Quick Qu on transfer out of a BD scheme

232607

What would be considered a fair CETV ratio from a BD scheme (IE, £xx amount per year) to a pot of money.

Brief details of the BD scheme:-
Minimum 5 years of payment after pension is activated.
2/3rd's Widow's pension.

Thanks in advance.

sandsy

It depends on so many factors that it's not meaningful to come up with a single figure, eg. Current age, years of service, pension increases.....

232607

Ok age 65 with 20 year in the DB & rises in line CPI

Linton

30 X annual pension at date of taking pension. Well that is very approximately what it could cost to buy something similar from a pension company.

Another poster mentioned a £500K transfer value from a £15K pension, but this was from a bank rather than public sector.

jamesd

The number given by Linton seems reasonable assuming that you are already 65. If you were 20 years younger with the pension due to commence at 65 it would be much less.

It's not very likely that you will get a high enough transfer value to make it worthwhile to transfer unless your life expectancy is much lower than usual. That's one of the main times when it can make sense to transfer out of a defined benefit scheme.

232607

Thanks all,

Understand that the general advice seems to be not worthwhile unless low life expectancy but I have other reasons for wanting to do this.
Not married hence the windows pension is wasted but I do have a Daughter/Grandkids who I'd like to have the money when I'm gone. I've also "loaded" my planned retirement spend so more "heavy" in the 1st 10 years. All this is possible with a pot of money, not so if I draw the pension.
I do have another section 32 pension that I'll be drawing so this somewhat mitigates the risk of converting the DB.

Thanks again.