Should I transfer out an old employer pension ?
FIRSTTIMER
Posts: 637 Forumite
Hi,
I currently have an old defined benefit pension with a previous employer with a CETV value of approx. 60k. This pension I have built up increases by CPI and RPI up a max of 5% each year. Is it wise to leave it where it is or should I be investing it into some private scheme? I have a new pension with a new employer that doesn't allow transfers in...
Thanks,
I currently have an old defined benefit pension with a previous employer with a CETV value of approx. 60k. This pension I have built up increases by CPI and RPI up a max of 5% each year. Is it wise to leave it where it is or should I be investing it into some private scheme? I have a new pension with a new employer that doesn't allow transfers in...
Thanks,
0
Comments
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You!!!8217;ll need to get advice from a financial adviser/IFA.
It all depends on your circumstances as to whether it would be beneficial and whether the transfer is !!!8216;good value!!!8217;.
Giving up a guaranteed inflation proofed income in retirement is not to be done on a whim.
I think you will struggle though given the value because most IFAs will have a minimum floor with DB advice. Most likely £2k plus, with possibly £1k chargeable whether they advise it can go ahead or not. This quickly makes the transfer less valuable to you- and often a non-starter.0 -
I agree you are required to use an IFA but that will be expensive. Without understanding if you have unique circumstances I don't see the harm in leaving it alone and using it as the foundation of your other pension provision.0
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FIRSTTIMER wrote: »Hi,
I currently have an old defined benefit pension with a previous employer with a CETV value of approx. 60k. This pension I have built up increases by CPI and RPI up a max of 5% each year. Is it wise to leave it where it is or should I be investing it into some private scheme? I have a new pension with a new employer that doesn't allow transfers in...
Thanks,Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
FIRSTTIMER wrote: »Hi,
I currently have an old defined benefit pension with a previous employer with a CETV value of approx. 60k. This pension I have built up increases by CPI and RPI up a max of 5% each year. Is it wise to leave it where it is or should I be investing it into some private scheme? I have a new pension with a new employer that doesn't allow transfers in...
Thanks,
Without knowing what pension this buys no answer is possible !
We dont know if the pension will be £1 a year (if so, transfer out), £10k a year (if so, keep it) or something in between and if so, how much and at what ages. Or what age you are now and when you'd like to retire.0 -
Hi,
Thanks for this...its currently stands as this....
CETV Value - 60k
Age 31
Retirement at 55
£15k and pension of £3k per year or £5.5k per year. Its a defined benefit scheme increase maximum of cpi/rpi up to max of 5%.
I only requested a 55 retirement quote.0 -
FIRSTTIMER wrote: »Hi,
Thanks for this...its currently stands as this....
CETV Value - 60k
Age 31
Retirement at 55
£15k and pension of £3k per year or £5.5k per year. Its a defined benefit scheme increase maximum of cpi/rpi up to max of 5%.
I only requested a 55 retirement quote.
Please confirm what the Scheme Normal retirement age (NRA) is.The questions that get the best answers are the questions that give most detail....0 -
You could never sustain £5.5k a year from a lump sum of £60k (or alternatively £3k from £45k) let alone with up to 5% increases figured in.0
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For the average person that scheme looks like it should not be changed. You might struggle to find an IFA at any cost who would want the liability from being involved in transfering that scheme out unless you have very special circumstances.0
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