Final salary transfer

GSP

Depending who is looking after your scheme, you may be able to run a report each day online yourself with a new CETV figure calculated. Which means you can pick the best figure as each are valid for 3 months.

Dox

GSP wrote: »

Depending who is looking after your scheme, you may be able to run a report each day online yourself with a new CETV figure calculated. Which means you can pick the best figure as each are valid for 3 months.

Doesn't work like that. Online figures will be labelled as 'for illustration only' or something similar. Also financial advice (including any transfer analysis) must be based on a definite CETV, so if the transfer value is £30K+ the adviser wouldn't be able to sign off on such a pick'n'mix approach and the transfer couldn't proceed.

GSP

I ran reports on a daily basis for four months and chose the highest figure as long as it was within the 3 month maturity date. That figure was good on the system like all the others I ran.
Again, depends on who is looking after the scheme.

Dox

GSP wrote: »

I ran reports on a daily basis for four months and chose the highest figure as long as it was within the 3 month maturity date. That figure was good on the system like all the others I ran.
Again, depends on who is looking after the scheme.

So how did your financial adviser deal with the transfer analysis....?

Brynsam

GSP wrote: »

I ran reports on a daily basis for four months and chose the highest figure as long as it was within the 3 month maturity date. That figure was good on the system like all the others I ran.
Again, depends on who is looking after the scheme.

Fascinated by this! What was the scheme and who administered it?

jamesd

famous5 wrote: »

Thank you for your reply. I have not obtained a SP forecast. Not sure what you mean by 'contracted out?" - I have paid NI for 38 years so Im assuming I would get full state pension. Have i misunderstood?

You're probably right about getting at least as much as the full single tier rate, but check for both of you.

There's no chance that you will get a maximum full state pension, that's more than £250 a week for a high earner who wasn't contracted out of the earnings-related part, as you were. But about £160 a week for each of you should be achievable.

It's often easy to fix so find out then let us know and w can suggest what to do.

jamesd

famous5 wrote: »

I am almost 57 and looking to finish work. I have a good final salary scheme which would pay around £40K at normal retirement or £32K if I went early soon. The CETV offer is around £1 million. I have little financial experience so have talked to an IFA who has advised me to take the transfer and finish. Where everyone!!!8217;s views please? Appreciate any thoughts.

That seems reasonable. If the Guyton-Klinger drawdown rules with 90% success rate are used you could expect an initial income of around 5% of the pot, say £50,000 a year if retiring soon, varying gradually based on investment performance but unlikely to go below £32k.

Given that you expect 8k from the state pension later you could bump that up to around £54k now and after state pension age from the two combined, taking more from the pot now and less from it once your state pension starts..

90% success rate means that in the worst 10% of historic cases a bigger bad investment results drop than is built in to the G-K rules would be needed. In the UK the worst cases were for those affected by the second world war. With average results the income would increase.

Pun

GSP wrote: »

I ran reports on a daily basis for four months and chose the highest figure as long as it was within the 3 month maturity date. That figure was good on the system like all the others I ran.
Again, depends on who is looking after the scheme.

CETVs need to be formally issued by the scheme. You might be able to apply for one when the indicative figures are looking good (although the scheme then has 3 months to issue a CETV, so no guarantees the figures will hold up), but you can't go for the pick your own method as you seem to be suggesting.

GSP

Well my figures were honoured from the system and report I ran.
I received one paper copy of everything with the all important figure and it was much the same as the figure produced off the system for that day.
Goes to suggest those looking after the scheme were quite happy of the accuracy of their information produced and available.