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Pension Terminology Question
jintyb
Posts: 1,763 Forumite
What is the difference between a transfer value and a pension pot? My employer has roled out a new website where you can see the potential pension you would get. It allows you to enter details of any pensions from previous jobs to give an overall picture but the terminology stumps me! Thanks in advance.
you will always be rich enough to be generous.
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Comments
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Pension pot (aka fund value) means the value of your investments.
Transfer value is the value you would get if you were to transfer it. If there are exit penalties in place the transfer value would be lower. If there were final bonuses in play (in the case of a With Profits fund) the transfer value could be higher than the fund value.0 -
What is the difference between a transfer value and a pension pot?
Also, for final salary pensions there is no "pot" because what is defined is the benefits you'll eventually get, not the capital required to pay for them. There is a transfer value, though, being the money that would be moved over if you transferred to, say, a personal pension.Free the dunston one next time too.0 -
What is the difference between a transfer value and a pension pot?
transfer value is an official term that indicates the transfer value (if moved to another pension). Pension pot is a made up term generally used to indicate your whole retirement planning and nothing specific.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks for your replies and explanations. After a wee bit of research I've found out that one of my pensions is a GPP and has a TV of £20k and the other is a final salary scheme Deferred benefits with a TV of @£23k. A few years ago a IFA advised me to leave the latter where is was and not transfer it.
Of course this was all discussed when I was much younger and didn't give a toss about pensions. Now I'm nearly 55 and its a different story!
you will always be rich enough to be generous.0 -
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Thanks for your replies and explanations. After a wee bit of research I've found out that one of my pensions is a GPP and has a TV of £20k and the other is a final salary scheme Deferred benefits with a TV of @£23k. A few years ago a IFA advised me to leave the latter where is was and not transfer it.
Of course this was all discussed when I was much younger and didn't give a toss about pensions. Now I'm nearly 55 and its a different story!
good advice; almost always best to keep the DB (final salary) pension.The questions that get the best answers are the questions that give most detail....0
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