Small pension - is it worth me transferring out?

xylophone

With regard to an annuity, would there be a spouse option and index linking?

Phaser

Thanks,
I’ve spent the last two days making enquiries etc to find out (after spending 30 mins on the phone with each different company) that some won’t discuss it until I’m actually 55.
The online calculators did generate a company that contacted me locally (part of a bigger group of IFA’s.)
I have made an appointment with an IFA after speaking generally over the phone. No up front charge but if I’m recommended a product ( they may recommend I stay put or I may not choose to take it in which case no charge) then the fee is .5% - is that standard?
Also, am I able initially chat with more than one IFA?
Ps I’d be lost if I couldn’t run this stuff by you guys - it’s making me search, ask q’s and learn stuff I shouldve grasped years ago. This stuff should be taught at school! Maybe it is now.

Phaser

xylophone wrote: »

With regard to an annuity, would there be a spouse option and index linking?

After chatting they wouldn’t go into it further as I’m not 55 yet. Computer said nooooo!

Phaser

xylophone wrote: »

https://adviserbook.co.uk/

When the menu comes up you can tick confirmed independent

and pension transfer.

Thanks. Had two different IVA’s visit on fri. Totally different vibes - both explained everything thoroughly and both gone away to consider & advise.
Different approaches too - although with both there is a case to be proven apparently as it’s a DB scheme.

hyubh

Phaser wrote: »

I was quoted £2000 for advice today - whether he recommends I transfer out or not. I understand the reports etc have to be charged for. Not keen on that one as it was completely done over the phone and via email. Rather see someone face to face.
Q. Whilst doing some searching I found an annuity calculator giving back a TFLS of £37,500 and £407 a month for 25 years ( I’d be 80 when it finishes) from a transfer of £150,000 - is that really achievable? I know the down sides of annuities.

Why the apparent obsession with transferring out...? Particularly if the first thing that comes to mind is buying an annuity with the resulting DC pension, since a regular income is exactly what a final salary pension in payment is.

sandsy

You have said you are risk averse and you have said you are considering buying an annuity which is a guaranteed lifetime income.

But a DB scheme is generally the cheapest form of lifetime income available.

It's really not clear why you are considering transferring. It's unlikely that an adviser will be able to recommend a transfer for you if you can't articulate why it's important to you and why a DB scheme wouldn't meet your needs.

I understand you can't get projected figures from your DB scheme. But that, in itself, isn't a good reason to look at a transfer. Generally, the pension income quoted when you left goes up roughly in line with inflation so that it maintains its buying power.

Don't let yourself be swayed because the transfer value looks big - if it's big, it's big because you'd be giving up a valuable benefit.

I'd also be wary of the adviser quoting 0.5% for a product recommendation because £750 for pension transfer advice comes nowhere near covering the cost. Check there's no further implementation charges involved.

Phaser

hyubh wrote: »

Why the apparent obsession with transferring out...? Particularly if the first thing that comes to mind is buying an annuity with the resulting DC pension, since a regular income is exactly what a final salary pension in payment is.

Hi. Thank you. Since starting this thread and the discussions I have found out & learnt a lot!
The reason for transferring out was because I was exploring if it could work for me better elsewhere if I were to take it early. I understand now that the scheme it’s in is just like an annuity where flexibility (or lack of) is concerned. Several life changes around me have maid me consider taking my pension early which started this whole debate really. The possibility of not taking it early but being able to trigger it when needed has now made me look into drawdowns. My attitude to risk has moved slightly after learning a little more.

Phaser

sandsy wrote: »

You have said you are risk averse and you have said you are considering buying an annuity which is a guaranteed lifetime income.

But a DB scheme is generally the cheapest form of lifetime income available.

It's really not clear why you are considering transferring. It's unlikely that an adviser will be able to recommend a transfer for you if you can't articulate why it's important to you and why a DB scheme wouldn't meet your needs.

I understand you can't get projected figures from your DB scheme. But that, in itself, isn't a good reason to look at a transfer. Generally, the pension income quoted when you left goes up roughly in line with inflation so that it maintains its buying power.

Don't let yourself be swayed because the transfer value looks big - if it's big, it's big because you'd be giving up a valuable benefit.

I'd also be wary of the adviser quoting 0.5% for a product recommendation because £750 for pension transfer advice comes nowhere near covering the cost. Check there's no further implementation charges involved.

Hi. Thank you. Lots of life changes around me have made me consider the whole pension thing. I realise now that the scheme it’s currently in is just like an annuity where flexibility (or lack of) is concerned. It’s not the size of the transfer value - but what it could be moved into and the possible return. I’ve really changed my attitude towards drawdown products since learning a bit more. If I trigger the current scheme early instead of 12 years time - I can’t switch it off. If I trigger it, I have to continue taking it. I understand that’s how the scheme was built. I may need to care for a relative in the next year or two so my working hours (and income) will fluctuate. I’ll check the further charges and put them up to see what you think (if you don’t mind).