MARK’S PENSION TRANSFER DILEMMA
MARK’S PENSION TRANSFER DILEMMA
Mark had the opportunity to transfer his company pension. He’d seen friends around him hang up their work boots for a while now.
Enjoying long lazy days touring the country in the family campervan. Or cruising round the crystal clear, turquoise waters of the Mediterranean
Some had described the feeling of freedom like winning the lottery. Well, they now had more money in their own pension than they could ever have dreamed about. And what’s more, to spend as they wish.
One had described how helping the kids get on the housing ladder had brought a feeling of pride like no other. Mortgage paid off too said another, that’s a blessed relief!
IT WAS ALL VERY CONFUSING.
Others waxed lyrical about the feeling a nest egg gives you. Not wanting to be reckless with it. Never that, knowing it needs to last a lifetime. No, the simple primeval instinct of security – the comfort which can only come from knowing you’ll always have enough.
Mark also knew the company pension scheme had one major advantage – the income was guaranteed.
He’d also heard some of his colleagues were turned down by their advisor, unable to transfer their company pensions. He couldn’t figure out why it seemed ok for some and not for others?
He kept thinking he hadn’t worked all his life to risk trashing his pension now. What if a transfer didn’t work out or he lost all his money on the stock market?
On the other hand he thought, there’s only one life we know about. It’s the one I have now with the people who are dear to me. And this is my only chance to be in charge of my own future.
Sitting on the fence wasn’t his style. He needed to know for sure. Not spend more time worrying about it.
Mark came to our offices to talk everything through. His aim was to find out if it was possible to transfer his pension and continue working. He wanted to explore if it was the right option for his retirement circumstances. He also wanted to know how his money would be invested and managed if he did transfer.
Like us all he wanted reassurance his money wouldn’t run out, ever.
THE 3 MUST HAVES FOR
PENSION TRANSFER ADVICE
Please ask these 3 questions of any advisors you approach. Rest assured, here at Oaklands Wealth we meet all 3 criteria, with our specialists having advised on hundreds of pension transfer cases.
Also remember – Pension transfer valuations expire in 3 months. So pick a firm with efficient processes.
Your next step is simple – schedule a call with one of our friendly Pension Transfer Specialists now.
Advisors must have the FCA approved qualifications to be Pension Transfer Specialists
The firm they work for must have FCA permissions to advise on pension transfers.
The firm must have sufficient levels of Professional Indemnity (PI) insurance to protect you.
THE NEW 3 STAGE PENSION TRANSFER PROCESS
STAGE 1 TRIAGE
- Upon enquiry we’ll check if you have our minimum investment value of £650,000.
- Next, we’ll send you a brochure to explain the different types of pensions including information about the State Pension.
- At this stage we’ll book a 45 minute Discovery Meeting to find out the reasons why you are considering transferring your company pension.
- If upon consideration you wish to look into this further you move onto Stage 2 – Abridged Advice.
There is no charge for this stage.
STAGE 2 ABRIDGED ADVICE
There can only be 2 outcomes of this meeting:
- Our advisors recommend you stay in your existing pension scheme. Or,
- We recommend you proceed to Stage 3 – Full Advice.
There is no charge for this stage.
STAGE 3 FULL ADVICE
At this stage we look into your situation and needs in much greater detail.
We also do a comparison of benefits from your current scheme against a personal pension. To aid our analysis we carry out full cashflow planning.
There is a fee of £7,000 for this stage, regardless of whether our advisors recommend you to transfer your pension or to remain in your existing scheme. If the recommendation is to transfer this fee may be taken from your investments.
These additional steps need to be read in conjunction with our client journey.
THE 5 MOST IMPORTANT PENSION TRANSFER FACTS
It is not right for everyone. It depends entirely on your own situation. Nobody else’s.
If you do transfer, from age 55 you can draw 25% tax free cash plus income, subject to tax, as you wish.
A Pension Transfer Specialist must analyse your needs and objectives. They are not obliged to transfer.
If you do transfer to a personal pension it is yours to leave to anyone you nominate after your death.
