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DB Pension Review - Fees

LongWayToGo
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Re: DB Pension Review - Fees

#129350

Postby LongWayToGo » April 1st, 2018, 7:31 pm

Snorvey wrote:As a matter of interest, was the recommendation to transfer or to leave it where it is?


Recommendation was to transfer. The scheme is from my very first employer who I worked for only 8 years and so the defined pension involved represents a small portion of my projected final retirement income (My starting salary with them was £5650 a year back in 1989!) The scheme doesn't pay out until I'm 65 and the spouse pension is quite poor (1/3 of original) which is a major factor for me as my wife is 10 years younger and likely to outlive me by some margin. In contrast I have another DB pension from my second employer worth considerably more (as I was earning a higher salary by this time and was with them longer) which I have chosen not to transfer as it can be taken from age 60 with no reduction and provides a 100% spouses pension.

Main reasons for the transfer were to provide some (hopefully) tax free cash for my wife and kids on my death (I have two small children, one aged 2 years and the other 8 months) who I would like to receive the money from this SIPP as my current pensions (apart from the second DB one) provide fairly poor spousal/dependents cover. Once I shuffle off the wife can decide to carry on taking the income from the investments if she feels she needs it, or take the cash, or give it to the kids to help buy houses/pay for university, or whatever she feels most appropriate at the time.

zico
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Re: DB Pension Review - Fees

#129352

Postby zico » April 1st, 2018, 7:45 pm

I got a summary answer 36 hours after sending them my details, and their recommendation was to take the offer. Their rationale is given below. I also had a named contact, and it was copied into another 3 people. So far, looks pretty good and professional.

"I am pleased to attach an extract from our preliminary figures and based upon this we would be minded to recommend a transfer on financial grounds

This is a very generous transfer in our opinion

There are 2 figures that we look at which are the amount of fund that is needed to match the estimated pension assuming that you took it at your retirement date and a cash flow analysis showing at certain investment rates of return showing when your funds would be exhausted.

This is for comparison purposes only as you are able to withdraw as much or as little as you wish. If you wish to proceed can you please complete the attached fact find and return it to me together with a scanned copy of the signed signature page of our client agreement which is attached. The fact find is designed to be completed online saved and emailed back to me

Please feel free to call me if there are any aspect that you wish to discuss "

LongWayToGo
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Re: DB Pension Review - Fees

#130688

Postby LongWayToGo » April 8th, 2018, 10:58 am

Quick update:-

Communication from BRG has been good, lots of emails from admin team keeping me informed of progress. All paperwork has been completed, signed off and sent to the various parties involved and I have received an email this morning from the receiving scheme (Interactive Investor) saying they have received the paperwork and the transfer is in progress.

So far, so good...

LWTG.

mc2fool
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Re: DB Pension Review - Fees

#130703

Postby mc2fool » April 8th, 2018, 12:04 pm

LongWayToGo wrote:Communication from BRG has been good...

BRG?

I have received an email this morning from the receiving scheme (Interactive Investor) saying they have received the paperwork and the transfer is in progress.

On a Sunday morning?!? Or did it look like an automated email where somebody ticked a box on Friday and II's system just got around to sending the email...

LongWayToGo
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Re: DB Pension Review - Fees

#130713

Postby LongWayToGo » April 8th, 2018, 12:52 pm

BRG = Better Retirement Group (IFA group handling the transfer)

Interactive Investor email looks generic, but still nice to at least have confirmation that the paperwork as arrived and things are in progress. They have included a unique reference number for the transfer so I can get in touch if needed.

LWTG

LongWayToGo
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Re: DB Pension Review - Fees

#135693

Postby LongWayToGo » April 30th, 2018, 10:27 am

Update:

Received a letter from the ceding scheme (BASF) on Friday saying the funds had been transferred to receiving SIPP scheme (Interactive Investor) and an email from II this morning saying funds have been received. Just logged into my account to see funds are indeed sitting in my SIPP waiting for investment so transfer process all complete.

Having heard several horror stories regarding pension transfers I must admit this seems to have gone very smoothly. From initial enquiry to funds sitting in my account has taken ~7 weeks, not rapid admittedly, but no issues of note.

Now, off to check out some global, passive equity trackers to spend all that money on....

