Cetv

JillyC8

Hi, it isn’t LGPS , it’s a scheme run by Trigon Pensions on behalf of my old employer ...

Silvertabby

JillyC8 wrote: »

Hi, it isn’t LGPS , it’s a scheme run by Trigon Pensions on behalf of my old employer ...

Rules that out as a reason for the low CETV then - the LGPS GAD set transfer factors are notoriously stingy.

JillyC8

I’m 53 now ... would it be likely to become more generous the closer to retirement I get?

Silvertabby

JillyC8 wrote: »

I’m 53 now ... would it be likely to become more generous the closer to retirement I get?

Really impossible to know, I'm afraid. It depends on the scheme rules, the transfer factors it uses and - the biggie - how well the scheme is doing.

Albermarle

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 55

Presume you know that to transfer out of a DB pension means a compulsory review with an IFA.
Cost will be high £3k or £4 K ? and if the IFA advises you not to transfer out , you still can, but a lot pension providers will be reluctant to accept a transfer in on this basis.

MallyGirl

tony4147 wrote: »

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.

I got the CETV for my only DB pension and it is staying where it is even though the ratio is way higher than OPs.
CETV £83k
Annual pension £1753 plus £109 pa till age 65 so that makes the basic multiplier 47 x.
By the time you throw in a weird additional £18k pot earned before 25 (that will buy additional benefits but they won't say what those are), GMP, spouse and child pensions, and the fact that I would have to pay for advice to transfer it just wasn't worth it. I do have the option of a small cash lump sum but probably won't bother.
17 x seems a very low rate

JillyC8

I think the rate is awful. The company are doing ok but have struggled a bit over the years ...

I will probably leave it alone, as pointed out the fee for an advisor would
Probably more than the payout lol

cloud_dog

I got a CETV last Feb (2018), similar age and... ratio was 17.

JillyC8

Maybe it is something to do with age ... I read that they generally increase as retirement looms ... but who knows. I thought companies were trying to offload old DB commitments but it doesn’t seem that way with mine ...

MallyGirl

I am 51 and my retirement age for the DB pension is 60. I think they do want to offload people from mine but the £18k of unspecified additional benefits is too intriguing to pass up!