do i transfer it to? As i understand it I can take 25% lump sum and the do a "Drawdown thing" I have tried researching this and have an appointment with a financial fella next week, was just looking for a few tips of what to look out for and what traps I might fall into? Ta in Advance guys., I’ll take it 👍🏽 Quote Link to comment Share on other sites More sharing options...
Broath Boy Posted October 6, 2021 Share Posted October 6, 2021 There is a thread on TAMB called Pension Advice from a couple of years ago, think it is 3 pages long, search back for the thread, some good advice in it. Quote Link to comment Share on other sites More sharing options...
dj mick Posted October 6, 2021 Author Share Posted October 6, 2021 11 hours ago, Broath Boy said: There is a thread on TAMB called Pension Advice from a couple of years ago, think it is 3 pages long, search back for the thread, some good advice in it. Good man,, found it Quote Link to comment Share on other sites More sharing options...
Archiesdad Posted October 6, 2021 Share Posted October 6, 2021 1 hour ago, dj mick said: Good man,, found it Gonna post something in it ,so it comes back up. I could do with a read anaw..👍👍 Quote Link to comment Share on other sites More sharing options...
Squirrelhumper Posted October 6, 2021 Share Posted October 6, 2021 (edited) On 10/5/2021 at 9:22 PM, dj mick said: Not looking to get advice for free (But probably am tbh), but I'm about to transfer a pension I had for a number of years, don't want to give much details away but the transfer value is 350k, but who do i transfer it to? As i understand it I can take 25% lump sum and the do a "Drawdown thing" I have tried researching this and have an appointment with a financial fella next week, was just looking for a few tips of what to look out for and what traps I might fall into? Ta in Advance guys., I recommend taking.your 25% tax free and then drawing down on the rest yearly. I certainly wouldnt be taking an annuity. Depending on your age, draw down more just now then draw down less when you reach state pension age. You'll pay tax on it either way unfortunately. At least you'll have 90k tax free lump sum in the bank! Edited October 6, 2021 by Squirrelhumper Quote Link to comment Share on other sites More sharing options...
euan2020 Posted October 7, 2021 Share Posted October 7, 2021 (edited) consider www.iii.co.uk (interactive investor ) move your pension there, and lump sum, & draw down - from what i looked into their yearly fees are low, and not punitive don't consider annuity - I consider my pension a life pension, and think will always be in equity (100% growth last 5 years on UK Pension with no new contributions) + wife is 18 years younger so can add her retirement years onto mien 350K is good sum compared to average in UK - Normally folk discuss taking 4% per annum In 10 years time 350K will grow to GBP 1.087M, if you draw down nothing based on 12% growth (what i have paced last 5 years ) I'm living/working in USA just now and can't get head round guys at work thinking they need $2M of savings, not withstanding medicals costs until 67 are expensive I fancy retiring @ 53/54 & then travelling more again, with being swallow, and summer in Scotland and Cape Town following hemisphere summer factor into your will, for beneficiary to inherit the pension as a pension rather than cash - so no taxes although if you die before 75 there is no taxes anyway Making myself non UK tax resident in retirement, i should have no taxes to pay so 20% (ish) benefit to remaining non UK tax resident I still pay 19% of wage into Pension with Employer paying 9% on top Edited October 7, 2021 by euan2020 Quote Link to comment Share on other sites More sharing options...
euan2020 Posted October 7, 2021 Share Posted October 7, 2021 On 10/5/2021 at 3:22 PM, dj mick said: Not looking to get advice for free (But probably am tbh), but I'm about to transfer a pension I had for a number of years, don't want to give much details away but the transfer value is 350k, but who do i transfer it to? As i understand it I can take 25% lump sum and the do a "Drawdown thing" I have tried researching this and have an appointment with a financial fella next week, was just looking for a few tips of what to look out for and what traps I might fall into? Ta in Advance guys., re-reading this - don't be transferring it with your financial consultant " Salesman" paying fees - head to www.iiii.co.uk - Quote Link to comment Share on other sites More sharing options...
