Civil Service Pension Transfer

atush

I didn't use it, but that is what I was thinking of as a major risk.

jamesd

It would be useful to know which IFA firm is involved, so we could at least check that they are proper IFAs who appear to have a reasonably standard advice business.

It would also be good to know what the CETV is, what here age is, what investment return the IFA says is required to match the benefits of the Civil Service pension scheme and what the Civil Service scheme would pay her if she stayed with it.

While it appears that to proceed she has to opt out, she should opt back in as soon as possible once that is done, if she goes ahead.

The amounts of money involved can seem very large. £10,000 of pension might lead to a transfer value of £280,000 or more. The catch is what it takes to reproduce that income. With an annuity that amount at 65 might buy only £7,000 of income at current annuity rates, while a person using income drawdown might take £11,200 instead from the same amount, accepting some investment risk. There's real potential for better outcomes but also real added risk of a lower income.

CathA

As promised here is an update on my friend's pension transfer.

Due to MyCSP having a backlog of paperwork, and as they are presently dealing with paperwork dated January 2015, she has been advised that her transfer request/paperwork will not be looked at or sent out in time for the cut off date. She e mailed DBS today to ask to be opted back in to the pension scheme.

Just thought people might be interested in the outcome, which was pretty much as I expected.