Transfer defined benefits pension

bigfreddiel

xylophone wrote: »

Use earned income to contribute to a personal pension until you give up work?

Actually it had crossed my mind to do that, need to check it out. Cheers fj

RickyB2000

Is this an accurate analogy of what you want to do?

£1,000 in a saving account paying 20% interest (no more can be paid in)
£20,000 in a saving account paying 5% interest
Because you only want interest paid from one account, you want to move the £1,000 to the lower paying account?
Or is there something else at play here? Some other reason than just wanting all in one place?

You need to ask the scheme you are transfering into if they will take a DB transfer and what their requirements are.

Personally, I would look to diversify my pension assets across DB and DC and across providers. Greater protection and flexibility when I come to retire.

FatherAbraham

mark5 wrote: »

i know the general opinion is that moving a db pension to a dc fund is bad value but,

...

It pays out at 60 but I doubt I will be able to retire then.

So you take the regular income from the DB scheme when it starts to pay at 60, and pay an equivalent amount (taking account of tax relief) into a DC pension scheme.

Warmest regards,
FA

ss53

A DB scheme is not completely risk-free as stated above. You have counterparty risk which you don't have (so much) with DC schemes. The pension protection fund should mitigate this to an extent with the proviso that it could take a couple of years to receive compensation. For me personally, this is the only factor I would take into account in considering a DB to DC transfer.