Transfer final salary pension to private pension

atush

The question was not stupid, no one said it was.

But I remain convinced that the facts support my opinion that to transfer a FS pension to a private one is almost always (unless you fall under the categories mentioned above if you actually read anything apart from the word stupid).

You may not like the word stupid, so as I say, feel free to replace it with UNWISE in the EXTREME?

I feel the word stupid is a good word, it can bring you up sharp, and make you re look over things and not make such a Horrendous mistake?

Sometimes, being politically correct is disingenuous.

I am very happy now that the regulators are taking this out of people's hands (who with greed running strong may be swayed to the dark (stupid) side of the force). So you need an IFA for this now, who won't sign off, unless it is in your interest (ie not stupid).


Thank goodness the regulators have found a way to stop stupid in its tracks.

Andy_L

milesmalpractice wrote: »

She only receives a very small National Health Pension despite working as a Nurse and Health visitor for almost 40 years , as she was on a final salary scheme and worked part time for her final few years.

How small? even allowing for " worked part time for her final few years." that should be in the region of £10k+ & a 3x lump sum

dunstonh

But I remain convinced that the facts support my opinion that to transfer a FS pension to a private one is almost always (unless you fall under the categories mentioned above if you actually read anything apart from the word stupid).

I would agree with you. 99% it is best leaving it where it is. This is why the FCA treat defined benefit transfers as mis-sales unless proven otherwise. It is also why they extend that to non-advised transactions to stop people being stupid with their pension.

Daniel54

Consistent with the comments so far,my IFA hesitated to suggest the option of converting one of my DB pensions into the cash alternative,but finally persuaded himself it is worth looking at.He is running the numbers for me to consider and as an option this will also require some carefully thought through and integrated tax and estate planning.I will have a clearer view when we next meet.
My situation is not typical ( although no health issues luckily) and my default position is to take the DB scheme unless the alternative is transparently better and carries no greater risk.

atush

I can't see how it won't (carry extra risk).

But do let us know if he comes up with anything (legal).

Daniel54

Thanks,we are agreed I would not wish to do anything which was not fully compliant with HMRC or exploited loopholes that could in the future be closed.

It should be an interesting exercise,which revolves around the comparative benefits of taking pension normally as higher rate taxable income or alternatively taking slices of capital as income instead.Also depends on interaction with other capital and investments

Interestingly,he feels I can /should de-risk my overall position,which I had thought was not an option.

Happy to revert on this once matters have progressed further and I have a fuller understanding of the options