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  • FIRST POST
    • ringer
    • By ringer 13th Mar 17, 9:18 PM
    • 98Posts
    • 19Thanks
    ringer
    Another DB transfer
    • #1
    • 13th Mar 17, 9:18 PM
    Another DB transfer 13th Mar 17 at 9:18 PM
    Hi,
    Just got a transfer value for a DB pension. £33,916 or £1900 pa at today's prices. I still have 15 years to normal retirement age.
    The pension is rpi linked with a min 2.5% once in payment.
    I realise it is just over the 30k threshold so would require FA consultation to transfer to my DC pension.
    My initial thoughts are for caution and to stick with a guaranteed benefit.
    What do you good people think?
Page 1
    • kidmugsy
    • By kidmugsy 13th Mar 17, 9:52 PM
    • 9,192 Posts
    • 6,015 Thanks
    kidmugsy
    • #2
    • 13th Mar 17, 9:52 PM
    • #2
    • 13th Mar 17, 9:52 PM
    Jeeze, that's a poor offer of a CETV.

    And you get RPI with a min of 2.5%. (Are you sure that's min not max?)

    I'd leave well alone.
    • ringer
    • By ringer 13th Mar 17, 10:04 PM
    • 98 Posts
    • 19 Thanks
    ringer
    • #3
    • 13th Mar 17, 10:04 PM
    • #3
    • 13th Mar 17, 10:04 PM
    Yes, increases by RPI (max 5%) now, then once in payment increases RPI (min2.5%, max 5%).
    I didn't think the offer was great, but is it really a poor offer?
    • bigadaj
    • By bigadaj 13th Mar 17, 10:20 PM
    • 8,762 Posts
    • 5,550 Thanks
    bigadaj
    • #4
    • 13th Mar 17, 10:20 PM
    • #4
    • 13th Mar 17, 10:20 PM
    Yes, increases by RPI (max 5%) now, then once in payment increases RPI (min2.5%, max 5%).
    I didn't think the offer was great, but is it really a poor offer?
    Originally posted by ringer
    It's poor by current standards, we hear of stories on here that would give double.
    • kidmugsy
    • By kidmugsy 13th Mar 17, 11:56 PM
    • 9,192 Posts
    • 6,015 Thanks
    kidmugsy
    • #5
    • 13th Mar 17, 11:56 PM
    • #5
    • 13th Mar 17, 11:56 PM
    Yes, increases by RPI (max 5%) now, then once in payment increases RPI (min2.5%, max 5%).
    I didn't think the offer was great, but is it really a poor offer?
    Originally posted by ringer
    If you offered an annuity on those terms for £33k customers would be beating on your door to buy it.
    • ajbell
    • By ajbell 14th Mar 17, 2:38 PM
    • 852 Posts
    • 2,759 Thanks
    ajbell
    • #6
    • 14th Mar 17, 2:38 PM
    • #6
    • 14th Mar 17, 2:38 PM
    Yes it's very poor by current standards.
    4kWp, South facing, 16 x phono solar panels, Solis inverter, Lincolnshire.
    • davieg11
    • By davieg11 14th Mar 17, 3:07 PM
    • 196 Posts
    • 83 Thanks
    davieg11
    • #7
    • 14th Mar 17, 3:07 PM
    • #7
    • 14th Mar 17, 3:07 PM
    I agree. Seems a very poor transfer value. 17.8 x the current value. My DB transfer from 26th January was 26.8 x the current value. Best to leave it for now. Get a new value every year and see if it improves.
    • sandsy
    • By sandsy 14th Mar 17, 3:55 PM
    • 1,064 Posts
    • 606 Thanks
    sandsy
    • #8
    • 14th Mar 17, 3:55 PM
    • #8
    • 14th Mar 17, 3:55 PM
    It seems appropriate given the period to retirement.

    It simply isn't possible to compare multiples as people seem so naively keen to do.
    • davieg11
    • By davieg11 14th Mar 17, 10:22 PM
    • 196 Posts
    • 83 Thanks
    davieg11
    • #9
    • 14th Mar 17, 10:22 PM
    • #9
    • 14th Mar 17, 10:22 PM
    It seems appropriate given the period to retirement.

    It simply isn't possible to compare multiples as people seem so naively keen to do.
    Originally posted by sandsy
    I'm 24 years to normal retirement and mine was as I said 26.8 x the current value and I need a yield of 6.2%. The op is only 15 years from retirement.
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