Final Salary Pension - transfer out

xylophone

I have DB frozen with 18 years service

What do you mean by "frozen"?

https://www.barnett-waddingham.co.uk/comment-insight/blog/2012/07/24/revaluation-for-early-leavers/

Have you and your wife obtained new state pension statements?

https://www.gov.uk/check-state-pension

Brynsam

Worth a read: http://the7circles.uk/robo-advisors-any-good-ones-yet/

jamesd

Brynsam wrote: »

Flexibly accessing a pension means any future contributions will be limited to £4,000 a year - rather a low ceiling for someone aged 55 if they later decide they need to pay more into a pension.

Yes, that's something to consider, though it seems that they have sufficient resources to avoid triggering this for some considerable time if they wanted to.

For others, "flexibly accessing" has a narrow meaning that for the most common cases is:

1. Taking taxable money from a flexi-access drawdown pot other than by using the small pots rule
2. Taking a lump sum using the UFPLS rules.

It doesn't include:

3. Taking the 25% tax free lump sum
4. Taking income from a lifetime annuity
5. Taking income from a defined benefit pension.

So sometimes income from a DB pension could be a better move than living on the 25% tax free lump sum after transferring it.

However, that's not a highly likely situation if you consider a conservative for today transfer value of 30 times the income. 25% of that is 7.5 years of income before considering investment performance and inflation so takes a 55 year old to 62-63 and the small pot rule can be used to further extend it.

I'm in the take benefits without flexible access to avoid the MPAA cut to 4000 a year set because I want to make far higher contributions than that.

Brynsam

I thought this was ringing bells....see a previous thread https://forums.moneysavingexpert.com/discussion/5808057/db-transfer-important-question-to-ask-your-ifa&highlight=transfer&page=2#topofpage

in particular posts 35 and 36 and 39.

Dox

Brynsam wrote: »

I thought this was ringing bells....see a previous thread https://forums.moneysavingexpert.com/discussion/5808057/db-transfer-important-question-to-ask-your-ifa&highlight=transfer&page=2#topofpage

in particular posts 35 and 36 and 39.

Seems to answer OP's question pretty comprehensively!