Pension Transfer Value Help

wencas

Over the last 7 years I have paid in £13k into a final salary scheme (matched by my employer) I've requested a transfer value and undertstand this can be effected by a number of variables!

Anyone have any ideas of a formula/advice to work out what the transfer value may be?

dunstonh

There is no way to tell as it really depends on the penatly applied by the scheme.

The amount you paid into it doesnt mean a thing with final salary schemes.

90% of the time, final salary schemes are best left where they are.

jonathon_hart

The concept of how a final salary transfer value should be calculated is that it is amount of money you would need to invest now in order to provide the same level of benefit at retirement. It is based on (not an exhaustive list)

The amount of pension
Your age
The scheme retirement age
An assumed level of growth of the fund
An assumed level of inflation
An assumed annuity rate
Other scheme specific factors - such as any unusual benefits provided by the scheme for which a "value" would be calculated or whether the scheme is in deficit/ surplus

As you can see there are several major assumptions involved in this calculation. The exact formula will vary from scheme to scheme.

You may wish to consider taking advice before proceeding with the transfer though - what I have put above is just a sample list of the factors considered in a transfer value.

Thanks

Jonathon