Is this good advice?

Cyril

I was sent an option like this from my previous employer who my main FS pensions benefits are with and I decline the offer.

I am quite cynical and assumed the employer was only offering this as a benefit to them not me and I was happy with the existing arrangements. I may forsake a bit extra pension if the new scheme did well but for peace of mind I was happy to stick where I was.

I'd get proper advice so you have the information necessary to make an informed choice.

atush

Even with an enhanced annuity, I can't see you getting that same index linked pension after the mark up. I'd stay put.

niro_111

hi
its hard to know what to do, i have the same pension, and jlt have told me to leave it where it is,

joedenise

I'd definitely stay with a Final Salary scheme. At least you know what you're likely to get, unlike an annuity as that depends on the market at the time you actually buy the annuity.

Denise

zygurat789

fiesta04 wrote: »

Yes I am looking at all possibilities. Some facts are...

1-Mum died at 64
2-Brother died at 55
3-Mums siblings died 58,61,64 and 72.
4-Fathers side unknown
5-I am in reasonable health, although I do have Diabetes Type2
6-Few other ailments caused by alcohol abuse
7-Do not smoke
8-Although single now and no plans to remarry who knows
9-I am adverse to risk

Time to think it all through.

Of course I would welcome more input.

You have a serious illness, are you taking all the proper steps to control it? Obviously not unless you have completely given up alcohol.
One indication of longevity is family history, you only have one side but, here, only one exceeded the male sp age.
You would probably be entitled to an uplift on any annuity for ill-health.

atush

I agree, but still think that 100K wouldn't beat the FS pension even with enhanced terms.

The thing is, can he take the FS early? Due to ill health? type 2 plus alcohol abuse means decreaded LE but we don't know how bad.

fiesta04

I really hope I live longer than family members have, but I do not expect to reach 75.
Therefore I need to balance up figures for


1-Take highest lump sum at 55 and any pension allowed.
2-Take highest lump sum at 55 and not draw on pension until later.
3-Leave it until 65

I am now sober for over 2 years and medically ok.
I have always worked so have never claimed.

So to number crunching and luck!!!

sandsy

Let them go through the advice process with you. Get the results of the comparison then come and tell us what they said, and we'll give you our views.

fiesta04

UPDATE...

Have decided to stay with Dairy Crest Pension.

Thanks for all your comments.

LikesWhisky

I am in the same position.
Age 55, enhanced transfer value £95K
Married
Scheme retirement age 65
Have been advised by Dairy Crest appointed advisors to transfer if retiring at 65 but to stay in scheme if wanting to retire at 60.

But what worries me is that Dairy Crest Pension Trustees are no longer increasing deferred pensions for inflation as before. It is being reduced on elements of an individual's pension pot depending on dates of employment. In my case not much will qualify for any increase, and it will be CPI not RPI as it was before. This is to reduce their future liabilities. So leaving the money in the Fund might not be as good in the future, and it could be better to have a personal pension with the enhanced transfer value that's on offer to the end of this month.

In addition, Steve Webb the Government pensions minister is making signs currently that they are going to allow reforms that involve scrapping inflation protection for final salary schemes. Would it not be better to be in charge of your own destiny and have a private scheme?

Perhaps a private scheme would have trouble keeping up with inflation but at least you or your advisor would be in control, and not the meddling Government.

I have to make a decision by the end of this month. BTW the IFA advisors, called JLT are paid for by Dairy Crest but completely independent I'm told.

I understood it was almost always best to stay is a final salary scheme, especially if 10 years or less to retirement. But JLT say otherwise.

Any thoughts?