Since the 1st of October there are now two forms of advice available to you as a client. These are as follows:
- Abridged advice
- Pension Transfer Advice
Abridged Advice will include the initial stages of the usual advice process as shown in the services section of our website. Based on this analysis, advisers may provide you with a personal recommendation to remain in the scheme if it’s clearly beneficial to do so.
You will either receive a recommendation not to transfer and to remain in the current Defined Benefit pension scheme, or alternatively you will be informed it is unclear whether or not it is beneficial to transfer from the information we have collected. In the latter scenario, you will be provided with the option of continuing with the Pension Transfer Advice process should you wish.
This method of advice is useful if you are unsure about how best to proceed with your retirement plans and simply want to know whether your current arrangement can be used to meet all goals and objectives, or if a more detailed look is needed into your existing arrangement or potential pension transfer.
It is important to understand that by solely completing Abridged Advice, you will not be able to proceed with a transfer of your pension. You are required to proceed to full advice (Pension Transfer Advice) before the criteria for section 53E* which enables you to transfer your pension has been met.
The cost of Abridged Advice is £1,000 and this fee is chargeable on a non-contingent basis. This means you will be charged, irrespective of whether or not the advice is to remain in your existing Defined Benefit arrangement, or it is unclear if you could benefit from a transfer. The Abridged Advice fee will be deducted from the overall fees if you choose to proceed to Pension Transfer Advice.
Abridged advice fee = £1,000
Full Pension Transfer Advice
Abridged Advice will look at your current situation and whether or not you should remain in your current arrangement. It will not consider the implications of any potential transfer. Pension Transfer Advice will look in depth at your Defined Benefit pension and provide a full analysis of the scheme along with cashflow reports, detailing the projection of how your retirement plans can be supported by the income your scheme may provide. It will also look at any potential transfer in detail and assess your goals and objectives in accordance with each scenario and provide advice on how best to proceed.
In order to proceed with a transfer of your Defined Benefit pension you are required to take Pension Transfer Advice, because Abridged Advice is not sufficient for you to proceed.
The costs of Pension Transfer Advice are as follows:
|Transfer value between||Fixed fee payable|
|£100,000 - £250,000||£5,950|
|£250,000 - £500,000||£8,450|
|£500,000 - £1 million||£10,950|
|£1 million +||Please contact us|
These charges are non-contingent, meaning they will be payable irrespective of the advice outcome. If our advice is positive, we will assist you to transfer your pension to our advised destination. In the event we provide you with a negative recommendation we will be unable to assist you further.
*Article 53E of the FCA’s Regulated Activities Order of providing advice on the transfer of safeguarded benefits