Transfer from previous to current

Dandytf

Don't have transfer value yet of previous employers pension for a small number of years.
As a general question is it advisable to transfer to current Employer's DC Auto enrolled scheme.
Previous was frozen since late '99 and it does state it grows a RPi or max 5%

xylophone

Why do you wish to transfer a deferred (not frozen) defined benefit pension to a DC arrangement?

You are aware of the requirement to obtain the advice of a pension transfer specialist if the value of the DB is greater than £30,000?

And see https://forums.moneysavingexpert.com/discussion/6053617/transfer-out-2-small-db-pots

Dandytf

xylophone wrote: »

Why do you wish to transfer a deferred (not frozen) defined benefit pension to a DC arrangement?

You are aware of the requirement to obtain the advice of a pension transfer specialist if the value of the DB is greater than £30,000?

And see https://forums.moneysavingexpert.com/discussion/6053617/transfer-out-2-small-db-pots

I could have mentioned previous is Frozen.
If I request transfer does that then have more value or is it restricted to max5% growth
I don't have any knowledge of transfer specialist -I do have a transfer tab online.

AlanP_2

From your initial description of an old pension that increases by RPI or 5% each year it sounds like you have a Defined Benefit (DB) pension.

This is very different to your current employer's Defined Contribution (DC) scheme.

A DB pension promises to pay you £x per year from retirement until you die with a spouse's pension following on from that if you have one.

Your current DC scheme builds you a pot of money that you need to invest and take your pension income from trying to not run it down to zero before you die.

In other words a DB scheme gives you guaranteed, inflation linked income in retirement with no risk or effort on your part.

It is UNLIKELY to be sensible to transfer it to your current DC scheme but without any values for the annual pension, scheme retirement age and the Cash Equivalent Transfer Value (CETV, which is the lump sum they would transfer to your DC scheme) nobody can offer sensible comments.

As xylophone referenced above - By law if the value of the DB benefits is more than £30k then you have to take advice from a suitably qualified Pension Transfer specialist before you can transfer.

They will look at your overall pension situation and the DB scheme details and make a recommendation on whether you should transfer or stay with it. In the majority of cases staying wit it is the sensible answer.

Exceptions might be if you have limited life expectancy due to illness or have alternative sources of guaranteed retirement income e.g. other DB schemes.

If you want to explore the possibility of transferring you need to get an up to date pension quote and CETV value from the scheme admin people.

Dandytf

Thanks
Lots of useful advice and some questions need answered from myself which is going to take consideration le time -maybe another day.
From my very basic knowledge prev' pension is cpi linked to Max 5%
Not sure what transfer value is though <30k -I have requested transfer value via e-mail today.
On day of leaving Nov 99. I was verbally told that the pension was being frozen.
I receive annual statements.
I have No idea if my current employers DC scheme accepts such transfers -They have a Tel helpline which could be my next step once transfer balance is known from prev'
I understand from excellent .Gov sites that I have fully paid 35 years Nat Insurance
My Gov pension 733 per month from 2040
As I have m.s. I had informed current employees of intending to retire from 55
Since reviewed mortgage today and looks like I could be working until 56 to ensure mortgage is fully paid.

Is it possible to explain what this part means please
Exceptions might be if you have limited life expectancy due to illness or have alternative sources of guaranteed retirement income e.g. other DB schemes.

Meanwhile I'll update this thread when I receive transfer balance.

Thanks all for detailed response today

xylophone

As I have m.s. I had informed current employees of intending to retire from 55

Multiple Sclerosis?

Is an ill health pension available?

My Gov pension 733 per month from 2040

£733 every four weeks? How old are you now?

Brynsam

Dandytf wrote: »

Is it possible to explain what this part means please
Exceptions might be if you have limited life expectancy due to illness or have alternative sources of guaranteed retirement income e.g. other DB schemes.

Not without knowing where it came from. Please could you give the link so someone can answer you in context?

AlanP_2

Dandytf wrote: »

Is it possible to explain what this part means please
Exceptions might be if you have limited life expectancy due to illness or have alternative sources of guaranteed retirement income e.g. other DB schemes.

They were just examples of when a transfer from a DB to a DC could make more sense.

If your had limited life expectancy, say 10 years after retiring, then the relative value of the DB pension versus the CETV would be different to somebody who could possibly be retired and drawing the DB pension for 30+ years.

Similarly if you had other DB pensions that were going to give you a good guaranteed income in retirement and this was a small pension then taking the CETV could make more sense.

Everybody's situation is different so there are no hard & fast rules.

Dandytf

xylophone wrote: »

Multiple Sclerosis?

Is an ill health pension available?

Multiple Sclerosis since late 2011/early 2012.
What is a bill health Pension
I haven't yet got to part where I can get an idea what I'll need weekly or monthly if and when I manage to retire early from 56 yrs-maybe sooner if I can manage decent mortgage overpayments.
I don't think I'l. Be driving by then and mortgage will be paid.
What I'm not certain off is if I'll get by with benefits only until 60 when 1st pension is available.

£733 every four weeks? How old are you now?

Yes that is 4 week from GoV i'm 46

£168.60 a week
£733.11 a month, £8,797.31 a year

Today trying to get an idea if it's worth pursuing transfer of prev' pension to current pension
I honestly don;t understand what an Ill Health Pension is though employers know of M.S. as I get the required workplace support, Thankfully

I'll re check todays prev' scheme as maybe it is DB
I only got info today with 2019 statement which is since viewable online

xylophone

i'm 46

You say that you have paid 35 years NI - can you explain?

An ill health pension may be paid earlier than scheme pension age and earlier than age 55 under certain circumstances.

https://www.pensionsadvisoryservice.org.uk/about-pensions/retirement-choices/ill-health-retirement

Does your state pension statement show a COPE?

Dandytf

Continues from todays prev' pension which is since closed for some time.
Standard retirement age 60
Early retirement possible if due to ill health though unlikely before 55 except in exceptional circumstances -No reduction in Value
Type CSDB