There are 3 stages to transfer advice – 1. Triage, 2. Abridged Advice, 3. Full Advice.
3 STEPS TO CONSIDER A PENSION TRANSFER
STEP 1
OBTAINING YOUR CETV
Before you can start the advice process, you need to get a Transfer Value from your scheme. This is the amount you will get if you transfer.
If you’re thinking of transferring from a Defined Benefit scheme, you should approach your scheme administrator or pension provider.
They will provide you with a Statement of Entitlement to verify if you are eligible for a Cash equivalent transfer value (CETV), also known as a transfer value.
If you are eligible for a transfer they will issue the CETV in the form of a written document which sets out your transfer value, together with details of the benefits you have built up under the scheme.
STEP 2
CONSULT A PENSION TRANSFER SPECIALIST
If your transfer is valued at more than £30,000, then you must consult an advice firm that is authorised by the FCA and has the permissions to offer pension transfer advice.
Firms who can offer this advice are on the Financial Services Register as ‘advising on pension transfers and opt-outs’. Only Independent Financial Advisors can offer the full range of financial products and providers.
Please see a summary of our permissions to carry out such work on our accreditations page.
STEP 3
TRANSFERRING YOUR PENSION
If you go to the Full Advice stage and your advisor recommends a transfer they will manage the transfers into a suitable personal pension which you will have control of.
If you decide to transfer to a new scheme, your scheme administrator or pension provider must pay the benefits across to the new scheme within six months from the start of the transfer process.
From then on, it is critical you have your pension properly managed throughout your lifetime to ensure it is invested in funds which are appropriate to your risk profile and other circumstances. A sound cashflow plan is also vital to ensure you don’t ever run out of money.
OUR INDEPENDENT FINANCIAL ADVISORS
THINKING OF MOVING FROM YOUR EXISTING ADVISOR?
It’s easy to move on from another advisor.
We’ll handle everything.
All that’s needed is for you to sign some letters of authorisation and we’ll do the rest.
None of your investments will be switched into new funds until you’ve agreed with our recommendations and you’re fully happy with any changes we propose.
7 KEY FEATURES OF THE OAKLANDS WEALTH MANAGEMENT SERVICE
British Standard BS 8577 Awarded Service
12 Month Money Back Service Guarantee
Lifetime Cashflow Planning
Risk Adjusted Personal Investment Portfolio
ISO 222222 Certified Financial Advisors
Monthly Fund Analysis
2 Investment Portfolio Reviews Per Year
A WORD FROM OUR CLIENTS...
“Deciding to retire early I needed professional ongoing advice to navigate our financial future. Upon visiting Oaklands, the options were clearly explained and a risk analysis undertaken. Even during these strange times, regular reviews and conversations are taking place and I felt I made the right decision choosing Oaklands.”
A WORD FROM OUR CLIENTS...
“Upon leaving Rolls-Royce after 26 years, I wanted to transfer my pension into an investment fund but find anything investment related a ‘black art’. Helen reviewed my circumstances and risk profile to develop my portfolio. Every Oaklands’ team member I’ve seen is an established professional and I would recommend Helen and her team in a heartbeat.”
A FRIEND FOR YOUR FINANCIAL JOURNEY...
THIS IS NOT A DIY SERVICE – WE TAKE FULL RESPONSIBILITY FOR SETTING UP YOUR PENSIONS AND SAVINGS. FOR LIFE.
No half measures. We don’t set it up then leave you all at sea. We manage your investments ongoing and hold ourselves accountable for steering you through your financial journey.
This phrase came from a client who said that’s exactly what we felt like to him, he said “you are like a friend or good neighbour who’s always got my best interests at heart.”
Whatever the reason you come to us we care. We really care. Like it’s our own money.
Tidying up bit and bobs of pensions and putting them neatly in a pot you have full control over.
Maybe transferring a final salary pension if your objectives are better met with your own pension.
Making sure you get all the tax efficiencies legally available to you to enhance your money.
Pointing the microscope on 3,000+ funds and finding the best ones to secure your retirement.