killiefaetheferry Posted October 7, 2021 Share Posted October 7, 2021 On 10/5/2021 at 9:22 PM, dj mick said: Not looking to get advice for free (But probably am tbh), but I'm about to transfer a pension I had for a number of years, don't want to give much details away but the transfer value is 350k, but who do i transfer it to? As i understand it I can take 25% lump sum and the do a "Drawdown thing" I have tried researching this and have an appointment with a financial fella next week, was just looking for a few tips of what to look out for and what traps I might fall into? Ta in Advance guys., Shop around for the cost of your advice. You'll know that you have to legally get advice to be allowed to transfer if your transfer value is over £30,000. I went through a Financial Adviser who said most companies are outsourcing to specialists - I was directed towards Groves Financial. This is apparently because the fear of claims against them for giving the wrong advice means they would need expensive insurance. The fee for the advice is normally taken out of your pension 'pot'. My transfer value is about the same as yours and I was looking at paying about 12k just for the advice which is required to allow the transfer to take place. I then found out that my previous employer who I have the pension with, Tesco, have now set up a deal with a specialist firm who will only charge me £900 to make it happen. They are called Oxigen, I think, but now can't find them on the internet 😂. I'll look at my paperwork and get back to you. You can transfer your pension to whoever you like. I've been using Pension Bee for just over a year for a smaller pension that I was allowed to transfer without advice as it was under 30k. I've had over 30% growth but has dipped back to 26% the last week or two. I like that it's an app and that they appear to take the management fee daily, so small amounts. Means your running total is what you've actually got and you don't have to factor in dropping a large amount on fees yearly. Quote Link to comment Share on other sites More sharing options...
killiefaetheferry Posted October 7, 2021 Share Posted October 7, 2021 19 minutes ago, euan2020 said: re-reading this - don't be transferring it with your financial consultant " Salesman" paying fees - head to www.iiii.co.uk - This. Take all the free advice - I'm assuming your upcoming meeting is free? Then use the advice from the other thread that helped me. You'll soon know your way around this area but it's a bit daunting at first. All Financial Advisors make money by managing your cash. Find out his fee structure and his investment advice etc before deciding, but there are now platforms that make it easy for us to do this ourselves. Quote Link to comment Share on other sites More sharing options...
dj mick Posted October 7, 2021 Author Share Posted October 7, 2021 All brilliant advice, thanks guys Quote Link to comment Share on other sites More sharing options...
TDYER63 Posted October 7, 2021 Share Posted October 7, 2021 16 minutes ago, dj mick said: All brilliant advice, thanks guys I had a pension much the same value as yours. I was happy to pay the fee as it took all the hassle out of it for me, despite working in the finance industry I just cannot be arsed wading through websites. I got all the initial advice free then I paid £5000 to move out of a final salary pension, this was between the financial advisor and the company that took it on , and i pay 0.5% a year thereafter. It has gone up 14% in a year so I am more than happy with that return. Just depends how much involvement you want and how much you are prepared to pay. Quote Link to comment Share on other sites More sharing options...
euan2020 Posted October 7, 2021 Share Posted October 7, 2021 9 hours ago, killiefaetheferry said: Shop around for the cost of your advice. You'll know that you have to legally get advice to be allowed to transfer if your transfer value is over £30,000. I went through a Financial Adviser who said most companies are outsourcing to specialists - I was directed towards Groves Financial. This is apparently because the fear of claims against them for giving the wrong advice means they would need expensive insurance. The fee for the advice is normally taken out of your pension 'pot'. My transfer value is about the same as yours and I was looking at paying about 12k just for the advice which is required to allow the transfer to take place. I then found out that my previous employer who I have the pension with, Tesco, have now set up a deal with a specialist firm who will only charge me £900 to make it happen. They are called Oxigen, I think, but now can't find them on the internet 😂. I'll look at my paperwork and get back to you. You can transfer your pension to whoever you like. I've been using Pension Bee for just over a year for a smaller pension that I was allowed to transfer without advice as it was under 30k. I've had over 30% growth but has dipped back to 26% the last week or two. I like that it's an app and that they appear to take the management fee daily, so small amounts. Means your running total is what you've actually got and you don't have to factor in dropping a large amount on fees yearly. was that for Final Salary pension or contributions based ? thinking final salary ? Quote Link to comment Share on other sites More sharing options...
