old db pension any good

stu12345_2

i have an old employers db pension from 1992 to 1995, i paid 2000 into it.
it says its value is 500 a year with lump sum of 1500, and converts to 3600 a year and lump sum of 11000 when 65 if rpi runs at max of 5% and pays out indexing for life to max 5% rpi.

rpi has only averaged say 2.5%, stock market has done better.
the 500 is made up of gmp 150 rising 7% and non gmp 350 at rpi.
my employer stated in recent letter it will still grow at 7%, but non gmp will now only grow cpi.
i understand come april if its worth under 30000 i can transfer to dc without an ifa.
if stock market does say 7%, surely this will match the gmp bit and be better than the non gmp bit will only rises by cpi which is 1.2% at mo.

stu12345_2

i had a transfer value last april of 17100 reduced to 13500 as scheme is in deficit, employer states it will be in deficit till 2025

i can retire at 60 with a reduced pension of 22%
or 55 reduced 46% only if non gmp covers the gmp amount,based on low rpi it seems unlikely i can get it at 55. the commutation rate is 23 at 55, 20 at 60 and 18 at 65 for lump sum.

it doesnt matter when i take it overall as the grand totals paid out cross over aged 83 i believe.

stu12345_2

an ifa said to leave it till 55 then consider transfer if i want to draw it down at 55, but it will only grow by cpi non gmp and 7% gmp till then, i know when im 55 it will prob worth more than 30000 hence have to pay an ifa.
but fear is if i transfer for free whilst its worth under 30000, based on triviality rules, a new gov could kick in and say annuities must be bought as id prefer drawdown at 55 rather than regular sum at 65.

also does anyone have more info on gov consultation they made in june to allow folk to drawdown db pension rather than transfer to allow same flexibilty.
there has been no more internet news since june.

mgdavid

stu12345 wrote: »

old db pension any good?.

yes, all DB pensions are very good; leave it alone.

stu12345_2

so more detailed answer regarding gov consultation, also non gmp only goes up cpi, stock market does better

i understand current db members get good deal as its a % of every year they are employed, but what about defered members, its only cpi non gmp or 7% gmp. thus averages say 3% when combined, stock market averages more than 3% over 20 years