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Call Richard Cook: 07770 575 122

email: richard@theinvestmentandretirementcoach.co.uk

Pension transfers are now worth more than the average home!

If you are in the fortunate position of having been in a final salary scheme this is really good news to which you should be paying attention.

Recent research from insurer Royal London found that the most common transfer value was in the £250,000 to £500,000 range. That compares to an average house price of £216,000.

Whilst the number of transfers have increased by more than 50% in the last year, the actual number of transfers compared to those who still have benefits on old schemes is tiny, which is a real shame.

Transfers are not for everyone but the advantages/ disadvantages should certainly be explored and understood.

The four main reasons why people transfer in my experience are as follows;-

  • Greater early retirement flexibility
  • Larger, earlier and more flexible tax free cash sums
  • The opportunity to make the most of the early years of retirement
  • Avoiding the situation where there is only a 50% widows pension and all the fund is lost on the second death

Do be careful though. Some advisers are charging up to 3% of the transfer value to facilitate transfers and one well-known firm will impose a mind blowing 6% transfer penalty if you move on to someone else.

The feedback from clients I have guided through this minefield has been extremely positive.

The first thing to do is to ask for a transfer value quotation which is then guaranteed for three months whilst you take guidance/advice and make up your mind.

Just text PENSION TRANSFER to 07770 575122 and I will send you a sample letter of request for a guaranteed pension transfer figure that you can send to the administrators of your scheme. It is important to get all the information you will need up front as the guarantee period will start to run out very quickly if you have to go back for more information.

This is what one client said about working with me:

Many thanks for your help and I would be very happy to introduce future cases to you. I wish I had known you before, as I have friends who have gone through horrendous processes. One paid £27k in fees and missed the deadline which also cost him £23k off the transfer value.

 

IMPORTANT INFORMATION
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122

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2 Comments

  • Neil Gayler September 6, 2017 at 10:47 am

    Hello Richard,

    In my experience, other than for modest funds, pension providers require an AUTHORISED financial adviser to confirm that advice has been given before they will release funds.

    It’s great that you’re highlighting the extortionate fees that some advisers charge but implying that people can effect transfers themselves with “guidance” rather than advice is, in my view, misleading.

    Kind regards,

    Neil

    • Richard Cook September 6, 2017 at 11:52 am

      Thanks Neil,

      You are of course totally correct. If there was an implication that transfers, other than for small funds, could be dealt with without a report from an Authorised adviser I apologise. The purpose of the blog is only to make people aware of the issues and to encourage them to take advice/guidance.

      Thanks,

      Richard

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