TDYER63 Posted October 7, 2021 Share Posted October 7, 2021 17 hours ago, Archiesdad said: Gonna post something in it ,so it comes back up. I could do with a read anaw..👍👍 https://www.tamb.net/forum/index.php?/topic/7344-pension-advice-required/&tab=comments#comment-248293 Quote Link to comment Share on other sites More sharing options...
killiefaetheferry Posted October 7, 2021 Share Posted October 7, 2021 1 hour ago, euan2020 said: was that for Final Salary pension or contributions based ? thinking final salary ? Aye, mine is Final Salary. I think the rule applies to Defined Contribution too. Quote Link to comment Share on other sites More sharing options...
euan2020 Posted October 7, 2021 Share Posted October 7, 2021 7 hours ago, killiefaetheferry said: Aye, mine is Final Salary. I think the rule applies to Defined Contribution too. no - it doesn't as far as i understand - why i asked - i had to get same on a 50K Defined Benefits, but not on the bigger pot from my more recent employment - Financial Consultants paid the fee, due to them hooking me on % of the bigger pot. I'm up 8% this year, although was 15% a week ago - so 100% over the 5 years now - averaging 12% cumulative growth a year - which i guess means nothing without putting numbers to it - Covid took it down 25% for that 3 months in May 20 Quote Link to comment Share on other sites More sharing options...
dj mick Posted October 16, 2021 Author Share Posted October 16, 2021 so to put this in some sort of language i can understand, the IFA guy I have is saying the fees due to him and suchlike will be well within what the "Pot" will earn,, as it stands I will be transferring around 350k into various safe ventures and I will (Should ) earn a monthly packet roughly equal to what i take home now. My head hurts. Quote Link to comment Share on other sites More sharing options...
killiefaetheferry Posted October 16, 2021 Share Posted October 16, 2021 37 minutes ago, dj mick said: so to put this in some sort of language i can understand, the IFA guy I have is saying the fees due to him and suchlike will be well within what the "Pot" will earn,, as it stands I will be transferring around 350k into various safe ventures and I will (Should ) earn a monthly packet roughly equal to what i take home now. My head hurts. Yeah, so if your investments return 10% then obviously you're adding 35k in the first year. Do I understand correctly that you're 'retiring' from work and the pension pot will be your only income until you qualify for the State Pension as well? And that this is why you're talking about taking a monthly sum out? Fair enough. I'd just advise to be clear on what fees are being charged. Euan is suggesting iii and I'm currently in Pension Bee. They charge me approx 0.7ish percent to manage your sort of amount. What percentage is your IFA asking for? He might be entirely reasonable in what he charges you. Good luck. Quote Link to comment Share on other sites More sharing options...
dj mick Posted October 17, 2021 Author Share Posted October 17, 2021 i 16 hours ago, killiefaetheferry said: Yeah, so if your investments return 10% then obviously you're adding 35k in the first year. Do I understand correctly that you're 'retiring' from work and the pension pot will be your only income until you qualify for the State Pension as well? And that this is why you're talking about taking a monthly sum out? Fair enough. I'd just advise to be clear on what fees are being charged. Euan is suggesting iii and I'm currently in Pension Bee. They charge me approx 0.7ish percent to manage your sort of amount. What percentage is your IFA asking for? He might be entirely reasonable in what he charges you. Good luck. I'm going into semi-retirement with a view to working around 20hrs a week, state pension is 7 yrs away so I'm kind of just looking at my options. Quote Link to comment Share on other sites More sharing options...
dj mick Posted October 17, 2021 Author Share Posted October 17, 2021 16 hours ago, killiefaetheferry said: Yeah, so if your investments return 10% then obviously you're adding 35k in the first year. Do I understand correctly that you're 'retiring' from work and the pension pot will be your only income until you qualify for the State Pension as well? And that this is why you're talking about taking a monthly sum out? Fair enough. I'd just advise to be clear on what fees are being charged. Euan is suggesting iii and I'm currently in Pension Bee. They charge me approx 0.7ish percent to manage your sort of amount. What percentage is your IFA asking for? He might be entirely reasonable in what he charges you. Good luck. Also, I missed the bit about what fees he would charge but the meeting with him tomorrow should give me a clearer picture, Cheers Quote Link to comment Share on other sites More sharing options...
