Transfer valuation from DB Pension - advice

sandsy

Mick70 wrote: »

Do you also pay a% to the pension provider i.e Royal London, Standard Life ... as well as the % to the IFA

Mick, advisers and providers do different things for you.

A provider provides a pension for you, operates systems to be able to undertake admin such as sending you statements, does due diligence on the fund managers whose funds it offers, maintains capital so that you can be sure you're money is safe, follows instructions from you/your adviser on which funds to allocate the money to, invests any new contributions as you instruct, operates drawdown for you etc. all while staying within the legal framework set down for pensions by law, regulation, taxman etc

The ongoing advice service offered by an adviser monitors the performance of the funds previously recommended, checks on your personal circumstances - what's changed etc, reallocates/rebalances as needed if not performing as expected or if your circumstances change in a way which suggests the existing portfolio allocation is no longer right for you, advises on tax issues, advises on retirement income strategies etc. and managing withdrawals tax efficiently from pension and non-pension sources. The complexity of the service will depend on the needs of each client. But no matter what, it shouldn't cost £1000 per month like your previous adviser was about to charge you, if you transferred. You'd be cross-subsidising all his other clients and heavily contributing to his new car purchase each year.

Mick70

well, after being lead down garden path by first advisor and then finding a genuine IFA but it being too tight to meet a 3month deadline, I had to ask the pensions provider for a new CETV .
This has now arrived and is still at £1.7M (down about £15k).

So Now have 3 month window to go with either >

1. DB £27k rising with rip each year and lump sum £80k , pension spouse 60%.

2. CETV £1.7M

GSP

1. How desperate are you to stay in work? Could you work there another 5 years to 55?.
2. Depending on 1., you can do a lot more with the CETV, a lot more. With a pot that size, if you can't live on that later on even if markets turn bad, we'll all be gone such is your position.

JoeCrystal

Mick70 wrote: »

well, after being lead down garden path by first advisor and then finding a genuine IFA but it being too tight to meet a 3month deadline, I had to ask the pensions provider for a new CETV .
This has now arrived and is still at £1.7M (down about £15k).

So Now have 3 month window to go with either >

1. DB £27k rising with rip each year and lump sum £80k , pension spouse 60%.

2. CETV £1.7M

To be honest, there is nothing we can say that already been mentioned in the six pages since. One way or another, you going have to make a decision on this.

Mick70

GSP wrote: »

1. How desperate are you to stay in work? Could you work there another 5 years to 55?.
2. Depending on 1., you can do a lot more with the CETV, a lot more. With a pot that size, if you can't live on that later on even if markets turn bad, we'll all be gone such is your position.

IM nrly 50, wife 52.
DB can access at 50, DC at 55.
I want to retire about 56-58 , certainly at 58 if can, when wife turns 60. Unfortunately wife has next to no pension provision so will be relying on myself. Her work is quite tiring and manual hence I don't want her to have to work past 60.

LHW99

Mick70 wrote: »

IM nrly 50, wife 52.
DB can access at 50, DC at 55.
I want to retire about 56-58 , certainly at 58 if can, when wife turns 60. Unfortunately wife has next to no pension provision so will be relying on myself. Her work is quite tiring and manual hence I don't want her to have to work past 60.

Is she happy to manage a DC pot after you have passed (if necessary) or would she prefer the certainty of a survivor's pension?

Albermarle

Do you also pay a% to the pension provider i.e Royal London, Standard Life ... as well as the % to the IFA

Also take into account that if you were to operate the pension directly your self , you wouldn't get the same low % charge from the provider, as the IFA's have special deals.
0.4% all in is not unbeatable but it is pretty competitive .

1. DB £27k rising with rip each year and lump sum £80k , pension spouse 60%.

2. CETV £1.7M

So you are back where you started . Looks an 'oven ready' decision to me:D

Mick70

JoeCrystal wrote: »

Bear in mind that you will be paying taxes on it. So £60,000 income would only mean £48,500 net in today's term. You are still in an excellent position, though.

Ah but, rather than take 25% tax free lump sum and have to crytallise £1m to do so, would probably look to take a £52k annual pension and 25% of that would be the tax free amount

so "IF" i have worked this out right ?
yr1 - drawdown of £52k =
tax free 25% of £13,750
personal allowance , tax free again, of £12500 (i assume you still get this bit)
and then 20% tax paid on balance of (52000-13750-12500) = £5300 tax to pay
SO , in bank would receive net pension of £52,000-5300 = £46,700

would that be right ? (do you still get personal allowance , regardless of 25% tax free amount)

so £46,700 in the bank would be similar to a salary of £58k, i think.

and then keep using the 25% tax free amount that way each year until I have crytallised £1m ??

Malthusian

LHW99 wrote: »

Is she happy to manage a DC pot after you have passed (if necessary) or would she prefer the certainty of a survivor's pension?

With a CETV of 60x the annual pension, she might be able to use the remaining pot to buy an annuity if that's what she wanted.

GSP

Mick70 wrote: »

IM nrly 50, wife 52.
DB can access at 50, DC at 55.
I want to retire about 56-58 , certainly at 58 if can, when wife turns 60. Unfortunately wife has next to no pension provision so will be relying on myself. Her work is quite tiring and manual hence I don't want her to have to work past 60.

So asking again. Are you desperate to leave work, or happy in work? Working to live, or live for work?
That amount of CETV money I would not worry about her pension. You would BOTH live very comfortably on yours and the whole amount is hers if you die before.
I would use your savings to part see you through if need be.