Green Grass

Hi all

I went to an emigration expo at the weekend in Edinburgh and discussed my need for pensions advice with Montfort and before I engage with them, I wonder if anyone has recent experience of them.

I had a recommendation on the forum a while ago to use International Pensions Transfers in Perth but my experience of them has so far been poor. They were meant to provide me with a free report detailing my options and making recommendations in relation to my 4 UK pension schemes (they get paid should I transfer my funds). However, having sourced some information on one of my schemes, they sent me my fund discharge documents and wanted me to speak with their advisors in Australia regarding which fund to put my money into. Basically no advise at all and only cared about me transferring my pension and them earning commission.

So I'm considering dumping them and using Montfort instead who will charge a £1k fee up front for their report which I can offset against the transfer fees should I decide to move any of my funds with them. They appear to be more independent in terms of the advice they will give compared with people like IPT or Pension Transfer UK but I wondered if anyone had any experience of them.

Sorry for long post...but hey it's about pensions!

Thanks

Pollyana

All I can say is that this particular company have had bad press on here in the past. Try doing a search on them.

Snap Shot

Green Grass - have PM'd you

Green Grass

I've noted that quite a lot of the negativity on Montfort relates to cases from many years ago and appears on many expat forums. Especially over aggressive selling and giving advice on matters that most people should be able to find out online.

But I've not seen any negative comments relating to their advice on pension matters and this is a real issue to me. I need a professional to write a report advising me whether, in my specific circumstances (transfer values, age to retirement etc) I should move my 3 defined benefit pension schemes and 1 defined contribution scheme either straight to on onshore QROPS, out of the UK into an offshore QROPS or to leave them in the UK. Surely given this is such a massive issue to many people who have had long UK careers in final salary pension schemes, that there is an advisor out there somewhere who is respected in the online expat community....anyone?

NedKelly

There are so many variables that I cannot see how anyone could give you a definitive answer. You would have to take into account exchange rate fluctuations, tax on pensions, projected fund growth rates, inflation prospects for both UK & Australia, benefits to spouse, etc. I suppose it could be done but how reliable would it be?

Amazulu

Contact Alan Collett. Do a search on here to find out more about him.

Cheetah7

We had experience with Montfort, and not a good one and someone I know lost thousands with them.

Kiwipaul

You've got to realize these so called experts don't have a crystal ball and they generally have their own agenda (if based in Oz they will recommend transferring). Also your situation now might be totally different in 5 years and so you will need to do more changes and more costs.

My opinion would be to leave it in the UK until you retire and then decide (thats what I've done) and I've incurred no costs. Now is a lousy time to transfer (exchange rates) and the UK stock market is doing better than the Oz one so could be better waiting for the exchange rate to improve.

Only person I would recommend would be Alan Collett as he has given freely advise on this forum but I've never had cause to use him

Green Grass

Thanks to all who have posted.

While I've absolutely no doubt based on posts on this forum that Alan Collett has been extremely helpful to many people on here, his business partner in relation to pension transfers is International Pension Transfers who will write a free report on an individuals UK pension situation and consider benefits of a transfer to Australia.....but then receive considerable commission when pensions are transferred to Australia. How can that be an truly independent report if you only get paid by recommending a pension transfer?

Green Grass

Thanks. Agreed, they don't have a crystal ball and I agree they have an agenda for you to transfer which is how they get paid. There are options for transferring into an offshore QROPS and then moving funds to Australia when (if!) the exchange rate improves. I believe this avoids the 15% tax charge on your UK/Aus transfer, which is applied to the increase in transfer values between the date of your arrival and the date you make the transfer (which comes into effect 6 months post Australian residency).

Final salary schemes give me a guaranteed payout and do not expose me to the volatilty of markets (except exchange rate)....but if I leave them in the UK, I pay tax on benefits once paid and have very limited ability to pass my fund on death to my spouse or children.

Alan Collett

Are you sure about that ...?

Best regards.

Green Grass

3% of my pension funds should I transfer is a considerable sum of money. If I don't transfer, they receive zero. I'm just not convinced how I could receive truly independent advice. Happy to be persuaded Alan. So far I've received a few details on one of my funds (most of which I already knew), no report giving advice...but I have been sent the discharge documentation for that fund! I've since insisted on a report on that fund and hope to receive it soon.

Thanks

Alan Collett

The drivers for a transfer are generally tax related - as you have noted - and a desire to mitigate exchange rate risk and variable income in respect of the pension.

So far as I recall - and I can check this - IPT's fees for advice are a function of amounts that might be transferred, but are also capped.

Also, there is no obligation on you to transfer. Correct me if I'm wrong, but you aren't committed to a transfer using IPT.

Finally, I acknowledge that there might be an impression of a lack of independence and a conflict of interest in the advice process if the advisor's remuneration is a function of whether or not you transfer. I would only say that in my view (and I may be old fashioned) independence and integrity as a professional advisor is first and foremost an attitude of mind. Just because an advisor is remunerated on the basis of an outcome doesn't necessarily mean the advisor's advice is incorrect - suggesting the advisor is unable to reach a properly considered independent opinion for you is not likely to be well received by those whose integrity is being questioned.

Best regards.

Alan Collett

PS. I am happy to take your concerns to IPT if you are happy to liaise with me off forum.

Alan Collett

OK - I have spoken with IPT.

I am very comfortable with what they are doing, and as I have said you are welcome to contact me off forum if you would like your concerns to be addressed.

Best regards.