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to transfer or not transfer that is the question
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- Site Admin
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to transfer or not transfer that is the question
I have an old pension thats only worth 2k a year as a pension - and its one of those old school safe investment things which makes it quiet secure.
However they give it a value of £250k which sounds to me a better bet to transfer to a private pension and then drawdown as much as possible and live of the 'winnings'
even paying the tax at getting more.
My idea that it is an amount I could live on for years or invest for prfit to live on for longer
or take 25% to live on for year or 2 and leave the rest in that pot
I think the swinger is the saftey net and the fact it gives a spouse pension as well - which my current private pot would not.
I know I need to talk to a FA but I thought I might canvas some other opinions than just the one.
However they give it a value of £250k which sounds to me a better bet to transfer to a private pension and then drawdown as much as possible and live of the 'winnings'
even paying the tax at getting more.
My idea that it is an amount I could live on for years or invest for prfit to live on for longer
or take 25% to live on for year or 2 and leave the rest in that pot
I think the swinger is the saftey net and the fact it gives a spouse pension as well - which my current private pot would not.
I know I need to talk to a FA but I thought I might canvas some other opinions than just the one.
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- Lemon Half
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Re: to transfer or not transfer that is the question
stooz wrote:I have an old pension thats only worth 2k a year as a pension...
However they give it a value of £250k which sounds...
Astounding -- or a mistake. Before you do anything else I'd suggest asking them to double check and confirm, or otherwise, those figures!
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- The full Lemon
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Re: to transfer or not transfer that is the question
stooz wrote:I have an old pension thats only worth 2k a year as a pension - and its one of those old school safe investment things which makes it quiet secure.
However they give it a value of £250k which sounds to me a better bet to transfer to a private pension and then drawdown as much as possible and live of the 'winnings'
even paying the tax at getting more.
My idea that it is an amount I could live on for years or invest for prfit to live on for longer
or take 25% to live on for year or 2 and leave the rest in that pot
I think the swinger is the saftey net and the fact it gives a spouse pension as well - which my current private pot would not.
I know I need to talk to a FA but I thought I might canvas some other opinions than just the one.
It makes no sense. A 2k pension needs a far smaller pot, so it's out by a factor of ?5?
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- Lemon Quarter
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Re: to transfer or not transfer that is the question
It must have that value for a reason, is it index linked?
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- Lemon Half
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Re: to transfer or not transfer that is the question
Lanark wrote:It must have that value for a reason, is it index linked?
Most DB pensions are, but anything over a 30x multiple is starting to be generous.
Scott.
Re: to transfer or not transfer that is the question
You could safely get £7000 pa from a stocks and shares portfolio of £250000 and keep the capital intact(in fact it will probably grow)
Is that enough to compensate for “safety “ and a wife’s pension?
Probably-if you have some knowledge of investing
You have to then manage the investment/pension yourself -are you knowledgeable enough to do this?
It then passes to your wife or your heirs on your death
xxd09
Is that enough to compensate for “safety “ and a wife’s pension?
Probably-if you have some knowledge of investing
You have to then manage the investment/pension yourself -are you knowledgeable enough to do this?
It then passes to your wife or your heirs on your death
xxd09
Re: to transfer or not transfer that is the question
Currently a primer on the whole pension transfer process posted on Monevator.com
Well worth a read for an investor in your position
Gives chapter and verse
xxd09
Well worth a read for an investor in your position
Gives chapter and verse
xxd09
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Re: to transfer or not transfer that is the question
Ok. I've checked. Sorry. It's a value of £174k to a pension of £2865.00 a year
It's adb. But like you suggest I will never get my 174k back in my life time, so having it in my own bank/investment is my preference
It's adb. But like you suggest I will never get my 174k back in my life time, so having it in my own bank/investment is my preference
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- Lemon Half
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Re: to transfer or not transfer that is the question
stooz wrote: It's a value of £174k to a pension of £2865.00 a year
That's still an eye watering multiplier. You may still want to check what they mean by £ 2865 a year. Defined Benefit income amounts are usually revalued with inflation from when you left the scheme to when you eventually retire. Depending on when they measure the £ 2865, it might be quite a bit more when you reach retirement age.
Re: to transfer or not transfer that is the question
yes its a multiplier of 61 times , seems high. I have the same issue my multiplier is 40 to 50x. Good luck with the FA though they they will want £5,220/3% to sign off the transfer and you can't transfer without their sign off.
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- Lemon Slice
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Re: to transfer or not transfer that is the question
A colleague has a similar dilemma, £4.5k pa at 60 or £189k transfer value now. He would like to transfer!
Can anybody recommend an IFA who would do the necessary and advise the costs involved........?
Can anybody recommend an IFA who would do the necessary and advise the costs involved........?
Re: to transfer or not transfer that is the question
YeeWo wrote:A colleague has a similar dilemma, £4.5k pa at 60 or £189k transfer value now. He would like to transfer!
Can anybody recommend an IFA who would do the necessary and advise the costs involved........?
I transferred a small DB pension a year or so ago. I used a company called "First Equitable"
https://www.first-equitable.co.uk/final ... er-advice/
I found them a professional outfit to deal with. The whole process was relatively painless.
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