After being diagnosed with MSA in Early August my condition has worsened quite dramatically to the point that I’ve decided to retire earlier than originally planned. (Every cloud!) I’ve got a deferred Defined Benefits pension to due to mature in May 2024. I really don’t see the point in taking an annuity and would rather transfer it into a drawdown account where I would have better control now and the wife would when the inevitable happens.
I’ve made initial enquiries with independent financial advisors (whose advise you have to seek by law before you’re able to transfer any funds). Their fees range upwards from £4,000.
Has anyone experienced a way to transfer from a DB scheme to a drawdown one at a sensible cost?
All replies welcome
Many thanks & best regards
Mark
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My husband did the same with his pension (he was 50 when diagnosed) and was able to leave work on health grounds (he worked in heavy industry and was falling on a regular basis so it just wasn’t safe for him to remain in that environment) and access his pension at that point which has been a godsend as it has allowed us access to funds to make necessary alterations to our house (ground floor bedroom and wet room etc…).
With regard to the fees, they are ridiculous but unfortunately unavoidable - My husband paid £7,500 (we know someone who paid £15,000 😱 so the £4,000 you have been quoted sounds like a bargain.
Thank you for your reply, I’ve managed to find an advisor that will cost just under £4,000. Thankfully my other pensions are transferrable without costs. Why’ll I understand the need for advise, I’m just annoyed that I have no choice but to pay for advise about what I can do with my money.
Hope you & your husband are well, take care and thank you again for your reply.
Whilst only a licensed Independent Financial Advisor should give advice on pensions, I would be happy to discuss maximising your income - ensuring you're receiving all the benefits you are entitled to. This may be a good starting points as some benefits can be reduced if you are drawing down a pension. Also not all benefits are means-tested, for instance, new style Employment & Support Allowance is based on your national insurance contributions over the past 2-3 years.
Please don't hesitate to contact me at the MSA Trust if you'd like any advice, help or support. Kind regards
Sam Fitzgerald (Social Welfare Specialist - MSA Trust)
Hi Sam, thank you for your reply. I’ve managed to find an advisor that will cost just under £4,000. To-date I’ve managed to secure the ESA higher rate of £117.60 / week & currently appealing the lower PIP rates awarded. We’re looking into care allowance for my wife (who’s been a tower of strength throughout all of this. I know the ESA rates willl be affected once I start drawing my personal person(s). Everything else appears to be means-tested which we don’t qualify for. I’ll certainly contact you in the future for your financial help.
Hi Mark, you may want to check if you're eligible for a reduction in your Council Tax. Please see info below for eligibility criteria. Also, please get in touch if you'd like some help with your PIP appeal. You can email me direct at sam.fitzgerald@msatrust.org.uk
Disabled Band Reduction Scheme
You may be eligible for the scheme if you live in a larger property than you would need if you or another occupant were not disabled.
If you qualify, your bill will be reduced to the next lowest Council Tax band. For example, if your property is in Band D, you’ll pay the Band C rate. If your home is already in the lowest band (Band A), you’ll get a 17% discount on your Council Tax bill instead.
You’ll have to show that you have either:
an extra bathroom, kitchen or other room that you need for the disabled person
extra space inside the property for using a wheelchair
The property must be the main home of at least 1 disabled person. This can be an adult or a child - it does not have to be the person responsible for paying the Council Tax.
If you believe you're eligible, you should contact your local authority or check their website as many councils have an online application form.
Thank you for your reply. We’re waiting for the DWP to rule on the PIP Mandatory Reconsideration. If that’s unsuccessful I’ll contact you for advise on the appeal. (The whole process is such an ordeal with excessively long waiting times) but I’m hopeful we’ll get a favourable outcome 🤞. We’ve looked at the council tax but don’t qualify (yet). The only other thing I’m aware of is to claim for a zero "car tax"rate. (I know this won’t apply if we decide to use the higher mobility rate to finance a car.)
Thanks again for your time & advise, it really does help us 😀
Thank you for your reply. Whilst I think £4,000 is not unreasonable for financial advice on matters involving large sums on money, my argument is that I don’t have the choice to make the decision without incurring these costs. I simply want the transfer a deferred Defined Benefits pension into a SIPP drawdown one. I’m fully aware of the benfits a DBpension brings but I’m also aware of my circumstances and feel I can make that decision myself.
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