Final salary transfer help

Benefriction

I am nearly 60 and have a final salary pension which will give a small income and/or lump sum. The income level provided by the scheme is insufficient for me to retire upon comfortably. This means that I will have to continue working until age 65 when I receive my state pension. The general opinion is not to come out of this type of pension but the CETV (cash equivalent transfer value) is £290k. I feel trapped by having to struggle on a small but guaranteed sum and worried about taking a risk with a large cash sum. Help!!

Silvertabby

If you are not yet 60 I think you'll find that your State pension age is 66.

Could you take your FA salary pension at 60 (by whatever means) and then work part time until 66?

kidmugsy

Benefriction wrote: »

a final salary pension which will give a small income and/or lump sum ... the CETV (cash equivalent transfer value) is £290k.

I think you'll have to tell us the size of the expected income/lump sum, to be compared with the CETV.

Also: do you have a spouse, or dependants, or any savings ....? Do you have anyone you'd like to leave money to? How's your health? Do you have any objective reason to expect an unusually short or long life? Is the FS scheme in good financial health?

xylophone

Have you obtained a new state pension statement?

https://www.gov.uk/yourstatepension?utm_source=Mail-Online&utm_medium=Partnership&utm_campaign=GTKY

http://www.thisismoney.co.uk/money/pensions/article-3994990/Should-transfer-local-government-pension-pot-private-fund.html

http://www.royallondon.com/Global/documents/GoodWithYourMoney/COMPANY-PENSIONS-FIVE-REASONS-TO-TRANSFER-OUT-AND-FIVE-REASONS-NOT-TO.pdf

Benefriction

Thanks Kidsmugsy the expected income
is approx £11k pa. If I take the max lump sum of £50k it drops to approx . £7k The scheme is with RBS and from what I know it is in ok shape even though RBS is in difficuties. My health is good and I am single with a dependent who doesnt want my pension. I have a tiny mortgage. Based on these figures the cash offer is almost 26/27 x the income. I understand I can take 25% of the CETV without paying tax this is tempting but how I invest the remaider?

Benefriction

I am in the unfortunate group of women who have had their pension put back another 5 years. I dont have a recent statement but the last time I ce ked it was £155 per week

xylophone

You will continue to work while drawing your RBS pension? Will this be for RBS?

You will continue to contribute to a pension scheme while you are working and possibly beyond?

You have other savings?

Is this your scheme?

https://rbs.tbs.aon.com/RBS/media/default/PDFs/Current%20Pension%20Plan/UK-Booklet-(also-known-as-Group-Pension-Fund-booklet).pdf

Benefriction

If I take the pension offer from RBS I have no choice but to work. I dont work for RBS now. Therefore I am unable to continue to contribute to it.I am not presently in a position to tf the pension into another pension scheme. Yes I have some savings and an ISA. Yes that is the scheme from what I can see. I was NatWest then taken over by RBS. It was a non contributory scheme. The scheme I believe does not now exist. I dont have to take the pension I can leave it in the scheme for a further period. Ideally I would like to be in a position to choose to work or not rather than through necessity.

atush

Take the pension un reduced at 60 if you can. with no lump sum if you dont need it.

Then pay into your current employers pension (or PP/Sipp) enough that you dont pay any tax on the pension income ie pay the full income into a pension if it is less than your current income.

dunstonh

I am in the unfortunate group of women who have had their pension put back another 5 years.

That is news. When did that happen? I am not aware of any group of women who have had their pension age put back another 5 years.

jamesd

Benefriction wrote: »

I am in the unfortunate group of women who have had their pension put back another 5 years.

No women have had their state pension age put back by another five years. Though there is a campaign group called WASPI that is trying to create a five year gap between when women one day apart will get their state pension benefit and to recreate the five year gap between when two people born on the same day get their state pension benefits.

There is currently under way a process of gradually implementing in small steps the state pension age change that was announced about twenty years ago. The difference between each successive group of women in this staggered plan is just a few months beyond the previous group so there's never a big five year gap based on just being a day apart in birth. There was also a recent change to add one year gradually for both men and women, starting once all women have the same state pension age as all men.