Local Govt. Transfer out ?

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
5 replies 659 views
Euryalus1978Euryalus1978 Forumite
4 Posts
I'm shortly retiring at the age of 60 & I am already in receipt of a final salary pension from the company I was outsourced from. Upon retirement I will also access two defined contribution schemes I also have & take the 25% tax free & drawdown the remainder.
I also have a final salary pot from many years ago when I worked for our local authority & I'm contemplating transferring this out into a SIPP. The figures amount to about £3000 per yr. pension with a lump sum of around £8,000. I was quoted a transfer out value of around £62,000 about 18 months ago & am unsure as to what course of action to take. I do realise I will receive a slightly larger lump sum but also am aware that this pension is for life & index linked, & I'll also lose the spouses pension element & also pay higher fees to any new provider & the pot could run out eventually. Can anyone help me with my decision please !

Replies

  • p00hsticksp00hsticks Forumite
    8.9K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    As the CETV is over £30,000 then you have to get advice from a suitably qualified financial advisor before you are allowed to an transfer out, so best see what they say.
  • nocashnocash Forumite
    35 Posts
    Part of the Furniture 10 Posts Combo Breaker
    It looks like a multiplier of 20 so I would leave it where it is unless you are desperate for the cash or likely to die in the next 10 years or so, in which case the CETV monies are passed on tax free.
  • BrynsamBrynsam Forumite
    3.6K Posts
    Fifth Anniversary 1,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭
    I do realise I will receive a slightly larger lump sum but also am aware that this pension is for life & index linked, & I'll also lose the spouses pension element & also pay higher fees to any new provider & the pot could run out eventually. Can anyone help me with my decision please !

    Perhaps read your own post and you might find you've answered your own question! If there are so many negatives, why do it? What are you trying to achieve?
  • kidmugsykidmugsy Forumite
    12.7K Posts
    Tenth Anniversary 10,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭✭
    There are perhaps millions of people who'd rather like to be able to do the opposite: invest £54k to get a guaranteed, index-linked annuity of £3000 per yr. from age 60, with 50% for the surviving spouse.

    You may have worries enough with your DC pensions - the worry-free LGPS pension looks sparkling value to me.
    Free the dunston one next time too.
  • DoxDox Forumite
    3.1K Posts
    1,000 Posts Third Anniversary Name Dropper
    ✭✭✭✭
    Not sure what the Scheme's retirement age is for you but if you have reached it or are within 12 months of reaching it, are you sure you still have the option to transfer out?
This discussion has been closed.
Latest MSE News and Guides

Energy price cap could be extended beyond 2023

New plans have just been announced by the Government

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals