Could anyone comment on taking a CETV who has done it??

happyandcontented

bostonerimus wrote: »

With such a big decision to make this is one of the times when financial advice is useful for many people. There are numerous, often competing, factors to consider such as life span, family circumstances, death benefits, inheritance, taxation, investment management and your retirement life style goals. However, make sure any advice is truly independent ie the person giving the advice has no vested interest in advising you one way or the other.

We have had advice, one advisor was dead against even looking at it, one was all for it, and one will go through the process but is not particularly enthusiastic. We gave them all the same details/facts. Two were independent, one was via HL.

grocerjack wrote: »

I'm similar and going through the risk process etc now. I have a pot of about £850k and my wife has around £250k from her previous employment with a local authority. If I take the 25% it would pay off our mortgage 12 years early plus our little bit of credit card debt and a loan. We'd be £1600pm better off and I'm still working and paying into a DC fund which i pay 5% salary into and the company pays 10%. I'm 7 years from state pension age as well. The house is around £550k so it would be good security as any redundancy this late in my career would probably mean looking at early retirement and maybe a part time local job. I get that stats say we all live longer, but stats don't guarantee that. The killer for me was that if my wife and me were killed tomorrow, my pension would die with me and my kids would barely see a penny as they're in their 20s and out of full time education. In a SIPP I can arrange for them to inherit the money. I've taken a bit of time to look into this, and yes there is some risk, and some costs, but you might also end up with a bigger pot if the investments work properly. And we take risks every day and mitigate them accordingly. I take the view that my SIPP will be concentrating on medium risk/return only...at my age and with potentially £620k left, plus a DC pension looking healthy I don't need to run high risk/return chances. It's an emotive subject, and each to their own, but my DB scheme was shut 10 years ago and the company are managing the deficit but not much else. The CETV value was very generous, presumably because it's one less person to worry about. I also know several friends who have done similar in their late 50s and early 60s and none regret it. I'm not recommending it, but having researched this it looks right for me. If I live to be a 100 then I might lose out, but being honest that's against the odds..and even if I do I might not care..or even know.

By the way, the criteria is quite tough and you are checked rigorously through questionnaires and interviews (at least I have been) as to whether you are advised to transfer out. It's pretty good due diligence really to ensure you're of sound mind, understand the risks and aren't being led by someone else

Good luck whatever you decide, GJ

See above as to why we are in a quandary!!

We feel exactly like you with regard to inheritability.

Like you, we have run the figures and thought about it very seriously. We are leaning towards just doing it and hoping we don't regret it.;)

Finding an advisor who is suitably qualified is tricky too, and we feel that a lot of them want to protect themselves which may cloud their judgement.

Would you mind sharing the name/location of the advisor you used? (by pm if you prefer)

Thrugelmir

happyandcontented wrote: »

Finding an advisor who is suitably qualified is tricky too, and we feel that a lot of them want to protect themselves which may cloud their judgement.

The advisors role is to protect you. A once in a lifetime judgemental call needs to be spot on. Given the scrutiny that advisors are now under goods ones will have little wish to lose their livelihood.

fjh

Took mine July 18 , cautious - aim was 3/4% , this year 6.5%(net).

+/- to the move - only time will tell if it was the right move.

john-306

happyandcontented wrote: »

We have had advice, one advisor was dead against even looking at it, one was all for it, and one will go through the process but is not particularly enthusiastic. We gave them all the same details/facts. Two were independent, one was via HL.



See above as to why we are in a quandary!!

We feel exactly like you with regard to inheritability.

Like you, we have run the figures and thought about it very seriously. We are leaning towards just doing it and hoping we don't regret it.;)

Finding an advisor who is suitably qualified is tricky too, and we feel that a lot of them want to protect themselves which may cloud their judgement.

Would you mind sharing the name/location of the advisor you used? (by pm if you prefer)

When we've been enquiring about costs for transferring a DB into a DC over the past few weeks we've had everything from 3% to 1% with tie ins for the 1% one.
Only one with a fixed fee I found was through Fidelity, £3500 plus vat, if you invest with them vat refunded, also found a £500 off voucher on their site.
It's definitely a headache.

fjh

Via a local IFA I moved for .5%

john-306

fjh wrote: »

Via a local IFA I moved for .5%

Interesting.... Who/when?
Thanks

Thrugelmir

fjh wrote: »

Took mine July 18 , cautious - aim was 3/4% , this year 6.5%(net).

+/- to the move - only time will tell if it was the right move.

Are you self managing?

fjh

Thrugelmir wrote: »

Are you self managing?

At the moment I use an IFA but not touched portfolio in 18mths I have had it.

fjh

john-306 wrote: »

Interesting.... Who/when?
Thanks

Started ‘journey’ in December 17.
If you go to smaller local IFA. And ask for a fixed price, some of the national firms wanted between 15-20k

john-306

fjh wrote: »

Started ‘journey’ in December 17.
If you go to smaller local IFA. And ask for a fixed price, some of the national firms wanted between 15-20k

Ah that was 2 years ago, things have changed since then.
I did try some smaller firms, they wanted 2.7%, 2.5%, and 2.75%.