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    • Wolf52
    • By Wolf52 28th Nov 17, 8:41 PM
    • 2Posts
    • 0Thanks
    Wolf52
    Final Salary Scheme
    • #1
    • 28th Nov 17, 8:41 PM
    Final Salary Scheme 28th Nov 17 at 8:41 PM
    Hello, I have a DB pension which has been deferred. I am waiting to receive a CETV for this as well forecasts of what it would be worth as a pension if taken at ages 55 and 60 with and without lump sums. I'm thinking that I would like to transfer my DB pension so that I can use the lump sum to pay off the mortgage and draw down thereafter if required.

    As a back-up, I also will have full State Pension and (if I stay working for the next 20 years), 26 years worth of NHS pension (the 2008 and 2015 Schemes).

    My husband is a brain tumour survivor with a limited life expectancy and I would like to be able to leave some of the DB pension to our only child (currently a teenager) which of course I would be unable to do under that scheme. My own health isn't great, I have autoimmune diseases, but nothing that will limit life expectancy. My husband will have a state pension, but unlikely to be a full one. He also has two small personal pensions that aren't worth very much as he is unable to pay into them.

    Do you think this would be a sensible course of action from me - I've just turned 49.

    thanks
Page 1
    • p00hsticks
    • By p00hsticks 28th Nov 17, 10:39 PM
    • 5,774 Posts
    • 5,549 Thanks
    p00hsticks
    • #2
    • 28th Nov 17, 10:39 PM
    • #2
    • 28th Nov 17, 10:39 PM
    Do you think this would be a sensible course of action from me - I've just turned 49.
    Originally posted by Wolf52
    Without knowing the figures, and how comfortable you would be handling your investment risk if you moved to a DC pension, my opinion is that it's not possible to say - I suggest you post back when you have the figures you have asked for.
    • Wolf52
    • By Wolf52 29th Nov 17, 5:38 AM
    • 2 Posts
    • 0 Thanks
    Wolf52
    • #3
    • 29th Nov 17, 5:38 AM
    • #3
    • 29th Nov 17, 5:38 AM
    Okay thanks I will.
    • bostonerimus
    • By bostonerimus 29th Nov 17, 1:07 PM
    • 1,211 Posts
    • 668 Thanks
    bostonerimus
    • #4
    • 29th Nov 17, 1:07 PM
    • #4
    • 29th Nov 17, 1:07 PM
    With interest rates so low I'm not sure that using the lump sum to pay down the mortgage is the best idea.

    When you get the numbers let us know. The CETV can be very tempting and look like a better deal than the final salary pension, but once all the costs and risks of investing the CETV are assessed it often isn't such a clear cut decision. However, wanting to leave an inheritance and health issues are factors in favor of taking the CETV.
    Misanthrope in search of similar for mutual loathing
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