stakeholder pension

kidmugsy

worried_jim wrote: »

I am being offerd an additional £11,948 if I transfer to another provider (which I am doing).

Why? What are you giving up that is worth more than £11,948 to L&G?

P.S The death benefits look pretty stingy by modern standards. Or am I out of touch on this?

worried_jim

kidmugsy wrote: »

Why? What are you giving up that is worth more than £11,948 to L&G?

P.S The death benefits look pretty stingy by modern standards. Or am I out of touch on this?

Old employer wants to wind the scheme up. Was offered £1,200 3 years ago but said no. Worth hanging out for.

Your_Hero

worried_jim wrote: »

So in the 90's I paid in myself £2784.15 (starting salary in 1991 £8.5k). Fund value is £31,614. I am being offerd an additional £11,948 if I transfer to another provider (which I am doing). Which will give a total fund value of £43,562.

This is a DB scheme. You can't compare this with the OP's stakeholder plan as it is a completely different ball game.

Your contributions of approx £3,000 did not "grow" to £43k. It's just that your scheme is a good one and the cost of providing the equivalents benefits are high (hence a transfer value of £31k prior to enhancement).

Also to note is that enhanced transfer values are usually offered so that the trustees of the scheme can offload liabilities of DB pensions (possibly to reduce the deficit of the scheme). Whether or not this is beneficial for you and your personal circumstances, would need a full TVAS report to identify and advice from an IFA.

worried_jim

Your_Hero wrote: »

This is a DB scheme. You can't compare this with the OP's stakeholder plan as it is a completely different ball game.

Your contributions of approx £3,000 did not "grow" to £43k. It's just that your scheme is a good one and the cost of providing the equivalents benefits are high (hence a transfer value of £31k prior to enhancement).

Also to note is that enhanced transfer values are usually offered so that the trustees of the scheme can offload liabilities of DB pensions (possibly to reduce the deficit of the scheme). Whether or not this is beneficial for you and your personal circumstances, would need a full TVAS report to identify and advice from an IFA.

Absolutely. The point I am making is that it's good to invest in pensions.
The screenshot is from the TVAS via my IFA.

Russe11

worried_jim wrote: »

Absolutely. The point I am making is that it's good to invest in pensions.
The screenshot is from the TVAS via my IFA.

You mean it was good for some, those that contributed to DB scheme.

I would be surprised if the value of transfer is what its worth in the scheme.

Paying 3k into a stakeholder is unlikely to produce a fund of that value over the next 20years.

worried_jim

Russe11 wrote: »

You mean it was good for some, those that contributed to DB scheme.

I would be surprised if the value of transfer is what its worth in the scheme.

Paying 3k into a stakeholder is unlikely to produce a fund of that value over the next 20years.

Leaving it in there would definitely be better than taking it out, who knows what the next twenty years will bring them (except their 76th birthday).

Russe11

So why are you transferring it out?

worried_jim

Russe11 wrote: »

So why are you transferring it out?

I am transferring it to another pension scheme and being paid £11,948 to do so.

hostertlady

xylophone wrote: »

Advised by? In what circumstances?

What other pension provision do you have?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301563/Pensions_fact_sheet_v8.pdf

Re state pension https://www.gov.uk/new-state-pension/overview

hello, I was worried that I had no other provisions other than my state pension, I am a housewife and have basically not paid into any company pension pots... I didn't work when the kids were little, well I did, but just little part time jobs....
so I saw a FA and at the time they were talking about stakeholder pensions, where I pay so much ( because of the late start I pay £102 a month since 2002...).
my hubby has a good company pension....( I don't know why I have thrown that in!)...
I know that because of my DOB I cant start drawing my state pension till I am 68! eek

hostertlady

worried_jim wrote: »

I am transferring it to another pension scheme and being paid £11,948 to do so.

hiya, just a quick question, I know your sceme is different to mine but are you still paying into yours?
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