Workplace pension talk

rpc

His colleagues are probably in awe at "ZOMG I've got half a million quid" or similar because they never truly appreciated the value of their DB pensions. Never having understood what they have, they've decided that the offer is far to generous so must be taking out more money than the scheme has available.

The reality is that most people underestimate how much guaranteed (or even low-risk drawdown) retirement income costs. Then add in life insurance and spousal benefits that are often part of the DB pension too...

Trustees are legally required to make sure that any transfers out don't affect other scheme members. The transfer value is, and can only be, the trustees estimate of that member's benefits. There are a whole load of assumptions under that, of course, but the principle is clear.

jamesd

The no pension pot left reason doesn't make sense but it could still be a good move. Depends on how high the transfer value is. Many are currently at very high levels.

elantan

Thanks everyone, have shown husband this thread and printed out the links, husband has taken them into work and shown a few colleagues ... I dare say further discussion will take place

Bootsox

Due to various historical mergers, National Grid have different final salary pension schemes (which are run independently from each other).

...your husband should receive an annual statement from the pensions department which will clarify which scheme he is a member of.