Compulsory Advice required from an IFA

[rkss]

Has anyone actually used the services of an IFA yet ?
If so is this advice / report required for AVC's and Cash balance scheme for amounts over £30k ?

I put this question to pensions helpline and this is the response I received as I had been receiving conflicting information
when calling pensions.
"Any transfer of benefits over £30,000 must have IFA support to accept any transfer request for members and the forms requesting the transfer of Cash Balance and AVC is included in the options for you request these monies to be moved."

I had assumed that one did not require advice form an IFA when transferring any amount from say Scottish Widows to a pension provider for drawdown.
If I am not mistaken I the above reply as , any amount over £30k from AVC/Cash balance one must get advice from an IFA ?

If anyone can provide actual experience and if they don't mind which IFA they used / charges they applied , I| know they base them on the amount you
have invested.
If at all avoidable to reduce any extra charges or at least to minimise them, I would be looking at not taking any tax free amounts from the AVC and cash balance scheme.
Total amounts would be approx. £74 from each scheme.

[Hyrrokkin]

Cash balance - As i understand yes you do need IFA 'advice if over £30,000

AVC - No you do not need IFA 'advice' at all no matter the amount

Someone will come along and correct me but pretty sure that is the case

In fact i tried to transfer my AVC Flexiplan/Bonusplan a few weeks ago (Did not happen for reasons not related to the above)

[RobertT]

The Cash Balance scheme(DBCBS) is defined benefit and you will need IFA approval if it's value is £30k+. The same would apply to your main RMPP pension should you wish to transfer that.

You'll be lucky to find an IFA that first wants to do it, and then one that doesn't charge the earth.
Read July 1981's experience here: viewtopic.php?p=1101106#p1101106

AVC's are defined contribution and DC pensions don't normally need an IFA to transfer if over £30k. The only possible exception being if the pension has safeguarded benefits such as a guaranteed annuity rate, which won't apply to any RM AVC's afaik.

When I transferred one of my two AVC's a while back(under £30k), the RMPP gave me the option of receiving guidance from Pension Wise before I proceeded, which was totally voluntary.
I declined and that decision didn't affect the transfer in any way!

Transferring RMPP benefits is mentioned on their website here: https://www.royalmailpensionplan.co.uk/ ... rring-out/

[Steve_claret]

When I transferred one of my two AVC's a while back(under £30k), the RMPP gave me the option of receiving guidance from Pension Wise before I proceeded, which was totally voluntary.
I declined and that decision didn't affect the transfer in any way!

I did use Pension Wise when I returned my NRA65 options a couple of months ago mainly for advice on my AVC's. As for the advice I got then I can't say they told me anything that I didn't already know. I get the impression it is a government box ticking exercise which is aimed more at people who have absolutely no knowledge of pensions which may be OK for a lot of people. Just not for me.

[RobertT]

Pension Wise are free and only provide guidance. If you want proper advice tailored to your own circumstances, then you need an IFA.

[Duran]

The Cash Balance scheme(DBCBS) is defined benefit and you will need IFA approval if it's value is £30k+. The same would apply to your main RMPP pension should you wish to transfer that.

You'll be lucky to find an IFA that first wants to do it, and then one that doesn't charge the earth.
Read July 1981's experience here: viewtopic.php?p=1101106#p1101106

AVC's are defined contribution and DC pensions don't normally need an IFA to transfer if over £30k. The only possible exception being if the pension has safeguarded benefits such as a guaranteed annuity rate, which won't apply to any RM AVC's afaik.

When I transferred one of my two AVC's a while back(under £30k), the RMPP gave me the option of receiving guidance from Pension Wise before I proceeded, which was totally voluntary.
I declined and that decision didn't affect the transfer in any way!

Transferring RMPP benefits is mentioned on their website here: https://www.royalmailpensionplan.co.uk/ ... rring-out/

Took mine August. Reduced to £45k for taking it at 59yrs old. Nobody told me i need IFA approval it was paid into my bank 25% tax free, 75% taxable.

[RobertT]

Took mine August. Reduced to £45k for taking it at 59yrs old. Nobody told me i need IFA approval it was paid into my bank 25% tax free, 75% taxable.

You need IFA approval if the DBCBS is worth £30k+ and you want to transfer it to a personal pension.

It doesn't sound as if you did that?