Civil Service Alpha Pension Transfer Quote

IronGiant

Hi All,

I have applied to transfer my private pension of about £7k (am told in my statement this could be worth £20 a month) to the Civil service pension alpha scheme and they have given me a value of £1.2k

Is this a good deal? I'm quite new to this and all I see is the huge difference in the figures but i'm sure this doesn't tell the full story.

Silvertabby

You give the Civil Service £7K and, in return, they give you an index linked pension of £1.2K per year for the rest of your life. If you live for 20 years in retirement, that's £24K (plus index linked increases).

Just note that if you opt to retire before your normal retirement age (currently the same as your State pension age) then this £1.2K will be reduced for early payment in the same way as your main scheme pension benefits.

Is it a good deal? I think so, but then I don't know how much you could expect your £7K to grow by if kept where it is. I dare say someone else will pop up with their views on that option.

Dox

Depends on your age and how well your private pension fund performs (i.e. grows in value) between now and your retirement. The choice is between certainty (transferring) or uncertainty coupled with opportunity - although that opportunity might not turn out to be in your favour. In the absence of a crystal ball, it all depends on your attitude to risk.

IronGiant

Thanks for the explanation that is super helpful

My statement says when I retire (approx 36 years time) that this £7k could become £9k and could be worth £20 a month, so £240 a year if I leave it alone.

So then the 1.2K option with Alpha would be the better option? as that is guaranteed £1.2k a year?

Silvertabby

IronGiant wrote: »

Thanks for the explanation that is super helpful

My statement says when I retire (approx 36 years time) that this £7k could become £9k and could be worth £20 a month, so £240 a year if I leave it alone.

So then the 1.2K option with Alpha would be the better option? as that is guaranteed £1.2k a year?

No-one on here can give you actual advice, I'm afraid. All you can do is weigh up the facts and hope that you make the right decision!

marlot

IronGiant wrote: »

...that is guaranteed £1.2k a year?

Yes, and it'll rise with inflation.


As to whether its a good idea - that's an impossible question to answer. For what it's worth, I'd transfer on those terms.

JoeCrystal

IronGiant wrote: »

Hi All,

I have applied to transfer my private pension of about £7k (am told in my statement this could be worth £20 a month) to the Civil service pension alpha scheme and they have given me a value of £1.2k

Is this a good deal? I'm quite new to this and all I see is the huge difference in the figures but i'm sure this doesn't tell the full story.

That is very good deal! I would take it right away!