Spouse element of DB Pension

JillyC8

Hi all,
Having finally found out a little more about a deferred Defined Benefit pension, I have been given a forecast figure of £7200 per year at age 65 (current value £5200), with a spouse pension of £3600 if I die; or £34000 lump sum with £5000 a year pension and £2500 spouse element.

I'm currently 53 and weighing up my options. I will have full NI contributions in two years for the state pension, and also another small DB pension forecast at £1200 a year at 65, plus my current DC pension which is forecast at around £48000 at 65. Not a huge amount but all in all enough for just myself to live on with mortgage paid off when I retire.

Being that I'm divorced and do not intend to remarry, is it worth leaving the DB pension where it is or transferring to take advantage of this spouse element? Does anyone on here know how much this would be worth in transfer terms? I would also like to leave something to my two children to inherit rather than the pension just stop with no further benefit to those I've left behind.

I know how valuable DB pensions are, but want to make my life a little easier when I turn 55 if possible/children going to uni etc. I have requested a CETV but told this will take 10 weeks to provide.

AnotherJoe

What's the rush ?

ajbell

Guess 150 to 170k.

JillyC8

No rush right now, but want to understand what I can do at 55 ... and also whether it's worth transferring over the next year or so to take advantage of the spouse element.

ajbell, what calculation did you use?

ajbell

Roughly 30 to 33 times 5200.
Mine will pay me 10800 right now and I have been offered 447k but that has guaranteed 5% rises and retirement at 60. Actually that offer was about 18 months ago.

shinytop

I think the range should be more. I have 2 DB pensions and my CETV multipliers were 22 and 26. Needless to say I'm not interested.

JillyC8

Any views on the spouse element ..?

Thrugelmir

I'd focus on the secure guaranteed index linked for life income.

Leave your DC pot fully invested and bequeath this to your children.

JillyC8

Thrugelmir: as in leave the £40000+ DC where it is after retirement?

Thrugelmir

No need to make any immediate decisions.

JillyC8

I'm not going to make a decision now, but looking for thoughts/feedback on how valuable the spouse element is when it comes to a CETV. I don't see much point in hanging onto something that is superfluous if I can take advantage of it earlier to pay off mortgage.