Can I improve on my DB pension?

scoobydoo66

I have a deferred DB pension, transfer value just shy of £400k.
The benefits are linked to inflation (maximum 5%), and there is a 50% spouse's pension.

I have calculated that the pension offered is around 3.5% (@59) of the transfer value.
If I could get it signed off, surely a professional could improve moderately on 3.5% ? And leave a 100% spouse's pension? And possibly something for the kids ?

Any comments welcome.
TIA

atush

Not sure if an IFA could better the 3.5% for an indexed, 100% spousal pension.

that is the rate I usually see for an indexed pension w/spousal of 50%?

sandsy

atush seems spot on. And even though you could probably better 3.5% if you were prepared to risk not having a guaranteed income, the signoff would have to be based on replicating the benefits of the DB scheme via an annuity.

xylophone

https://forums.moneysavingexpert.com/discussion/comment/67916666#Comment_67916666

I've been out of work since I was 50, I've lived off savings for years, those savings are reducing dramatically,

Presumably those savings were invested - you have noticed that they can reduce dramatically.

If you transfer out of this DB scheme, you will essentially be living on savings until you shuffle off this mortal coil- how much might be left for your spouse?

A ninety four year old of my acquaintance has been drawing his DB pension for 34 years.....

Have you checked your/ your spouse's state pension position?

https://www.gov.uk/future-pension-centre

kidmugsy

I suppose if you fancy a punt you could transfer the lot, spend part of it on an index-linked annuity (e.g. without the 5% cap, and with 100% widow's pension if you want) and try your luck at investing with the rest.

On the other hand you could take the DB pension and cover your widow and children with some life insurance.

How's your health? Is your family long-lived? Is the DB scheme in good financial nick?

scoobydoo66

xylophone wrote: »

https://forums.moneysavingexpert.com/discussion/comment/67916666#Comment_67916666



Presumably those savings were invested - you have noticed that they can reduce dramatically.

If you transfer out of this DB scheme, you will essentially be living on savings until you shuffle off this mortal coil- how much might be left for your spouse?

A ninety four year old of my acquaintance has been drawing his DB pension for 34 years.....

Have you checked your/ your spouse's state pension position?

https://www.gov.uk/future-pension-centre

She has a full state pension (£6k ish)@67 and a small DB pension @ 60.