Final Salary Scheme

Silvertabby

Taking pension at 55 will give me a pension of £4328.98 with a 25% lump sum of £22231.49.

Taking pension at 60 will give me a pension either a full pension of £5178.95 or a reduced pension of £3890.49 with a 25% lump sum of £25936.62. Posted by Wolf52

You need to query the letter before making a final decision - these figures can't both be right.

Assuming that the age 60 quote of £5178.95 pension OR £3890.49 pension plus £25936.61 lump sum is correct, then I would expect the age 55 quote to be more like £4328.98 pension OR £3K (ish) pension plus £22231.49 lump sum.

Wolf52

I've had an initial meeting with an IFA, I've various forms to complete and other info to supply and they will then risk assess it all. I will see what he says about these figures, Silvertabby and Sandsy.

Thank you.

Wolf52

A very long overdue update. The selected IFA wouldn't agree to the transfer as NHS pensions will not provide an absolute pension forecast. I will look at this again after Easter, with another IFA.

Sigh.

JoeCrystal

Wolf52 wrote: »

A very long overdue update. The selected IFA wouldn't agree to the transfer as NHS pensions will not provide an absolute pension forecast. I will look at this again after Easter, with another IFA.

Sigh.

Except you cannot transfer out of the NHS pension scheme in the first place. Is this what you are trying to transfer out? If so, then I am afraid that it is just not possible I believe.

hyubh

Wolf52 wrote: »

The selected IFA wouldn't agree to the transfer as NHS pensions will not provide an absolute pension forecast. I will look at this again after Easter, with another IFA.

What is an 'absolute pension forecast'? As JoeCrystal says, if you mean a CETV for the NHS pension, that won't be possible. If you mean, what you will get from your NHS pension, to put against the risk of transferring out the private sector one, I doubt the administrator will ever use such language, even on a retirement quotation one year from NRA (e.g. if it came to be discovered that the employer provided duff data, your rights will remain the pension actually due, not any pension previously calculated on the duff data). However, as a statutory DB scheme, the rules are public knowledge and the benefits guaranteed in law, so it would be a bit of a misunderstanding on the IFA's part to seek some sort of higher certainty for something that is already as certain as pensions can be.

Flugelhorn

The NHS pension "forecasts" tend to be what is on Total Rewards Statements - all of which have be taken with a pinch of salt. Though with one job, straightforward timescale and officer pay this shouldn't be too much of a problem.
However they never confirm the full amount until you actually apply for the pension

mgdavid

JoeCrystal wrote: »

Except you cannot transfer out of the NHS pension scheme in the first place. Is this what you are trying to transfer out? If so, then I am afraid that it is just not possible I believe.

If you read the thread (or even just post #1) you'll see the OP is not wanting to transfer an NHS pension.

xylophone

Except you cannot transfer out of the NHS pension scheme in the first place. Is this what you are trying to transfer out?

No, the OP is currently working for the NHS and contributing to the NHS scheme - she also has a deferred non public sector DB pension and it is this that she is seeking to transfer out.

Hello, I have a DB pension which has been deferred. I am waiting to receive a CETV for this as well forecasts of what it would be worth as a pension if taken at ages 55 and 60 with and without lump sums. I'm thinking that I would like to transfer my DB pension so that I can use the lump sum to pay off the mortgage and draw down thereafter if required.

As a back-up, I also will have full State Pension and (if I stay working for the next 20 years), 26 years worth of NHS pension (the 2008 and 2015 Schemes).

My husband is a brain tumour survivor with a limited life expectancy and I would like to be able to leave some of the DB pension to our only child (currently a teenager) which of course I would be unable to do under that scheme. My own health isn't great, I have autoimmune diseases, but nothing that will limit life expectancy. My husband will have a state pension, but unlikely to be a full one. He also has two small personal pensions that aren't worth very much as he is unable to pay into them.

Do you think this would be a sensible course of action from me - I've just turned 49.

sandsy

Wolf52 wrote: »

A very long overdue update. The selected IFA wouldn't agree to the transfer as NHS pensions will not provide an absolute pension forecast. I will look at this again after Easter, with another IFA.

Sigh.

That's bizarre. Although I'd expect an IFA to look at your other retirement provision, just knowing what you've accrued to date should be sufficient for them to take it into account as part of their advice, with a few sensible assumptions.

Many DB schemes don't provide projections of future income (although incoming regulation will change that).

If an IFA can't do that, I'd doubt their ability to provide decent advice anyway.

JillyC8

Could I ask what the original figure was for your DB pension, i.e. The annual total before you received the CETV quotes?