Transfer valuation from DB Pension - advice

jamesd

k6chris wrote: »

Do you need more money, or would risk free income give you a more peaceful retirement?

Also who for and when:

1. mixed drawdown suggests three times the spousal pension, more in average or better. And over time much of this - say to DB equivalence - could be made guaranteed
2. mixed drawdown is likely to make care funding easy

The ability to do state pension deferring and annuity buying makes a mixed drawdown approach very flexible. On the spouse side it'd be possible to consider state pension deferring for ten years then in late 70s or after first death annuity buying to get lots of guaranteed income.

Mick70

Thanks to the posters for taking time to reply , I’m still a bit confused about the LTA mechanism and impact but that’s just me (can’t do a smiley face ), some say take the transfer while some would stick with the DB and lumpsum .
Guess my next step will be to seek out an IFA , always a bit warey as unfortunately some will be looking after their own interests not the client .
I may end up posting for more advice and opinions further down the process , so apologies in advance !
Thanks again folks, great forum.
Mick

Thrugelmir

GSP wrote: »

It could be if annuity rates suddenly rise you could buy more of these and still have money left to do as you choose.

What's going to cause annuity rates to suddenly rise?

GSP

Thrugelmir wrote: »

What's going to cause annuity rates to suddenly rise?

Rates have been remarkably low for over a decade now and have not returned to their "natural" levels pre financial crisis.
May never happen but at some point something may trigger an increase in rates. Could be another 5,10, 15 years but suspect this will happen during the hopefully 30-40 years of drawdown a number of us will have.

Thrugelmir

GSP wrote: »

Rates have been remarkably low for over a decade now and have not returned to their "natural" levels pre financial crisis.

Not likely to be anytime soon either. Central Bank intervention will continue to create a false market as long it's considered neccessary to support the global financial system.

Mick70

Unsure what mean about annuity rates and their impact on the pension ?

Albermarle

Unsure what mean about annuity rates and their impact on the pension ?

There was suggestions in earlier posts that if you took the large CETV , then rather keeping it 100% invested for the next 30 years , you could use some of it to buy an annuity(s) so you would have the peace of mind of some guaranteed income ( like the DB scheme ) and still have plenty left to keep invested .

Guess my next step will be to seek out an IFA , always a bit warey as unfortunately some will be looking after their own interests not the client .

First point is that you will not be able to transfer out of the DB scheme , without paying for detailed financial advice from an IFA with the necessary qualifications ( and it might not be that easy to find one ) So if you are contemplating taking the CETV then you have no choice legally to do otherwise.

Malthusian

Mick70 wrote: »

Guess my next step will be to seek out an IFA , always a bit warey as unfortunately some will be looking after their own interests not the client .

If this concerns you then specify that you want to work on a non-contingent charging basis. In other words, you pay them upfront for the recommendation, and they charge you the same whether they advise you to transfer or not.

Conflict of interest questions only begin to rear their head when the adviser doesn't get paid if they recommend against a transfer. (Lots of people nonetheless prefer to pay this way because they don't like paying money to be told to do nothing. Especially as it makes it more difficult to transfer if they insist on doing so against advice. But allowing them to pay this way - contingent charging - is increasingly non-U in the advice industry.)

All IFAs are looking after their own interests as are all professionals in every industry. The important bit is ensuring your interests and theirs are aligned.

GSP

First, I would have thought the IFA would have an initial high level chat with you to get some numbers, all income, inheritances, attitude to risk, etc before going any further.
From this they should be able to determine if this was going to be doable in the first instance, and good for you.

Albermarle

First, I would have thought the IFA would have an initial high level chat with you to get some numbers, all income, inheritances, attitude to risk, etc before going any further.
From this they should be able to determine if this was going to be doable in the first instance, and good for you.

Yes this would be the normal way.
However looking at the size of the CETV, there is probably only going to be one answer- that it is very doable !