Should I transfer out my OLD DB Pension?

FIRSTTIMER

I'm currently mid thirties and have an old defined benefit scheme that will pay out a projected 4.5k with a 20k lump sum at age 65 or has a CETV value of 75k that has hovered at that for last 2/3 years.

Shall I transfer out? My fund smith equity fund Sipp has increased by 20% since I took it out and I'm tempted to for further growth.....

Dazed_and_confused

How are you calculating that projection for 30 years from now?

Or do you mean it is already worth £4.5k now? If so what inflation proofing does it have?

Do you have any other DB or CARE pensions? If not it seems that the £4.5k plus £8.7k State Pension (assuming you get enough qualifying years) is a good foundation to have in place.

Albermarle

First you could search the board ( search box at the top ) for' DB pension transfer 'as the subject has been discussed many times . Usually though it is people who are older with much bigger sums involved .
One issue is that it will cost you afew grand in financial advice before you would even be allowed to transfer .

Also read this :https://www.moneyobserver.com/final-salary-pension-transfers-scenarios-when-you-should-consider-transferring

cloud_dog

FIRSTTIMER wrote: »

I'm currently mid thirties and have an old defined benefit scheme that will pay out a projected 4.5k with a 20k lump sum at age 65 or has a CETV value of 75k that has hovered at that for last 2/3 years.

Shall I transfer out? My fund smith equity fund Sipp has increased by 20% since I took it out and I'm tempted to for further growth.....

Whilst it is always very nice to see and think of having these very large numbers I would leave the DB alone and continue to build a DC pot of money. This way you will hopefully have a good portion of retirement income from a guaranteed source (inc. SP), plus the flexibilty of your DC pot. Best of both worlds.

Your CETV is not even 17 times the pension... this insufficient to mitigate the risks associated with taking the cash and managing the risks of investments. Please remember markets have been on a significant bull run forthe last 10 years. It is easy to make money in a bull run and it will not continue.

FIRSTTIMER

Thanks for this.

Novice_investor101

I'm 37 & have a DB that will pay out £3.5k from age 65 & is index linked. My SP age is currently 68, but I'm expecting it'll be 70 by the time I get there.

I'm leaving the DB alone as that & SP will form a good guaranteed base income for the years when I may no longer want to manage investments.
I'm concentrating on building a decent DC pot, LISA & stocks ISA to fund an early retirement from age 60 (or earlier).
The DB & SP mean I can enjoy my money when I'm younger & still capable, without worrying about not having any money left into very old age.

Marcon

Don't be misled by the fact your DB transfer value hasn't changed much. It may be tempting to think you can do better for yourself, but you are giving up valuable guarantees if you do transfer.

FIRSTTIMER

great everyone, thanks for this