Pension Transfer Value

MrsJardinera

I was only in my last job for 14 months and got my pension transfer value (for transferring to my new employer's scheme). The transfer value is £1440.21. Further down on the form, it says:
"Amount of pension that the above transfer value would buy: £212.01 p/a"
Does this mean that it equates to £212.01 per annum once I reach pension age? I don't know a lot about pensions so I'm hoping someone can advise! Thanks.

Tiglath

Yes I think so - I have £3200 in one small pension pot that I paid into for a few months in 2010, and my latest statement projects £113/p.a. I'm thinking of transferring it into my current employer scheme as well.

[Deleted User]

I believe that projection assumes reasonable growth, £1440 would not give you £200 per year, but £1400 invested for the next 20 years might. How old are you and what type of pension is it?

MrsJardinera

I'm 29. If I leave it in the old scheme, I apparently get about £700 p/a by the time I reach retirement age so it looks like I'd be better leaving it where it is. The new scheme is the civil service nuvos scheme.

hyubh

MrsJardinera wrote: »

The new scheme is the civil service nuvos scheme.

What is the old scheme exactly? The new one is career average DB where the risk lies with the employer (the government in your case). Moreover, what you're actually buying with a transfer in to Nuvos will depend on what you're transferring from.

marlot

If you were only in your old job for 14 months you may not be able to leave it where it is. I would check very carefully.

Your options are probably (a) to transfer it to the new scheme, or (b) just get a refund of your contributions. Option (b) is just YOUR contributions, not your employers'.

Option (a) is probably worth more, but you normally have a defined window to do it in. If you don't transfer (or fail to do it in time), most pension schemes (IME) will do option (b).

mania112

It should say COULD buy. There is no way of knowing now what will happen in the future, so assumptions are made.

MrsJardinera

It was the Independent Schools Pension Scheme I was in before. I have checked and I can leave it where it is, which equates to about £700 p/a by the time I reach retirement age

hyubh

MrsJardinera wrote: »

It was the Independent Schools Pension Scheme I was in before.

DB or DC? Because quickly Googling suggests it could be either:

http://www.thepensionstrust.org.uk/TPT/website/DocumentLibrary/Scheme/The+Independent+Schools+Pension+Scheme/The+Independent+Schools+Pension+Scheme.htm

http://www.ispsdc.org.uk/

I have checked and I can leave it where it is, which equates to about £700 p/a by the time I reach retirement age

How literally one should take 'equates to' depends on the answer to the DB or DC question. Further, if DB, a transfer to Nuvos may be under Club terms in which you are buying a final salary pension credit rather than a fixed amount of pension index linked to CPI.