Our Transfer Advice Process
A Potentially Life Changing Decision
At Sancus Retirement Planning we operate a version of a casualty ward triage system!
The initial thought for us is that, if the income that could be generated from the Final Salary Scheme forms almost all of the client’s income stream in retirement and there is no other additional income, either now or in retirement, then it is unlikely that we would recommend a transfer.
Our logic of applying a triage process is that this will result in the client having a perfect understanding of what they are considering, and once satisfied, both parties can move forward and enter an agreement. In order to achieve this and to get to that stage however, the 4 areas below need to be addressed. These would be considered at the initial meeting either face to face or over the telephone.
The key considerations for us are:
- Client understanding of the risks of transferring
- Does the Cash Equivalent Transfer Value (CETV) look good value
- Income needs and objectives
- Sustainability of income and capacity for loss
On satisfying the above and on the basis that a transfer out looks positive, it will be a case of signing a formal agreement for Sancus Retirement Planning to act on the client’s behalf, with one of the next stages post agreement to gather additional scheme information from the Trustees, as the CETV is not sufficient to action the advice. It is for this reason that transfers can take up to the 3 months, which coincides with the expiry date on the CETV and so potential clients looking to move their scheme need to start the process as early as possible, as they run the risk of the advice process not being complete by the expiry date.
Transfers cannot take place until the advice process has been completed and so another CETV would need to be requested, which is not ideal as the CETV could be lower next time around.
Please contact info@sancusrp.co.uk for more information, help and guidance on our Final Salary Transfer Advice Service.