decisions, decisions, decisions,,,,

NedS

I have a final salary pension (DB) with a firm I worked for. About a year after I left the firm wrote to all deferred scheme members offering an enhanced transfer value with the offer of the prerequisite advice from Origen. In my case Origen advised against the transfer. My SIPP provider (HL) refused the transfer based upon the negative advice I had received, although I understand some will accept so long as you've received advice.


In hindsight I'm glad I didn't transfer. I think it's important/beneficial to at least have your core essential spending in retirement covered by guaranteed fixed income (sate pension / DB pension), and then any extra you can build in DC pots to cover early retirement and/or additional non-essential spending provides a good balance.


Buying shares in Royal Dutch Shell may seem very tempting at a high dividend yield, but I can tell you I was pretty concerned about my holding in Jan2016 and whether they could continue to afford the dividend payout. Who knows what a cut in dividend at that time would have done to the share price which was already at a 7 year low. It's hard to put a price on index-linked fixed income so I would think long and hard before selling it for what seems like an attractive offer. Rhetorical questions, but why do you think they are so keen to buy you out? If they are so unwilling to take the risk as pension professionals, what makes you think you will be able to make the numbers stack up any better?

JoeCrystal

beetlebobby wrote: »

Its great everyone giving me info but i wish im a little bit more savy on pensions ,,,by the looks of it im probably better off staying put in the scheme judging what your all saying on average,, although if i took the extra money and stuck it on royal dutch or rio tinto i would get a nice divi from it,,,
Here is the link to what i received maybe that will answer a few of your questions rhm-pension-options.co.uk

I don't think you mentioned how big the transfer value as well what is the expected pension at what normal pension age is?

But, the fact you think of putting all of it into Royal Dutch Shell or Rio Tinto sounds like putting everything in one basket is why it can be a costly decision to transfer out, especially if that company goes bust.

archer123

Hindsight is a wonderful thing!
I took early retirement in the 90's and the multi-national I worked for at the time seemed very keen for me to leave their very generous final salary scheme.
They paid a financial advisor to talk me round. At that time; I was totally niave about pensions, and the advisor clearly didn't do a thorough review and checkup.
As a result I gave up a very good pension but, more importantly, gave up an AVC worth as much again.
I am now able to make the real comparisons; staying put vs what I have now.
Despite a large payment through the Pension Ombudsman scheme, I am nowhere near where I would have been
And, more importabtly I lost the security of not having to worry about where my pensions were invested, how the markets performed or anything else.
Big numbers were waved in my face. Don't be tempted without FULLY understanding what you are giving up.