db pension

richierich007

thanks for the advice
i`m going to get a cetv and also my current dc fund & its expectation
as i dont have dependents etc and i`m a smoker i really do think it could be worth taking and seeing what comes up, main points will be what charges do i carry and also what payment up front and is my money safe

wil keep you lot updated but could be a while

ps forgot to add ive been in the scheme for 31 years only paid into it 26 years if that matters

GDB2222

richierich007 wrote: »

thanks for the advice
i`m going to get a cetv and also my current dc fund & its expectation
as i dont have dependents etc and i`m a smoker i really do think it could be worth taking and seeing what comes up, main points will be what charges do i carry and also what payment up front and is my money safe

wil keep you lot updated but could be a while

ps forgot to add ive been in the scheme for 31 years only paid into it 26 years if that matters

The problem with money purchase drawdown is that you don't know how long you will live. For someone in normal health, life expectancy at age 55 is 30 years. For a smoker with some health issues, maybe 20 years.

But both those figures are averages. If you work out your drawdown allowing for 20 years and die after 10, you'll leave roughly half your fund behind. If you allow for 20 years but live for 30, you'll live in penury for the last 10 years. It's a terrific gamble, and you are almost bound to get it wrong.

If you keep the DB pension, you'll get paid however long you live.