Transferring benefits from a DB pension scheme is a significant financial decision. To advise you properly, it’s important that we understand exactly who you are and what you want to achieve. We’ll gather relevant information about you, your family, your financial circumstances and pension arrangements so that we can advise you on whether you should remain in your DB pension scheme(s) or transfer to a new pension arrangement.
Relevant information will include:
- Your intentions for accessing your pension benefits
- Your personal and family circumstances, including information about your health
- Your financial circumstances, including your income and current/future outgoings
- Other assets, including pensions
- Your knowledge and experience of transferring and of investing
- Your attitude to the risks of giving up a guaranteed safeguarded income for a flexible one with no guarantees
- Your understanding of and attitude to investment risk
- Your future plans and priorities, including any relevant dates and amounts of income needed to achieve these
When we provide pension transfer advice, we will always start by assuming that a transfer, conversion or opt-out will not be suitable for you and only recommend to do so, if it can be clearly demonstrated that it is in your best interests.
We offer two types of service – an abridged advice service and full pension transfer advice.
We’ll discuss the options and help you to decide the services that are appropriate for you.
Our abridged advice service provides simple and straightforward advice about whether transferring your DB pension scheme in likely to be an appropriate option to consider, without incurring the full cost of our full pension transfer advice service.
We’ll gather information about your circumstances to determine whether or not it is viable for you to consider transferring your pension. Following abridged advice the outcome will be one of the following:
- We will recommend that you remain in your DB pension scheme(s) rather than transferring to a new pension arrangement.
- We will inform you that based on the information collected as part of the abridged advice process, we cannot establish whether it would be in your best interests to transfer your DB pension scheme(s).
We’ll provide you with a personalised written report explaining the outcome of the abridged advice process.
If, after receiving abridged advice, you want to continue to look at transferring to a new pension arrangement, you will need to take our full pension transfer advice service which will be subject to an additional charge.
Full pension transfer advice
We’ll gather detailed information about your circumstances and existing pension arrangements to determine whether or not it will be in your best interests to transfer out of your current DB pension scheme(s). This will include:
- An appropriate pension transfer analysis – this is a comparison of the benefits and options available under your existing DB pension scheme with the benefits and options available under the proposed new pension arrangements.
- A transfer value comparator – this will help you understand the underlying value of your DB pension scheme(s) and what you may be giving up if you transfer, convert or opt-out.
We will advise you on whether it is in your best interests to remain in your DB pension scheme(s) or transfer out to a new pension arrangement that we will recommend for you. We’ll provide you with a personalised written report explaining our recommendations.
Where we recommend a transfer we’ll advise on how the transferred funds may be invested, taking into account factors such as your attitude to investment risk and ability to absorb falls in the value of investment.
We will not implement or facilitate a DB pension transfer unless we provide the advice to do so, and we are satisfied that the transfer is in your best interests.
Where we recommend a transfer, once instructed to do so, we’ll liaise with both the old and new schemes to make the necessary transfer arrangements.
The table below sets out the amounts payable for our abridged advice service.
|We provide abridged advice and recommend that you do not transfer or convert your current DB pension scheme||£800|
|We start the abridged advice process, but based on the information collected, it’s unclear whether it would be in your best interests to transfer or convert your pension||£800|
|After receiving abridged advice, you decide to receive full pension transfer or conversion advice||£0 (we will waive the abridged advice fee as it will be incorporated in your full advice charge)|
Full pension transfer advice
Our charges fall into the following categories:
These are the upfront costs of our services and are payable regardless of whether we recommend that you remain in your DB pension scheme or to transfer.
The total initial charges for our full pension transfer advice service are:
Our charge is up to 2% of the pension we provide advice on, subject to a minimum fee of £4,000 and a maximum of £10,000.
Here are some examples of how our charges could apply:
- If your pension fund was £80,000 our fee would be our minimum fee = £4,000
- If your pension fund was £300,000, our fee would be 2% of £300,000 = £6,000
- If your pension fund was £800,000 our fee would be the maximum = £10,000
Where we recommend a pension transfer, it’s important to keep it under review so it can be adapted, where necessary, as your circumstances change. Our ongoing services are designed to do this. Our ongoing advice charges are based on a percentage of the funds being managed and will therefore increase as the value of the fund grows.
Our ongoing services are optional and can be cancelled at any time by informing us in writing but we do reserve the right to charge you for services we have provided before cancellation.
The ongoing charges for our full pension transfer advice service are:
- A monthly charge of 0.5% of the amount of funds being managed
- If your transfer value is £200,000, our ongoing charge will be £83.33 per month.
- If your transfer value is £600,000, our ongoing charge will be £250 per month.