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DB Transfer
justtickingover
Posts: 2 Newbie
I am currently drawing on a DB pension so no problems with that. I have not long ago found out I also have another DB pension from an employer I left over 30 years ago. Completely forgot I paid into their pension.
The value of this pot is only almost £40k so in pension terms it isn't worth bothering about.
Can anyone tell me any companies who would provide me with the option to transfer this DB pot into a DC scheme and then allow me to cash in the value?
The value of this pot is only almost £40k so in pension terms it isn't worth bothering about.
Can anyone tell me any companies who would provide me with the option to transfer this DB pot into a DC scheme and then allow me to cash in the value?
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Comments
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justtickingover wrote: »The value of this pot is only almost £40k so in pension terms it isn't worth bothering about.
Once again I am impressed by how rich people are around here.Free the dunston one next time too.0 -
Yes and very often so are they, but the ones I get fed up reading about are the ones who have discovered it and then claim that they have always been responsible savers and micro-managed their comfortable retirements so why couldn't everyone else, when the reality is most of them have just tripped over their massively inflated DB pots at some stage, probably prompted by a scheme freeze or wind up. Otherwise they'd probably be no more clued in than the OP was with this bothersome little pleasant surprise!Once again I am impressed by how rich people are around here.
It is quite likely that upon leaving it 30 years ago, a DB scheme now worth £40K as a CETV, might only have been worth a couple of grand then! And there weren't too many reasonable alternative options then as to what to do with it other than to leave it and forget it until he or she got old and grey! So you can't blame the OP for doing just that
The answer to the OP's question is probably someone like Hargreaves Lansdown might be able to still help the OP set up a SIPP with it after taking their advice, but the pension transfer advice fee might be a bit steep proportionately speaking.
I am sure others much more clued in than I might have a myriad of suggestions before the day is out though!
I thought kidmugsy might be one such, actually :rotfl:0 -
justtickingover wrote: »Can anyone tell me any companies who would provide me with the option to transfer this DB pot into a DC scheme and then allow me to cash in the value?
From 6th April such a transfer will need to be signed off by an IFA (or whole of market adviser), with permissions to advise on Pension Transfers.
As you won't be able to do it direct, it is probably best to get in touch with an adviser directly -https://www.unbiased.co.uk/ is a directory of financial advisers.
At that size it will be important to shop around on cost, as the base costs of advising in this area are high, and some advisers may be reluctant to get involved and either quote a relatively high charge or refuse to deal with at all.I work for a financial services intermediary specialising in the at-retirement market. I am not a financial adviser, and any comments represent my opinion only and should not be construed as advice or a recommendation0 -
Standard life are allowing it up to 6/4/15 without IFA sign off but you'd need to be very quick to get it in before then.0
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justtickingover wrote: »I am currently drawing on a DB pension so no problems with that. I have not long ago found out I also have another DB pension from an employer I left over 30 years ago. Completely forgot I paid into their pension.
The value of this pot is only almost £40k so in pension terms it isn't worth bothering about.
Can anyone tell me any companies who would provide me with the option to transfer this DB pot into a DC scheme and then allow me to cash in the value?
A DB pension does not have a 'pot'. Do you mean you've received a CETV estimate of £40k?
How much is the monthly payment if you just take it as the DB pension?The questions that get the best answers are the questions that give most detail....0 -
I think he means a pension of £2k lol (£2k X 20 = £40k "pot") but we'll see.0
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CETV of £40k0
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So how much er year? 2K? Less? More?
Spouse? Good health or not?0 -
You are splitting hairs - this is 2015, remember! CETV = pot once it is in transit, and it would be a mistake not to consider that it = pot all the time it remains on the original shelf. In 2015, there's a danger it isn't going to get much further watering or fertilizer unless the trustees and old employer are still up for the original promise with the original integrity in interpreting it, and are not swayed by actuaries offering reduced valuations in exchange for high fees.A DB pension does not have a 'pot'. Do you mean you've received a CETV estimate of £40k?
More common now are the regulator's inexplicably indifferent views of what constantly passes as acceptable i.e. 1/3rd deficits in schemes when measured properly on a full-buy-out basis (because regulators prefer to let the trustees and employers off with all scheme liabilities published as s179 figures which are no more than 90% of what the liabilities really are). Now FCA (who I think take over DB scheme regulation very shortly) have entered the fray and they are even inviting further insidiously reduced CETVs for those 'daft enough' to want to consider the transfer option again in the future
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