Pensions transfer - good time?

Shocking_Blue

Dear all,

I have an old pension scheme with a transfer value of around £15,000, which I'm thinking of transferring in to my main, work-based pension. The procedure seems pretty straightforward, but my query is about the timing. Having done some internet info searching it seems that transfer values are quite high at the moment (my plan to transfer was initially started by me noticing my own transfer vales had risen noticeably since last year). It's probably a massively simplified equation, but TVs seem to have some  inverse correlation with Gilt yields, which are low at the moment.

So, it seems a good time to do this transfer, but I'm not sure of people's thoughts on which direction things might be likely to move.

Comments appreciated.

Thanks.

kinger101

Do you mean you've been given a transfer value of £15K on a defined benefit scheme?  What pension benefit are you surrendering for this sum?  And how far are you from the date at which you can draw on the pension?

To be frank, it's a fairly trivial amount if it's a DB scheme without knowing what you're giving up and when, it's not really possible to make any judgement of whether it has any chance of being worth the risk.

MarkCarnage

Without details it's impossible to know and the amounts are relatively low suggesting that the pension benefit will be too. If the pension benefit is three figures p.a. it might be worth considering, if it's into four figures (i.e. over £1,000 p.a.) it almost certainly wouldn't be. As a very, very rough 'triage'......

Shocking_Blue

Thanks.

Some specifics:

Guaranteed pension fund at assumed pension date: 12K

Amount payable on death (not guaranteed): 16K

Transfer value: £15K

My pension pa: £470

Spuse pension pa: £230

Age, mid 50s.

Yeah, just a small thing, which is why I thought it might as well get transferred across. Just not too sure on the timing, really.

Shocking_Blue

PS... if transferred, this would go into the Investment Builder side of my work pension (funds)

Albermarle

Transfer value: £15K  My pension pa: £470

A ratio of approx. 30 , which is pretty typical .
Due to the relatively small sums involved , it is not really a big issue if you transfer or not . For the same reason if you do decide to transfer , I would not worry about timing and just get on with it.

Shocking_Blue

Albermarle said:

Transfer value: £15K  My pension pa: £470

A ratio of approx. 30 , which is pretty typical .
Due to the relatively small sums involved , it is not really a big issue if you transfer or not . For the same reason if you do decide to transfer , I would not worry about timing and just get on with it.

Yep. Thanks.

MarkCarnage

I would agree - it's not a game changer, and the CETV multiple appears reasonable, but not exceptional. Probably not worth agonising over the decision for this amount, and if you want to rationalise your pensions, I would probably just get on with it. 

jamesd

You're right about gilt yields. Why not wait until a big equity market drop, then do it? Your transfer value won't fall much if at all and you can buy low after the drop.