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Pension Buyout
JCB20
Posts: 24 Forumite
My employer closed their Final Salary scheme a couple of years ago.
They replaced this with a Defined Contribution Salary Sacrifice group scheme run by Standard Life.
We have now all had a letter indicating that they will be offering us an incentive to move our deferred pension benefits to another "pension arrangement". The going rate seems to be an additional 6% increase on the Normal Transfer Value.
Given the current state of annuity returns I wonder if the incentive is worth thinking about or would I be better to wait and take the FS pension.
They replaced this with a Defined Contribution Salary Sacrifice group scheme run by Standard Life.
We have now all had a letter indicating that they will be offering us an incentive to move our deferred pension benefits to another "pension arrangement". The going rate seems to be an additional 6% increase on the Normal Transfer Value.
Given the current state of annuity returns I wonder if the incentive is worth thinking about or would I be better to wait and take the FS pension.
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Comments
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Personally I wouldn't move it for a paltry 6%. It is worth Far more.0
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I, too, would stick with the FS. At least you'll know how much you're going to get. If it's anything like mine the preserved pension has done better than the pension from my final job as the preserved pension was getting RPI increases year on year whereas the salary certainly didn't increase year on year in line with RPI particularly in the last few years, since the recession.
Denise0 -
http://www.barnett-waddingham.co.uk/news/2005/12/revaluation-for-early-leavers/
Why do you think they are offering you an incentive to leave? Call me cynical but I doubt it is out of the goodness of their hearts.....
http://www.pensionsadvisoryservice.org.uk/workplace-pension-schemes/final-salary-schemes/transfer-incentives0
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