Regards,

LWTG.

xxd09
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Re: DB Pension Review - Fees

#136200

Postby xxd09 » May 2nd, 2018, 9:56 am

Hi LongWayToGo
Remember plenty of Global Bond Index Trackers too!
xxd09

LongWayToGo
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Re: DB Pension Review - Fees

#136374

Postby LongWayToGo » May 2nd, 2018, 4:37 pm

Hi xxd09,

Thanks for the comment. I am aware there are plenty of global bond trackers but this money is 'happy retirement extras' money (i.e. not needed for pension income or to cover normal living expenses) so as it's long term and I'm looking for growth rather than safety I'm happy to go a bit higher risk and dump it all into equities.

We shall see how it goes.

Cheers,

LWTG

JamieT
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Re: DB Pension Review - Fees

#190250

Postby JamieT » December 31st, 2018, 3:07 pm

Having just received my CETV I am considering using SippClub for my transfer but just need some clarification, if possible, from zico and LongWayToGo as to who they actually used.

As I'm new to this site I cannot quote links, but the link provided by mc2fool, and which zico and LongWayToGo appear to have used, is for SippClub based at Warnham, West Sussex.

However, this appears to be the same SippClub that is not covered by the FCA in the link provided by ursaminortaur

Better Retirement Group are based in Northampton.

Thanks in advance for any advice as I'm sure that I'm missing something, but I just need clarification before proceeding.

Alaric
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Re: DB Pension Review - Fees

#190264

Postby Alaric » December 31st, 2018, 4:45 pm

JamieT wrote: but I just need clarification before proceeding.


This is what their website says

SIPPclub Limited (08290454) is registered in England and Wales with its registered office at 168 Church Road, Hove, East Sussex, BN3 2DL. SIPPclub is a trading name of Better Retirement Group Limited, which is authorised and regulated by the Financial Conduct Authority (Firms Reference Number 153420). Better Retirement Group Limited (02688895) is registered in England and Wales with its registered office at Leeds Innovation Centre, 103 Clarendon Road, Leeds, LS2 9DF.


So there's a SIPPclub Limited which isn't regulated, but also SIPPclub as a trading name of Better Retirement Group, which is.

I suppose you have two issues to consider.
Whether a transfer is in your best interests and if so, where to hold the SIPP.

You may find SIPPclub bundle the two together. In other words if you use them for the advice required by the FCA, you also have to use them as the SIPP provider.

mc2fool
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Re: DB Pension Review - Fees

#190300

Postby mc2fool » December 31st, 2018, 9:03 pm

JamieT wrote:Having just received my CETV I am considering using SippClub for my transfer but just need some clarification, if possible, from zico and LongWayToGo as to who they actually used.

As I'm new to this site I cannot quote links, but the link provided by mc2fool, and which zico and LongWayToGo appear to have used, is for SippClub based at Warnham, West Sussex.

However, this appears to be the same SippClub that is not covered by the FCA in the link provided by ursaminortaur

Better Retirement Group are based in Northampton.

Thanks in advance for any advice as I'm sure that I'm missing something, but I just need clarification before proceeding.

Ah, I'd forgotten all about this thread!

I too used them, starting on the 13th of May with submitting the form at the link I put up previously, and I received the dosh in my SIPP on the 8th of August. It's the Better Retirement Group that actually does it all. They needed a gentle prod or two along the way, and there's some mega forms to fill in, but nothing too onerous.

Alaric wrote:I suppose you have two issues to consider.
Whether a transfer is in your best interests and if so, where to hold the SIPP.

You may find SIPPclub bundle the two together. In other words if you use them for the advice required by the FCA, you also have to use them as the SIPP provider.

No, they don't run SIPPs. You are free to use which ever SIPP you like. I opened one with IWeb and transferred my DB pension into that.

JamieT
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Re: DB Pension Review - Fees

#190547

Postby JamieT » January 2nd, 2019, 1:25 pm

Thanks Alaric and mc2fool.

It's reassuring that everything went smoothly for you, mc2fool, so I'll now proceed with my request for a transfer.

I now need to find a suitable SIPP that meets my requirements for a short term 'safe' investment for the next year or so.

zico
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Re: DB Pension Review - Fees

#191318

Postby zico » January 5th, 2019, 6:15 pm

My attempted pension transfers were a total fiasco, so I'll now have to wait until March to try again.
Partly my fault, and partly Halifax/Scottish Widows' fault for being very unhelpful, though Better Retirement Group did make a few errors on the forms - I picked up some of these, but missed others.

I'd suggest getting a contact name/number/email at your receiving scheme to help things go smoothly.

