Transferring £30k+ D.B. Pension to SIPP, Any Way to Avoid Ma
Discussion
Hi all
I’m 34 years old and have *just* over £30k (£30,313 to be exact) in a Defined Benefit pension with a company I worked for when I was very young.
I have now moved up the career ladder and on to other companies and have two other pensions running, so three in total. One is with my current employer and on from my previous (middle) employer.
I am a confident, knowledgeable amateur investor, and I invest a reasonable size portfolio on my own, with results that I’m happy with. I’ve been doing this for a while and have a huge interest in it and know the risks associated with taking control of my own investments.
I would like to transfer the money out of my first pension to a SIPP, in order that I have control over where the £30k is invested. However, as it is just over the £30k threshold, I’m being told I need to consult an IFA for a full review and formal documented advice. It appears this may cost in the region of £1,000 to £2,000, which I feel is unreasonable due to the small amount in question, the fact that it is only ~£300 over the threshold, and the fact that I am going to disregard the advice and go with a SIPP anyway, as I’m fully aware of all the consequences.
My questions are:
Is there any way to get round this?
Would it be possible to only transfer £29,999 and request them to give the remaining £314 to charity?
Could I transfer £29,999 and leave £314 in the initial pension fund?
Is there a way to obtain this financial advice any more cheaply, on a ‘fast-track’ basis?
It seems that the charges for financial advice will be out of proportion to the amount in question. Any suggestions would be gratefully received.
I’m 34 years old and have *just* over £30k (£30,313 to be exact) in a Defined Benefit pension with a company I worked for when I was very young.
I have now moved up the career ladder and on to other companies and have two other pensions running, so three in total. One is with my current employer and on from my previous (middle) employer.
I am a confident, knowledgeable amateur investor, and I invest a reasonable size portfolio on my own, with results that I’m happy with. I’ve been doing this for a while and have a huge interest in it and know the risks associated with taking control of my own investments.
I would like to transfer the money out of my first pension to a SIPP, in order that I have control over where the £30k is invested. However, as it is just over the £30k threshold, I’m being told I need to consult an IFA for a full review and formal documented advice. It appears this may cost in the region of £1,000 to £2,000, which I feel is unreasonable due to the small amount in question, the fact that it is only ~£300 over the threshold, and the fact that I am going to disregard the advice and go with a SIPP anyway, as I’m fully aware of all the consequences.
My questions are:
Is there any way to get round this?
Would it be possible to only transfer £29,999 and request them to give the remaining £314 to charity?
Could I transfer £29,999 and leave £314 in the initial pension fund?
Is there a way to obtain this financial advice any more cheaply, on a ‘fast-track’ basis?
It seems that the charges for financial advice will be out of proportion to the amount in question. Any suggestions would be gratefully received.
I am leaving my two other pensions to remain as managed pensions which I will have no input towards. It is only the £30k from the first one that I am talking about.
We are only talking about whether I receive the equivalent of £3,000 to £4,000 one off lump sum and then £10 a week when I retire, or don't receive that. So in the grand scheme of things I don't think it's a huge risk...
I would be happy to just transfer the £29,999, I just didn't know whether it would be possible or whether anyone else had any experience of doing something similar.
We are only talking about whether I receive the equivalent of £3,000 to £4,000 one off lump sum and then £10 a week when I retire, or don't receive that. So in the grand scheme of things I don't think it's a huge risk...
I would be happy to just transfer the £29,999, I just didn't know whether it would be possible or whether anyone else had any experience of doing something similar.
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