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Anyone on here transferred out of a lapsed DB scheme into a SIPP? I know that you wouldn't usually go down this route, but because Gilts are historically low it means the calculation for a transfer out of my particular scheme are very generous.
So far I have been quoted £2,500 flat fee by one IFA and £5,000 minimum with a cap of £12,000 by another 8-|. Cheshire based.
Just doing so now. Can be very complicated - see my IFA thread!
If over £30k you need to get an IFA report on the risks / benefits which will cost £2-£5k. it doesn't actually matter what the conclusion is, they can say you'd be mad to leave and you can still transfer (assuming the SIPP will accept it, which isn't always the case).
However, generally the recommendation is don't.
I'm only doing so as my DB fell into the Pension Protection Fund and exited with all the index linking removed, so it's a Gold Plated Final Salary scheme will all the gold plating stripped off, which isn't anywhere as good as it was. Even then the numbers are fairly even, I'm not guaranteed to be better off in a SIPP. I'm mainly moving in case I die. With the DB if I die, the wife gets 50% pension (without index linking). With a SIPP, she gets 100% tax free which she can access as draw down or buy her own annuity. Interestingly the IFA agreed this was key reason for moving and then completely left it off his report...
I paid an IFA £500 to do mine. I told him I didn't care what he thought just so long as he was prepared to facilitate it.
Apologies for starting another thread, I've given up on the Search function. The scheme I'm in is Barclays and people are transferring out in their hundreds due to the good transfer values. Also, Barclays have decided to move the pension scheme out of the Retail arm and into the 'Casino' arm which has me worried long term although it will be protected to some extent if it goes pop
All DB pensions are underwritten by the Pension Protection Fund. If you are deferred you take a 10% hit. Pension contribution before 4 Apr 1997 loose index linking when the pension matures, but not whilst invested. So if you paid in after 1997, worst case you stand to loose 10%, which is still pretty good. Barclays is unlikely to be allowed to go bust..
The scheme I’m in is Barclays and people are transferring out in their hundreds due to the good transfer values.
But buying the same guaranteed benefits is very expensive, hence the high transfer values! You could do better in a SIPP with luck, but a few bad investment choices and good genes, could see you running out of cash in your 80s...
I’ve just transferred my Barclays one out, Shinton, for the same reason as footflaps. Nothing to do with ringfencing (where being outside is the least risky place for it .... and I’m long gone from Barclays to have a bias).