Final salary pension closure

Malthusian

xylophone wrote: »

CPI inflation rate rather than RPI inflation rate would be used in the new scheme.

My understanding is that if the OP goes into the PPF, CPI inflation rate will be used anyway. So that is not an issue.

The letter of May 2016 suggests that the people who would benefit from going into the PPF would be those who were entitled to spouse's pensions less than 50% (who would have them bumped up to 50% by going into the PPF) or those in receipt of certain bridging pensions, neither of which applies to the OP as I understand it.

xylophone

My understanding is that if the OP goes into the PPF, CPI inflation rate will be used anyway. So that is not an issue.

The OP seemed to think that the inflation rate could be RPI.

the BSPS is going into the PPF but we can transfer into a new scheme that will increase at a the lower rate of inflation (is it the RPI)

xylophone

Looks like the majority of people are going to transfer their pot out into a private pension

https://www.ftadviser.com/pensions/2017/06/06/tata-steel-pension-scheme-transfers-double/

https://www.bspensions.com/

The Pensions Office will provide a transfer value quotation on request. You would then have a three month period in which to decide if you want to take the transfer value and to choose the pension arrangement to which it would be paid. If the transfer value is more than £30,000, you must take independent financial advice.
The Pensions Office is currently experiencing high volumes of requests for transfer and early payment quotations. Special arrangements have been put in place to handle these requests, which are being processed in order of receipt. Transfer value quotations are required to be provided within three months of the Pensions Office receiving a request. Every effort is being made to provide quotations earlier than this.

Wrighty69

I am waiting for my transfer value now but I think it will be about £520k, in todays figures if I went for an annuity I would get £1,700 a month from the age of 55 with my wife getting a widows pension of 50% of that or I could keep the pot and go for a draw down pension to get an equivalent amount with no widows pension.
That sounds a lot better than £10,500 a year in the new BSPS pension scheme.
That annuity is gone now, best I could get is £1200 a month with no widows pension

Wrighty69

I have been to see a financial adviser with a company called Prism, they want to charge 1% to transfer it out then 0.5% per year management charge. Think I will take them up on the offer.

Teaandscones

A useful article from henry tapper's blog.

https://henrytapper.com/2017/10/25/the-legitimate-concerns-of-bsps-members/

sandsy

Wrighty69 wrote: »

I have been to see a financial adviser with a company called Prism, they want to charge 1% to transfer it out then 0.5% per year management charge. Think I will take them up on the offer.

Have you had the advice yet? Have they recommended a transfer? Be careful - there's a lot of talk of scams and not knowing where the money will be invested after it's transferred out.