Possible pension transfer

atush

indexed this will be more than 200K to buy?

Graham001

I dont know if I worded it correctly, it should have read,

My pension statement dated 1/5/2015 states

"your current level of pension is£7601"

"Normal retirement date 20/01/2026"

kidmugsy

Graham001 wrote: »

I dont know if I worded it correctly, it should have read,

My pension statement dated 1/5/2015 states

"your current level of pension is£7601"

"Normal retirement date 20/01/2026"

That makes it worth less, but far from worthless. After all, your £760 p.a. will presumably be bigger in 2026 because of the inflation-protection. In fact, why not look at the T&Cs and tell us what sort of inflation-protection you've got at the moment?

Graham001

kidmugsy wrote: »

That makes it worth less, but far from worthless. After all, your £760 p.a. will presumably be bigger in 2026 because of the inflation-protection. In fact, why not look at the T&Cs and tell us what sort of inflation-protection you've got at the moment?

Sorry Kidsmugy if it was my typing but should have read £7601.00. I am sorry but i do not have a copy of the T&C's but i understand that if i request a copy from the company there is a charge (i believe it was about £20) which seems a bit staggering

atush

You could ask them the indexing info?

Anyway a basic valuation is 7601x 20 or 152020 so you'd look to be getting a value in excess of this?

kidmugsy

Graham001 wrote: »

Sorry Kidsmugy if it was my typing but should have read £7601.00.

No, no; the typo was mine.

Graham001

atush wrote: »

You could ask them the indexing info?

Anyway a basic valuation is 7601x 20 or 152020 so you'd look to be getting a value in excess of this?

Yes I think this is somewhere near the money , the transfer value is 151k does that sound correct?

Graham001

Ok heres my thoughts, Currently my "Main Pension" permits me to retire between 55-60 (in 2 years time)( which provides 50% spousal income in the event of death). My deferred pension does not become available until 65, (unless I suffer significant reduction, then I can draw a 25% tax free lump sum and the remainder to be crystalised into a pension) Which is not very flexible.
Given that I might have the option to an enhanced transfer value I could transfer it into a scheme that would permit me to still draw a tax free lump sum, but also put the remainder into draw down so it gives me better flexibility to model it around when i want or have to retire.

atush

Graham001 wrote: »

Yes I think this is somewhere near the money , the transfer value is 151k does that sound correct?

Close but remember that it would cost abt 200K to buy that same pension on the open market. So that would be a more fair value.

xylophone

Ok heres my thoughts, Currently my "Main Pension" permits me to retire between 55-60 (in 2 years time)( which provides 50% spousal income in the event of death). My deferred pension does not become available until 65, (unless I suffer significant reduction, then I can draw a 25% tax free lump sum and the remainder to be crystalised into a pension) Which is not very flexible.

Have you seen post 5 above?