BA pilots transferring out to SIPPs

[millen]

Article today claiming high level of interest from gold-plated BA pilots transferring out of NAPS https://www.cityam.com/fear-of-company-collapse-dr...
Notable that many are going through SJP for transfer advice despite the high fees.

[emicen]

Isn’t the Al Rush commenting on that story the poster known as Ginge R round these parts?

[rigga]

Mate at works wife was a BA hostess, who transfered her pension out very recently, she affirmed that a lot of pilots were doing the same.

[number2]

4.5pc initisl charge for advice... product fees and it goes on... no better than double glazing salesman. I struggle to believe I read that article and it wasn't a spot l spoof. The FCA needs to raise its game.

[Insurancejon]

It’s the insane cost of the PI insurance for that level of IFA that is the issue....at least 1.5% of that is underwriting the advice

[craig1912]

Insurancejon said:

It’s the insane cost of the PI insurance for that level of IFA that is the issue....at least 1.5% of that is underwriting the advice

Although SJP aren’t an IFA, although agree that PI adds a premium to the fees

[Enut]

craig1912 said:

Insurancejon said:

It’s the insane cost of the PI insurance for that level of IFA that is the issue....at least 1.5% of that is underwriting the advice

Although SJP aren’t an IFA, although agree that PI adds a premium to the fees

It amazes me that people use SJP at all, even more staggering when they are considering moving what are likely to be very large pension pots.

[LeoSayer]

The viability of the company is always a concern for DB scheme members.

Whilst the Pension Protection Fund does offer some protections, they apply a 10% haircut, a £33k cap and further restrictions as well.

For those who were considering taking the DB transfer anyway, the current crisis has acted as a catalyst to get things moving.

In my experience, SJP are good at selecting companies with high paid staff to generate business.

[mikeiow]

Enut said:

craig1912 said:

Insurancejon said:

It’s the insane cost of the PI insurance for that level of IFA that is the issue....at least 1.5% of that is underwriting the advice

Although SJP aren’t an IFA, although agree that PI adds a premium to the fees

It amazes me that people use SJP at all, even more staggering when they are considering moving what are likely to be very large pension pots.

Yup....if you’re going to take advice, use an IFA....

[mike9009]

Insurancejon said:

It’s the insane cost of the PI insurance for that level of IFA that is the issue....at least 1.5% of that is underwriting the advice

Extrapolating a little bit, but does that mean 1.5% of people receiving advice lose all their pension pots???

[anonymous-user]

Insurancejon said:

It’s the insane cost of the PI insurance for that level of IFA that is the issue....at least 1.5% of that is underwriting the advice

Don't know for sure, but will SJP partnerships need their own PI insurance? I imagine it goes through SJP crentrally (as in the partners are not directly authorise by the FCA and SJP operates as a network). I don't know whether SJP carries traditional PI centrally or self insures?

[fourstardan]

rigga said:

Mate at works wife was a BA hostess, who transfered her pension out very recently, she affirmed that a lot of pilots were doing the same.

Its believable...a neighbour used to be with them who I spoke to a lot about the current affairs and I'm amazed they can fly the planes with the amount that goes on in their heads thinking about swindling the BA benefits.

[Zigster]

mike9009 said:

Extrapolating a little bit, but does that mean 1.5% of people receiving advice lose all their pension pots???

No. It’s not all or nothing - it’s very unlikely someone would lose all of their pension pot. It’s more that there could be a claim that they could have done better if they had stayed in the DB scheme, and get some compo reflecting the difference.

[mike9009]

Zigster said:

mike9009 said:

Extrapolating a little bit, but does that mean 1.5% of people receiving advice lose all their pension pots???

No. It’s not all or nothing - it’s very unlikely someone would lose all of their pension pot. It’s more that there could be a claim that they could have done better if they had stayed in the DB scheme, and get some compo reflecting the difference.

Ah, I see.... Everyone claws back 1.5% from poor advice.......

I suspect the truth lies somewhere between, but you knew that.