thplinth Posted October 17, 2021 Share Posted October 17, 2021 Ask him what he will be investing your money into. Safe ventures dont typically have high yields. What % in equities, bonds whatever.... Stock markets have done well in recent years (covid blip aside) but that can change quickly and you can be unlucky on your timing when you invest. So maybe do it in stages over time. Always good to keep a lump of cash as well. Then if the markets do crash you can take advantage of it. Golden rule is be diversified. Quote Link to comment Share on other sites More sharing options...
TDYER63 Posted October 17, 2021 Share Posted October 17, 2021 1 hour ago, dj mick said: i I'm going into semi-retirement with a view to working around 20hrs a week, state pension is 7 yrs away so I'm kind of just looking at my options. 1 hour ago, dj mick said: Also, I missed the bit about what fees he would charge but the meeting with him tomorrow should give me a clearer picture, Cheers If you are not too comfortable going it alone fees of around 0.5-0.7 % are not excessive. You need to consider the tax implications of drawing a pension whilst still working , an advisor will be able to advise you on all of this and of any future changes to tax rules which could be a distinct possibility as one of the ways to pay back the government debt. Advisors are tightly regulated these days so need to be careful on the advice they give you making your investment less risky. But you may have an interest in managing your pension yourself as others have done. The last thing I want to do when I retire is be connected to the finance industry I have been in for 40 years, but others may enjoy it . Whatever you choose, dont micro manage your pension or you will become obsessed. Even in a safe environment the value of your pension could be volatile during periods of instability, you need to ride the storm till it is over. Good luck. Quote Link to comment Share on other sites More sharing options...
dj mick Posted October 20, 2021 Author Share Posted October 20, 2021 So looks like my best option is to transfer into royal london, take a cash free lump sum and then put that into Isa's. The pot should (Hopefully) grow at around 7% per annum, i will be taking 4% PA and the servicing fees will be around 1.1% including the financial advisor working for me, the rest of the pot will be diversified into various schemes, some low risk, some medium and a small greater risk investment. This should give me a monthly income roughly equivilant to what I earn now, As I am almost 60 this seems like the best way to go for me. Quote Link to comment Share on other sites More sharing options...
dj mick Posted November 1, 2021 Author Share Posted November 1, 2021 It seems I am now with "Pension works" who will now do a few studies and recommendations with either transferring,, or staying in the pension,, now here's the thing, If i get to transfer they will charge me 10k, if the rec is that i don't transfer and leave as is they will still charge me 10k. They did say there would have to be a very good reason why I wouldn't be allowed to transfer tho and most people don't have any probs, thought? Quote Link to comment Share on other sites More sharing options...
TDYER63 Posted November 1, 2021 Share Posted November 1, 2021 36 minutes ago, dj mick said: It seems I am now with "Pension works" who will now do a few studies and recommendations with either transferring,, or staying in the pension,, now here's the thing, If i get to transfer they will charge me 10k, if the rec is that i don't transfer and leave as is they will still charge me 10k. They did say there would have to be a very good reason why I wouldn't be allowed to transfer tho and most people don't have any probs, thought? Is it a defined benefit pension you are transferring from ? When I transferred from mine the rules were just about to change so that the company who reviews your pension situation gets paid whether the transfer happens or not , that was just over a year ago, previously they only got paid if the transfer went through . However I think there must have been concerns that transfers were taking place under poor advice. I got in just before the change, I was accepted so there was no issue anyway but I had been rejected the previous year. The company my IFA used was quite rigorous. I had to take another look at my expected retirement spending before it was approved. So I would say that is correct ( bit highlighted in bold) but I think £10k is pretty hefty , my charges were half of that for a very similar amount . Quote Link to comment Share on other sites More sharing options...
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