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Yeah it seems high to me, the way it works is that they give you advice on wether it can be transferred or not before it goes to "Stage 2", if the advice is not to transfer before stage 2 then they don't charge anything if that makes sense?

I think it's a final salary pension

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7 hours ago, dj mick said:

Yeah it seems high to me, the way it works is that they give you advice on wether it can be transferred or not before it goes to "Stage 2", if the advice is not to transfer before stage 2 then they don't charge anything if that makes sense?

I think it's a final salary pension

Db and final salary are the same thing so you are correct 😊

I would think they will charge  an admin fee of some sort if it is rejected but it should only be to cover their costs. 

I am not sure why they are saying there would need to be a good reason not for them to advise that you transfer out, the FCA are really careful these days as final salary pensions are seen to be fairly gold plated . Infact I read that :

‘The FCA advise that all DB scheme members should be treated as if they are going to stay put, and a very strong case must be made to consider a transfer out.


The will look at your overall financial situation and your intended outlays for retirement. The multiplier that has been offered will also be very important. If your employer is offering a multiplier of 30 or over there is more chance of your transfer being approved. They will look at the market cost of buying an annuity the same as the final salary you have and if the transfer value is too far below that the chances are it would be rejected. But perhaps you have a really good multiplier and / or financial situation and that is why they feel there would need to be a good reason to reject it. 

I do think £10k is a very high fee to charge though.  

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On 11/2/2021 at 4:48 AM, dj mick said:

Yeah it seems high to me, the way it works is that they give you advice on wether it can be transferred or not before it goes to "Stage 2", if the advice is not to transfer before stage 2 then they don't charge anything if that makes sense?

I think it's a final salary pension

seems high  - i thought was lump sum fees not % based 

I had a DB/Final Salary review on a GBP50K Pension, and the fee was GBP  1,000 (paid by the advisors not me cos they were getting commission ) 

I would imagine its a hard fight to get a 350K Final Salary Pension Xfer signed off on - mine was straight forward since being my smaller pot

 

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On 10/20/2021 at 3:52 AM, dj mick said:

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 equivilent to what I earn now, As I am almost 60 this seems like the best way to go for me.

just to clarify - i am sure that will be the Platform + Advisors Fee's 

There will also be the Find Mangers Fees inside the individual funds you are invested in which could be 0.3-1.3% type thing - so to get to your 7% you will really need say 9.4% growth in the market to cover potential  2.4% of fees 

given this is Royal London,   they are not discussing giving you a bond or something are they  ? 

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23 hours ago, euan2020 said:

just to clarify - i am sure that will be the Platform + Advisors Fee's 

There will also be the Find Mangers Fees inside the individual funds you are invested in which could be 0.3-1.3% type thing - so to get to your 7% you will really need say 9.4% growth in the market to cover potential  2.4% of fees 

given this is Royal London,   they are not discussing giving you a bond or something are they  ? 

The whole thing is being dealt with by "Pension Works" at the moment who will advise me if I can transfer or not and then it goes to Royal London I believe, we're still very much in the "Advise" stage at the moment.

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On 10/17/2021 at 6:19 AM, TDYER63 said:

 

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. 

I just got new advisor to agree to 0.4% for AUM - they were looking for 0.6% at Xmas - I don't actually  need them, but Platform i am using with product, refuses to allow me to be Professional Investor, and manage own fund  - better than being forced to pay 1.1%, which would have been combination of AUM & Statutory reporting costs %   

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