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Cetv
JillyC8
Posts: 219 Forumite
I received a CETV today on a small deferred pension from almost twenty years ago, current value £5254.85. The current TV is £93,450.84, which is around 17-18 times the value.
I don't intend to transfer it at this time but I am disappointed in the value... I'm 53 at the moment so I'm assuming the longer it's left is a good thing?
I don't intend to transfer it at this time but I am disappointed in the value... I'm 53 at the moment so I'm assuming the longer it's left is a good thing?
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Comments
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Why are you disappointed? Do you think that you could manage the money better and achieve a better return, than drawing an index linked pension for life.0
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Why are you disappointed? You joined a defined benefit scheme which will pay the promised benefits in due course, so you'll get what you signed up for.
The CETV may go up or down in years to come, depending on a number of factors (especially the investment profile of the scheme).0 -
I'm disappointed as I'd hoped it would be more but I'll see what the CETV is in a couple of years.0
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Thrugelmir: I want to transfer and draw on it to pay off my mortgage eventually, not invest it.0
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You are aware that you will have to pay income tax on 75% of it if you want to pay of the mortgage in one lump sum, a good amount of that tax at the 40% rate.0
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Yes I am aware ... my hope was to transfer it to a DC pension then draw down so much each year after taking the 25% tax free sum at 550
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We got a CETV figure for an old DB pension my wife has, the figures were very good. After speaking to my IFA he was very anti cashing in and transferring to a SIPP, for several reasons, the main ones being the guaranteed income and the index linked increases and the fees as he would have to indemnify it.0
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I'm disappointed as I'd hoped it would be more but I'll see what the CETV is in a couple of years.
Many schemes are currently reviewing the basis of their CETV calculations and the general trend is higher numbers for younger members, but lower ones for those in the 50+ age bracket, so don't be surprised if you receive a lower number in a couple of years.0 -
Is this the LGPS by any chance? If so, then the (age sensitive) transfer factors are set by GAD and are unlikely to change much in 2 years.0
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