affinity connect .

xylophone

it seems to be compulsory to take my 30k lump sum . I did ask .

Some schemes have an automatic lump sum at retirement but offer the option of commutation of the pension to increase the lump sum and receive a lower pension going forward.

OP, have you looked carefully at your options? Has your wife?

Remember that your pension will be inflation linked in payment.


Have you both checked on your state pension position?

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

alfmurph

council worker .

alfmurph

I have been on a few weeks ago , explained our position and was advised to study pension investments such as passive investment but I was just asking about affinity as an ifa but perhaps not .
I am 65 with a council db pension of either 12k and lump sum of 80k or pension of 15k and lump sum of 30k
I intend taking the 15k and the 30k lump sum plus my £144 a week oap ..
My wife is determined to go the other way and take the bigger lump sum of 80k with a 12k pension . She will retire same time as me early 2019 when she will be 62 .No oap for her for 4 years .
Our problem which is really causing us to argue is that she has had crohn's for around 20 years and even though it is under control with medicine she has got it into her head that she will not live to an average age so she keeps saying she wants to trade in her db pension for the cetv package . I do not agree with her but it is her life and pension . I know she cannot do this without advise but it is causing arguments . Her db pension is with a private company and some of her workmates are telling her the communication factor is around 20 to one .
She is tempted even though she has not asked the question about the numbers .
Never thought pensions could be so stressful .

xylophone

the communication factor is around 20 to one .

Commutation factor which at 20:1 is not as dire as the LGPS 12:1 but still not over generous.

Is she getting confused between commutation to increase her lump sum and getting a CETV so as to be able to transfer out into a DC arrangement?

She would certainly need the advice of a Pension Transfer Specialist before a transfer out if (as seems virtually certain) the value of her benefits would be higher than £30,000.

She will retire same time as me early 2019 when she will be 62 .No oap for her for 4 years .

Has she checked her state pension statement?

Is her pension forecast to be under a full new state pension?

If so, had she considered voluntary contributions?

https://www.royallondon.com/global/documents/goodwithyourmoney/topping-up-your-state-pension-guide.pdf