JamieT
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Re: DB Pension Review - Fees

#191558

Postby JamieT » January 6th, 2019, 6:42 pm

zico wrote:My attempted pension transfers were a total fiasco, so I'll now have to wait until March to try again.
Partly my fault, and partly Halifax/Scottish Widows' fault for being very unhelpful, though Better Retirement Group did make a few errors on the forms - I picked up some of these, but missed others.

I'd suggest getting a contact name/number/email at your receiving scheme to help things go smoothly.


I assume that the 3 month guarantee on your CETV ran out.

If so, did BRG charge for the work that they had already completed, and did you consider paying for another CETV?

zico
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Re: DB Pension Review - Fees

#191731

Postby zico » January 7th, 2019, 4:44 pm

Yes, the 3 month time limit ran out. BRG haven't charged me for the work done, and I'll use them later on in 2019 to make the transfer.

StevieR
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Re: DB Pension Review - Fees

#202139

Postby StevieR » February 18th, 2019, 4:07 pm

I'll be interested to hear how more people get on with Sippclub. I have just requested a transfer value for my Final Salary scheme, so I may or may not be likely to follow through and implement a transfer, but the charges for Sippclub seem much more reasonable than the IFAs I have spoken to

Clitheroekid
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Re: DB Pension Review - Fees

#202336

Postby Clitheroekid » February 19th, 2019, 1:49 pm

LongWayToGo wrote:The fee is 1% of transfer value (subject to minimum charge of £1995 and max of £7500) but is charged only if transfer is approved and is only payable once transfer into your scheme of choice is complete. !

Whilst the attraction is very clear compared to paying for advice that might tell you to leave things as they are I would have to ask whether this doesn't generate an inherent conflict of interest.

It's obviously very much in their interests to recommend a transfer, and there must be an extremely strong temptation to bend over backwards to find a justification for such a recommendation, just as some IFA's persuade customers that when they say they're looking for low risk investments they really mean medium risk, so as to justify advising them into products that pay higher commission.

It's a bit like going to a doctor who only gets paid if he recommends an operation!

I'm not criticising this individual firm, as I know nothing about them, but it does seem to me a potentially dangerous business model for a so called independent adviser to run.

ursaminortaur
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Re: DB Pension Review - Fees

#202360

Postby ursaminortaur » February 19th, 2019, 3:12 pm

Clitheroekid wrote:
LongWayToGo wrote:The fee is 1% of transfer value (subject to minimum charge of £1995 and max of £7500) but is charged only if transfer is approved and is only payable once transfer into your scheme of choice is complete. !

Whilst the attraction is very clear compared to paying for advice that might tell you to leave things as they are I would have to ask whether this doesn't generate an inherent conflict of interest.

It's obviously very much in their interests to recommend a transfer, and there must be an extremely strong temptation to bend over backwards to find a justification for such a recommendation, just as some IFA's persuade customers that when they say they're looking for low risk investments they really mean medium risk, so as to justify advising them into products that pay higher commission.

It's a bit like going to a doctor who only gets paid if he recommends an operation!

I'm not criticising this individual firm, as I know nothing about them, but it does seem to me a potentially dangerous business model for a so called independent adviser to run.


Although it hasn't happened yet there are moves looking at banning such contingent charging

https://corporate-adviser.com/dwp-select-committee-launches-inquiry-into-contingent-charging/

The Department for Work and Pensions Select Committee has announced an inquiry into the role of contingent charging on pension transfer advice. It is inviting interested parties to submit written evidence on this issue by January 31.
.
.
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Under pension rules anyone transferring a DB pension worth more than £30,000 must receive independent financial advice. But these advisers are currently allowed to use a contingent charging model, which means they will only be paid – or be paid significantly more – if the recommendation is to transfer assets.

The Work and Pensions Select Committee has previously recommended that this charging structure should be banned for DB pension transfers. However the FCA has stopped short of imposing a ban on contingent charging saying it needs to “carry out further analysis of the issue”.

JamieT
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Re: DB Pension Review - Fees

#207320

Postby JamieT » March 13th, 2019, 6:55 am

StevieR wrote:I'll be interested to hear how more people get on with Sippclub. I have just requested a transfer value for my Final Salary scheme, so I may or may not be likely to follow through and implement a transfer, but the charges for Sippclub seem much more reasonable than the IFAs I have spoken to


I couldn't fault either SIPPClub or BRG Ltd.

My transfer was completed well within the 3 month guarantee of the CETV, and the whole process was extremely efficient.


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