CETV How much would temp you?.

ajbell

No, its not very tempting is it?.


Makes transferring more attractive if you are after the tax free lump sum.

ajbell

"How important to you are death benefits for spouse/dependant children?"


I don't have any dependants and I am not going to die.

neilvw

I like the optimistic attitude!

One advantage of a personal pension / drawdown is that you can leave the pot to anybody, not just a dependant (as in your DB scheme). The death benefits are essentially wasted in the scheme unless you acquire a partner or children.

Post #26 gives the death benefits for death while in service (not relevant to you).
Post #27 gives the death benefits for death in deferment. In your case this would just be a return of your contributions with interest, payable to your estate.

ajbell

I always liked the Pharaohs idea of taking it with you when you die.

neilvw

'Phair' enough :-)

Just the transfer value and the checking of the increases needed then.

bouicca21

Wouldn't it be simpler to find out how many years service the transfer would add to your current pension arrangeement?

ajbell

Thanks for the help. I should get the CETV in about 3 weeks.
I think it would need to be stupidly large to make me give up 5% rises for the rest of my life but we will see.
As I said earlier I do have another Final salary pension that I am still paying into.
I guess it does give you more flexibility but passes the risk to me.

ajbell

bouicca21 wrote: »

Wouldn't it be simpler to find out how many years service the transfer would add to your current pension arrangeement?

This is possible but my current FS pension is 1/80th and the deferred one is 1/60th. I already have 10 years in my current pension and will probably get another 10 years in without any transfers. So would possibly max out my current pension?.

kidmugsy

Increasing at 5% p.a. for (say) thirty years or so means that the pension will quadruple. But what its value will do, God knows. Would you like to bet on there being no substantial inflationary episode in the next thirty years?

What are the terms of your current DB pension? Does it give uncapped index-linking?

ajbell

kidmugsy wrote: »

Increasing at 5% p.a. for (say) thirty years or so means that the pension will quadruple. But what its value will do, God knows. Would you like to bet on there being no substantial inflationary episode in the next thirty years?

What are the terms of your current DB pension? Does it give uncapped index-linking?

No. my current FS pension is less generous, a 1/80th scheme and I think cpi with a cap of 2.5%.