Understanding a CETV

Brynsam

PhilNHove wrote: »

Wow - two very powerful answers. Suppose I'll have to guess the multiple!

The multiple is quite simply irrelevant. If you decide to transfer out, what matters is how your fund performs once you've done so - the risk will be all yours....

happyandcontented

sandsy wrote: »

Nothing has disappeared. If there is no spousal pension on death before the pension commences, then that's just the way the pension scheme was set up and the amounts paid in by the employer reflect the expected cost of the actual benefits that will be payable.

FS salary schemes vary enormously in what they offer. It's good that you've found out and been able to make alternative life assurance arrangements. However, if that's your main reason for considering a transfer - ie. the risk of dying before the pension comes into payment - it's unlikely to be an overriding factor in any transfer advice you receive, unless you have a life limiting illness.

I accept that it might not be the overriding factor but it is a factor when the CETV was c850k....

Brynsam wrote: »

Don't be afraid to go back to the people running the scheme and ask them to confirm again if you aren't absolutely certain

We did confirm that is the case and so we took out life cover for a period to cover the time till SRA.

jamesbond_1

This is a sainsburys pension 50 percent paid to partner in death it also comes with lump sum of 45 k ?:) does this look good for a transfer or should be leave it alone , I have 2 other pensions as well by the way I’m 51 years of age

Many thanks for any help

AlanP_2

jamesbond_1 wrote: »

This is a sainsburys pension 50 percent paid to partner in death it also comes with lump sum of 45 k ?:) does this look good for a transfer or should be leave it alone , I have 2 other pensions as well by the way I’m 51 years of age

Many thanks for any help

So you would get a Tax Free Lump Sum of £45k and an annual pension of £9250, at whatever the scheme retirement age is, for life with 50% going to your spouse if they survive you?

That's probably 60 or 65 and I assume the pension has some kind of CPI / RPI inflation linking?

Or, you can take a lump sum now of £141k, and invest it so that you have a pot that generates income for you, income that you may need to last 40-50 years.

I know what I would be sticking with.

I agree the CETV seems low compared to numbers you see quoted sometimes but so what?

If you didn't need the £9250 a year, because your other pensions are going to give you £50k a year say, but would like to have a larger cash pot that could be passed on as an inheritance then go for it, but again the multiplier is irrelevant.

What are your needs and how best can you achieve them?

Prism

mgdavid wrote: »

I'll pick up on 'presumably' and 'should'.
If somebody cold-called with that sort of offer I'd say it was a scam.

Not that anyone should listen to a cold caller but you really think that a 6% return per year is in scam territory. I think thats entirely within reason. Its only 3-4% after inflation assuming current rates.

Thrugelmir

jamesbond_1 wrote: »

Hi,
new to this forum,quiick question,ive just had a cetv value for an old final salary pension i had from 1988 to 1999,the total transfer is 141k or £9250 per year,does look right as i think the cetv is a bit low ?

If the fund is in deficit at the current time. Then you cannot receive more than an equitable share. The pension is a guaranteed benefit that the trustees and the Company will be looking to fulfill. Perhaps by the Company making additional annual lump sum contributions to eradicate the fund deficit.

Brynsam

Thrugelmir wrote: »

If the fund is in deficit at the current time. Then you cannot receive more than an equitable share. The pension is a guaranteed benefit that the trustees and the Company will be looking to fulfill. Perhaps by the Company making additional annual lump sum contributions to eradicate the fund deficit.

Just because a fund is in deficit (and currently very many are) doesn't mean the trustees can automatically choose to pay reduced transfer values. See https://www.thepensionsregulator.gov.uk/en/document-library/regulatory-guidance/transfer-values and read from point 34 on.

blisteringblue

Care this is a new post on an old thread with different users, JamesBond1 you should really start your own thread.