What to do with DB Scheme

ams25

Another vote here for keeping the combination of DB and DC (plus SP). That's what I have (c.50:50 DB DC split) and I'm not giving it up even for 40x. (my CETV was much less, mind).

A good DB / DC mix is very compelling if you are lucky enough to have it. (read Wade Pfau, Retirement planning guru, on this topic). Safety first income for basic living expenses and DC for more discretionary spend and major one offs. Yes, with 40x you could potentially do better financially, but having over 50% of your income in secure safety first assets as you grow old, has a lot of value vs having around 75% in more volatile funds if you transfer. For UK investors with a globally diversified 60:40 portfolio, you are looking at guideline safe withdrawal rate of close to 3% net (not the much touted 4% which also excludes fees). Managing 900k might be ok when you are in your 50s but may not be so easy when you are in your 70s (and that's without the fretting wife ).

It is a personal choice and very much based on individual circumstances, but many experts would say you have a good retirement portfolio right there.

If it ain't broke...

hyperhypo

I had (and still have) a similar situation of lesser value , a combined DC / DB pot of c. £600k from a DB transfer of c. x33 deferred past value ...

..Interestingly the CETV of c. £422k hasn't varied this last couple of years.

I haven't done it though...i'm minded to combine the DC/DB approach.

That said i do wonder and it it were a x40 calc i'd be fretting more perhaps....i haven't done anything as don't have sufficient cash outside of potential combined SIPP and so would have to create a sufficient cash buffer inside drawdown fund or use the Tax free element, and so reduce residual fund.

I guess a partner with a DB scheme or a chunk of assets / inheritances outside of pension might change my view though...but as i don't have any of these the decision is lighter.