Transfer out are we missing something

german_keeper

Our figures and situation are quite similar to yours. We both have DB pensions,mine is in payment as I am partially retired and my wife's is deferred; both currently building up our DC schemes, which are in low risk investments, with a view to drawdown before SPA; both full State Pension at 67, my wife's NI record sorted, mine sorted in 3 years time.

Our plans are very similar to Gary's suggestion in the first reply to your OP. No idea whether my wife's DB pension can be transferred but not interested. We don't half sleep easy. Well maybe not but it certainly ain't our pension plans that give us sleepless nights!! 

Bhodigirl

Hi Thanks for your replies.  They are helpful and appreciated. Hubby and I now work at the same place ,I joined well after the dB closed, that’s how I know what people are doing with there pensions as everyone over the age of  55 likes to talk about it myself included.  One person I know with a pot of 400k said his  pot made 12k in the last 12 months. I am surprised how so many people are getting advice to move, there is one particular advisor who seems to have a number of clients from our place and they all seem happy. That said most of them have moved in the last 5 years and maybe not looking st the long term. Had not thought about going at 60 but now reading this it’s making me think. Both hubby and I will get full state pension. Once again thanks for taking the time to reply 

redpete

Bhodigirl said:

One person I know with a pot of 400k said his  pot made 12k in the last 12 months

As others have pointed out, what do they think today?  12k increase on 400k is 3%, the DB pension would probably have had some growth for inflation so the additional growth they are getting on the DC pot looks even worse.   I've seen 6.7% growth with my pension portfolio over the last 12 months, and that's after this week's losses.  Their 3% could easily have been wiped out with the drops this week.

Thrugelmir

Bhodigirl said:

Hi Thanks for your replies.  They are helpful and appreciated. Hubby and I now work at the same place ,I joined well after the dB closed, that’s how I know what people are doing with there pensions as everyone over the age of  55 likes to talk about it myself included.  One person I know with a pot of 400k said his  pot made 12k in the last 12 months. I am surprised how so many people are getting advice to move, there is one particular advisor who seems to have a number of clients from our place and they all seem happy. That said most of them have moved in the last 5 years and maybe not looking st the long term. Had not thought about going at 60 but now reading this it’s making me think. Both hubby and I will get full state pension. Once again thanks for taking the time to reply 

Would flag up a concern to me. The advisor will probably soon be retired and living on the Costa Blanca. Markets as this week have shown can rapidly go into decline. That £12k paper gain has most likely been wiped away this week. 

Bhodigirl

It all seems clearer now. Pensions are confusing and it’s our future financial well-being at stake .Hubby will be leaving his pension In the DB. Thank you all and we may just retire earlier than we thought, something to think about. 

ffacoffipawb

Bhodigirl said:

It all seems clearer now. Pensions are confusing and it’s our future financial well-being at stake .Hubby will be leaving his pension In the DB. Thank you all and we may just retire earlier than we thought, something to think about. 

Wise decision.

JoeCrystal

Bhodigirl said:

It all seems clearer now. Pensions are confusing and it’s our future financial well-being at stake .Hubby will be leaving his pension In the DB. Thank you all and we may just retire earlier than we thought, something to think about. 

An excellent choice! I am sure as the time goes on, you would be even more pleased that you did not transfer out, especially once we go through a proper crash. 

Albermarle

No doubt you have made a good choice, but it could still be a good idea to maximise current contributions to your DC pots, whilst you are sill working . Up to certain limits , every pound you contribute is matched by 0.25p from HMRC as tax relief . So free money that you can only make best use of whilst you are still earning. 

german_keeper

Following on from Albermarle's post, again this is what we are doing. But we are putting an extra £350 per month into my wife's DC pot. Reason is that we get the 25% tax relief whereas savings accounts pay a pittance in interest. But as my income in retirement will already be above the Personal Tax Allowance I would pay 20% tax on drawdown. My wife's DB pension will be a few thousand pounds below PTA so she won't pay any tax on drawdown. Based on your OP this may be relevant to you.

Bravepants

I'm just waiting for the swathe of people who will try to claim some sort of compensation for having been "mis-sold" a DB pension buy-out! This week's correction is just the sort of event that would trigger it!