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Pension transfer?

Help! I'm after advice on whether to transfer my wife's old frozen pension to her new Teachers Pension, but I can't get my head round it. :confused:

The old pension has a value of £10400 and TPS tell us it will buy approx 1 year and 103 days pensionable service in the TPS. How do I work out if this is a good deal?

Thanks in advance...
I love a nice juicy "kebab"... ;)

Comments

  • dunstonh
    dunstonh Posts: 118,550 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    How do I work out if this is a good deal?
    What income will the old pension provide?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dunstonh wrote: »
    What income will the old pension provide?

    Apparently it's around £500/year..?!
    I love a nice juicy "kebab"... ;)
  • Any advice...please..?
    I love a nice juicy "kebab"... ;)
  • Andy_L
    Andy_L Posts: 12,958 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    1 year is worth 1/60ths of final salary in the TPS - how much is that worth now & what's here salary likely to be at retirement?
  • Andy_L wrote: »
    1 year is worth 1/60ths of final salary in the TPS - how much is that worth now & what's here salary likely to be at retirement?

    Current salary 40k
    around 18 yrs to retirement age
    Final salary..? maybe 70k?
    I love a nice juicy "kebab"... ;)
  • ...anybody?...please...pretty please...:o
    I love a nice juicy "kebab"... ;)
  • Andy_L
    Andy_L Posts: 12,958 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    We can't give advice as it could get Martin in trouble with the FSA but:

    Existing pension worth £500/year
    Transfer buys you 1+ year in the TPS, with 1 year worth 1/60 x £40000 = £666/year

    If you and your wife can't make a decision on that as to which is best I fear for the future of education :-)

    tbh it seems like such a good deal that there may (must?) be a mistake in either the valuation of her existing pension or the amount it will buy in the TPS
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