DB transfer timeline

SonOf

Even chucking it in a cash SIPP it will last at least 34 years of what the pension is saying it will payout and if we both die sooner, the kids will get it, unlike the DB where it's lost for good.

I can see that £240k / 7k gives 34 but the DB scheme wont be paying £7k flat. It increases each year. I make it 25 years assuming an annual 2.5% inflation rate.

[Deleted User]

My advice would be to decide what you want to do before or instead of hiring an adviser.

Bear in mind that the CETV is the sum the pension provider is willing to pay to offload its responsibility to your wife, and represents good business for them and unlikely to be wildly generous. If you decide not to transfer, don't kick yourselves for missing a massive opportunity. Also, decide whether it makes sense to you to wrest control of a DB pension only to hand it straight to an IFA.
If you do go ahead, be prepared for your adviser to recommend you do nothing, especially if he trousers the same fee either way. It's safer (for the adviser).
I'm afraid you just have to accept the adviser fee (ask a bunch, compare price, don't use Hargreaves Lansdown) but you don't have to accept the advice.

AJ Bell will accept a DB transfer on a negative recommendation.

Albermarle

Even chucking it in a cash SIPP it will last at least 34 years of what the pension is saying it will payout and if we both die sooner, the kids will get it, unlike the DB where it's lost for good.

As mentioned you have not taken inflation into account . To even just keep up with inflation you will need to invest the money in the SIPP. To make sure it does not run out when you are much older and/or leave some for the kids then it will have to be invested in at least medium risk funds and you will have to be careful not to take too much out each year.
Also the average life expectancy of someone who is 60 is about 85/86 for men and 87/88 for women.
That means 50% will live longer than that and the chance of one of you reaching 95 is about 20/25%
Also

Malthusian

Albermarle wrote: »

Also the average life expectancy of someone who is 60 is about 85/86 for men and 87/88 for women.
That means 50% will live longer than that and the chance of one of you reaching 95 is about 20/25%
Also

It's significantly higher than that because the survey sample used to caculate that figure includes people with terminal illnesses and health conditions the OP and his wife don't have. (Or he'd've told us.) They have a significant amount of money and the OP is able to write using a high level of spelling and grammar, which bumps up their life expectancy even further.

If the scheme actuaries were reading the OP's posts they'd be rubbing their hands in glee because the mistakes he is making (forgetting about inflation, discounting the possibility of outliving the fund, ignoring other options like whole of life insurance) is why people allow DB actuaries to buy them out for peanuts.

It might not be feasible anyway if the crazy IFA Fees I've read about are true.

Somewhere in the region of 2 - 3% of the CETV should be expected at the absolute minimum. If you're not confident that the benefits of transferring would outweigh a mere 2 - 3% upfront cost then you shouldn't do it. Nor would a reputable adviser recommend it.

john-306

Malthusian wrote: »

If the scheme actuaries were reading the OP's posts they'd be rubbing their hands in glee because the mistakes he is making (forgetting about inflation, discounting the possibility of outliving the fund, ignoring other options like whole of life insurance) is why people allow DB actuaries to buy them out for peanuts.

Thanks, but I haven't forgotten about inflation etc, just was limited replying on my phone with frozen hands inbetween working outside.


I think we're covered with other pensions and SP for both of us in 6/7 years, it would be nice to have the option to retire early before then, which I think having her CETV would allow.
But ultimately it's the wifes pension so I'll go through all the points raised and she will decide.