DB Pension Transfer - Advisor Fees
Discussion
I did one 18 months ago which was a very large sum of money and the actual transfer advice cost me £3k, albeit with a nice little earner added on by my then-pensions advisor to put me in touch with the independent 3rd party advisor (I sacked the pension advisor immediately after!).
I'm just doing another one currently, the CETV is around £100k, and the same 3rd party advisor I used last year initially told me that due to even more regulatory/risk changes they now have to charge a minimum of £8.5k, and that on that basis he really didn't think he should be advising me as it was just too much in comparison to the CETV. I spoke to other people and eventually went back to the original guy and negotiated a one-off deal with him at a lower price as (a) for him, I was a previous customer and (b) for me I have the confidence that he will see it through without any unnecessary aggro.
I've heard that there are places which will charge £4k-ish but even if those fees are true/correct that's still a big % of your pot, so as above they may decline.
I'm just doing another one currently, the CETV is around £100k, and the same 3rd party advisor I used last year initially told me that due to even more regulatory/risk changes they now have to charge a minimum of £8.5k, and that on that basis he really didn't think he should be advising me as it was just too much in comparison to the CETV. I spoke to other people and eventually went back to the original guy and negotiated a one-off deal with him at a lower price as (a) for him, I was a previous customer and (b) for me I have the confidence that he will see it through without any unnecessary aggro.
I've heard that there are places which will charge £4k-ish but even if those fees are true/correct that's still a big % of your pot, so as above they may decline.
churchie2856 said:
I'm looking to transfrer a DB pension to a DC scheme. The transfer value is only marginally above the £30K threshold over which one must seek FCA regulated financial advice.
How much would one typically have to pay for such advice?
A friend of mine did a transfer earlier this year, £200k CETV, £5k charges for the 'advice & certificate'...the advice was don't move it, moved it into a SIPP...How much would one typically have to pay for such advice?
It was difficult finding somewhere that would issue the certificate, but Fidelity were obliging, and the SIPP is with AJBell
CharlesElliott said:
I was also going to suggest Fidelity - not used them for this myself, but they seem to have a 'low' cost service in this regard vs other providers.
On the advice of the 3rd party DB transfer guy I mentioned above, before I agreed the deal with him he suggested that I speak to Fidelity.I'm not sure how much I can say on here without falling foul of the rules, but I would add that after several very difficult weeks trying to deal with them, including having to escalate within their organisation before I found someone who actually understood what a DB transfer is, and means, I went back to the 3rd party guy and agreed to pay his (revised down) fee.
The less well-briefed of Fidelity's staff will tell you repeatedly that there is no charge for a DB transfer, however many times you ask the question and re-frame it to make your request clearer; at best, untrue, at worst, well, I'll leave you to decide.
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