Frequently asked questions about DB Transfers
What experience do you have with DB Transfers?
Claire Novakovic is the co-founder of Accudo Investments and the dedicated in-house pension transfer specialist. She is a Chartered Financial Advisor with the CII (CFA) and also a qualified Pension Transfer Specialist (holding the relevant FCA permissions to conduct pension transfer business including defined benefit schemes). With over a decade of experience in pension consulting, she is one of the top authorities on pension transfers and consolidation.
Financial advisors make a lot more money over time if you transfer than if you don’t. How do you manage this conflict of interest?
Unlike many financial advice companies, Accudo Investments does not operate a policy of contingent charging. We charge £1,750 for our Pension Transfer Report, regardless of whether a pension transfer is recommended or not and we feel it is imperative to do so in order to look into this thoroughly and professionally on your behalf and offer you the best possible advice which in some cases will be to maintain your existing scheme. Sometimes clients may be put off by the thought of paying to maintain what is already held, however if after careful analysis this appears the right thing to do, you will have paid to make an informed decision and we believe this will be money well spent. We will also carefully analyse whether or not you would be better to transfer into your work place pension scheme as opposed to a personal pension recommended by us, to avoid any conflict of interest surrounding ongoing fees.
What are the risks of staying in a Defined Benefit Scheme?
If your employer becomes insolvent and doesn’t have sufficient money left in the pension company fund to pay the promised pension you might receive less than the full amount that you have accumulated.
Who is likely to benefit from a DB transfer?
Those who are most likely to benefit from consolidating or transferring their final salary scheme are those who aren’t relying exclusively on the scheme for their full retirement income. They often have other pensions and investments. Alternatively they might be looking for wealth or taxation planning by taking a pension sooner or later than retirement age.