DB pension transfer success?

garrob

Many thanks once again.


To answer some of your questions - No child benefit in my DB pension.


It is deffered, ceased on April 2016.


Private company, I started working for them on Sept 2000, still working them.


My wife is 11yrs younger than me.


I want to retire at 62 not 65.


Full state pension for both of us.


Hope this helps.

LHW99

So you have a number of different periods to look at:
1) 62-SPA, wife working, you not, no SP, your pensions only.
2) SPA- about (SPA + 12) wife working, you not, 1 xSP + your pensions
3) SPA +12 on - both drawing SP + other pensions


And possibly a short period between 2) and 3) where you are both retired, but your wife hasn't reached SPA.


You need to model the starting incomes in each period.


Then think what happens if either one passes away in one of those periods. DB pensions have spouse benefit that remain index linked. Would your wife be happy to manage a large DC fund?


IMO you need to plan with both sets of pensions not just yours.

Albermarle

£265 K in return for giving up a £11,600 pa pension = 23X .
On top of all the other arguments this is a relatively low X and not at all generous .

philgee

xylophone wrote: »

Remember that you will need advice from a Pension Transfer Specialist which will not be cheap.

I was quoted £3000 to do the critical yield analysis and the following advice & recommendation. Had I have gone ahead with the transfer, I was quoted 3% for the 1st £100k, 2% for the 2nd and 1% above £200k. That would have worked out at £9600 in total fees for my pot, plus then the ongoing fees. I don't know how that compares as I only spoke to one IFA.
My wife has 2 DB pensions, so we could have paid £9000 between us just for advice that could have said keep your DB pensions where they are.

garrob

Thanks once again. I was quoted £6000 for the transfer work and 1% for managing the fund, not sure about any other fees. Reading all the replies I think it makes sense to keep my DB pension and bridge the gap with my DC one. I was definitely thinking about taking a lump sum, my thinking is should anything happen to me then at least I will have got something out of it. Don't mean to sound morbid but you can't take anything for granted. Will it cost me far less to move my DC fund when the time comes?
Regards.

mgdavid

garrob wrote: »

......... Will it cost me far less to move my DC fund when the time comes?
Regards.

DC pots can be moved by you, DIY, into a SIPP or another pension plan at no cost.

Albermarle

Will it cost me far less to move my DC fund when the time comes?

If you mean access the money rather than 'move it' then there are various options and no need to pay/take any financial advice on any of them, if you do not want to