Based in Boston Spa, Yorkshire, we offer final salary (defined benefit) pension transfer advice to clients across the UK, with no face-to-face meeting required. We do not charge a fee if we do not recommend a transfer.
Please note that we are currently only advising on defined benefit pension transfer values worth more than £150,000.
We pride ourselves in giving an objective, unbiased assesment of whether a transfer in your interests, and frequently recommend that clients do not transfer out of their pensions. Where we do recommend a transfer we first ensure that clients are fully aware of all the potential risks and disadvantages involved.
Our DB transfer advice charge
If we do not recommend a transfer in your case then no fee is payable, and you would be free to seek a second opinion from another IFA.
If we do recommend that you transfer our of your defined benefit pension then our full transfer advice fee, deducted from the transfer value as it moves to the new personal pension, is as follows:
This covers the work involved in the transfer as well as the very significant compliance, regulatory and liability costs involved in advising on defined benefit transfers.
Please note that the above fees apply to a transfer into an "income drawdown" pension. Additional fees apply for the purchase of a lifetime annuity - please ask for details.
We will provide expert advice on how to invest your transfer value, in order to meet your financial goals while taking an appropriate level of risk. If you choose our ongoing advice service then the total annual cost of your new pension, including the provider charge, fund management charges, and our ongoing advice charge, will typically be between 0.5% and 1% of assets per year, which is highly competitive by industry standards (the total cost of a SIPP with Hargreaves Lansdown, including their provider charge and the cost of a typical "active" investment fund, can be as much as 2% per year, or even more).
We can only provide advice on a DB transfer if we are also going to be providing you with ongoing investment advice for at least the first year after the transfer. This is because we want to be sure that the investments you choose will be suitable for your circumstances and appetite for investment risk. We would therefore set up a new personal pension (SIPP), with a mainstream provider such as Aviva or AJ Bell, to receive the transfer proceeds.
Stage 1: Initial assessment (no fee)
This involves a short phone call (or email exchange) to help us understand your personal and financial circumstances, the pensions that you have, and the reasons that you want to transfer out of your defined benefit pension. This allows us to quickly reach a decision on whether we are going to be able to offer you advice on your transfer or not.
If we decide that we aren't able to offer advice on your particular situation then we will explain why, and, if you wish, provide details of other firms of advisers so you can get a second opinion.
Stage 2: Advice on your transfer (no fee if we do not recommend a transfer)
If we feel that we may be able to recommend a transfer then we will carry out a detailed initial analysis of the transfer value being offered, the attributes of your pension scheme, and your circumstances. We will carefully consider whether or not a transfer is in your interests, and if there are better ways of achieving your financial goals.
If, having done this, we advise you NOT to transfer then we will provide a short report giving the reasons for this, and will not charge a fee. We will not be able to sign any "advice confirmation" forms from your pension scheme in this situation.
If we advise that you DO transfer then we will offer you the option of proceeding with the transfer.
Stage 3: Full transfer analysis with recommendation report (fee as specified at the top of this page)
We will supply the following:
If having read all that you still want to proceed, and we are happy that you understand the risks involved, and that a transfer is still suitable for your situation, then we proceed to the transfer itself.
Stage 4: Ongoing advice on the investments within the new pension
Once the transfer is complete we provide ongoing advice on the investments held, including when to make changes to the funds you hold as market conditions and your circumstances and risk appetite change, as well as advice on how to withdraw money in the most tax efficient way when you reach retirement age. We will write to you regularly with performance reports, market updates, and investment advice, and will provide you with as much ad-hoc advice as you want. We will take care of all the administration of the new pension, although we will always get your permission before carrying out any dealing.
Why consider a transfer?
A final salary (or "defined benefit") pension is one of the most secure and attractive forms of pension. Your income is guaranteed for life, with inflation protection, and an income for your spouse. Few "money purchase" pensions, whether occupational or personal, can match these benefits, regardless of whether income is taken via a lifetime annuity or income drawdown. Also, money transferred into a personal pension will be liable to the ups and downs of the financial markets, which members of final salary pension schemes don't have to worry about.
However, there are circumstances where transferring out of a final salary pension can make sense. For example:
Whatever your reasons, if your transfer value is greater than £30,000 then you will have to get a qualified IFA to provide advice and certify to your pension scheme that they have done so.
To discuss our service please get in touch
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