Possible pension transfer

sandsy

Remember that schemes offer this because they are looking to reduce their future costs. The starting point for anyone considering a transfer out should always be if it's good for them, how can it be good for me?


Other things to think about are:
- how comfortable are you about managing your own investments or paying an adviser to do it for you?
- what proportion of your overall retirement provision does the transfer offer relate to? If it's a significant proportion, then it's less likely to be a good idea to transfer.
- for you personally, how happy are you with the trade-off between having more control over how and when you take the benefits compared to the risks of having a lower amount in retirement than if you stayed in the scheme, if the investments perform poorly?


In circumstances like these, the employer will often pay for members to take advice from an adviser which is worth doing. But there are often other biases in that process which mean you need to be cautious.

Graham001

xylophone wrote: »

Have you seen post 5 above?

sorry xylophone i dont quite see your point there perhaps you could clarify it

Graham001

sandsy wrote: »

Remember that schemes offer this because they are looking to reduce their future costs. The starting point for anyone considering a transfer out should always be if it's good for them, how can it be good for me?


Other things to think about are:
- how comfortable are you about managing your own investments or paying an adviser to do it for you?
- what proportion of your overall retirement provision does the transfer offer relate to? If it's a significant proportion, then it's less likely to be a good idea to transfer.
- for you personally, how happy are you with the trade-off between having more control over how and when you take the benefits compared to the risks of having a lower amount in retirement than if you stayed in the scheme, if the investments perform poorly?


In circumstances like these, the employer will often pay for members to take advice from an adviser which is worth doing. But there are often other biases in that process which mean you need to be cautious.

What you say makes a lot of sense, but it is circumstances that have created this situation. I do not intend to do anything rash, but i am using this situation to explore what are the better choices for me. Ultimately it would "financially" be best to await until 65 for it to mature (unless the company folds, in which case i would only recieve about 90%) but that it may be more suited to sacrifice a small ammount in order to have more flexibility.

xylophone

i dont quite see your point there perhaps you could clarify it

Apologies, I meant post 8- I was suggesting seeing an IFA to discuss any pension transfer.

Normally, it is not considered a good idea to transfer out of a deferred DB scheme and people are advised not to yield to the blandishments of companies offering "enhancements" aka bribes.

However, in your circumstances, where you are still in a DB scheme with your current employer, will have a state pension in due course ( see https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf and https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf ) and would like the flexibility of retiring at 55, an IFA might be prepared to sign off a transfer - see post 8.

Graham001

xylophone wrote: »

Apologies, I meant post 8- I was suggesting seeing an IFA to discuss any pension transfer.

Normally, it is not considered a good idea to transfer out of a deferred DB scheme and people are advised not to yield to the blandishments of companies offering "enhancements" aka bribes.

However, in your circumstances, where you are still in a DB scheme with your current employer, will have a state pension in due course ( see https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf and https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf ) and would like the flexibility of retiring at 55, an IFA might be prepared to sign off a transfer - see post 8.

Thanks makes perfect sense and thankyou for the useful links. I believe the company is providing a free IFA nearer the time. But I just wanted to get a bit ahead of the game, and thanks to you all your comments and advice, it has been very helpful.
Kind Regards Graham

dunstonh

I believe the company is providing a free IFA nearer the time.

Although the free initial consultation will not include an occupation transfer out.

TinyTom

Sorry to hijack the thread but can anyone advise me where I might find a fairly basic method of calculating a Transfer Value for my pension, I am 55 years old

Thanks

dunstonh

TinyTom wrote: »

Sorry to hijack the thread but can anyone advise me where I might find a fairly basic method of calculating a Transfer Value for my pension, I am 55 years old

Thanks

Ask the scheme. There is no other way to guess.

TinyTom

Hi dunstonh,

Thanks for your reply

I already did but didn't really want to wait 12 weeks for answer or paying £400 to halve the time

I was just hoping someone might be able to provide a rough guide

dunstonh

TinyTom wrote: »

Hi dunstonh,

Thanks for your reply

I already did but didn't really want to wait 12 weeks for answer or paying £400 to halve the time

I was just hoping someone might be able to provide a rough guide

Too many variables that make it impossible to even throw a guess at.