To transfer final salary pension or not?

rob3001

Thrugelmir said:

When do intend making a decision as the 3 month window must be up shortly. 

I have got two weeks. Still no closer to making a decision.  Do I want the security of a £7000 /year with £46,000 lump sum or £110,000 lump sum and then expose £330,000 to the stock market over the next 15 - 20years with the hope of being able to drawdown £20,000 / year?    All I seem to be getting told is go for the safe option. Decisions decisions!

Prism

rob3001 said:

Thrugelmir said:

When do intend making a decision as the 3 month window must be up shortly. 

I have got two weeks. Still no closer to making a decision.  Do I want the security of a £7000 /year with £46,000 lump sum or £110,000 lump sum and then expose £330,000 to the stock market over the next 15 - 20years with the hope of being able to drawdown £20,000 / year?    All I seem to be getting told is go for the safe option. Decisions decisions!

Do you have a decision to make though? I thought you said the IFA recommended not to move.

rob3001

Prism said:

rob3001 said:

Thrugelmir said:

When do intend making a decision as the 3 month window must be up shortly. 

I have got two weeks. Still no closer to making a decision.  Do I want the security of a £7000 /year with £46,000 lump sum or £110,000 lump sum and then expose £330,000 to the stock market over the next 15 - 20years with the hope of being able to drawdown £20,000 / year?    All I seem to be getting told is go for the safe option. Decisions decisions!

Do you have a decision to make though? I thought you said the IFA recommended not to move.

It is my decision at the end of the day, they have just made a recommendation.  I have other investments which have done quite well over the last 10 years, if the £330,00 did half as well over the next 15 years I would be pleased, but its the risk you take. 

Prism

rob3001 said:

Prism said:

rob3001 said:

Thrugelmir said:

When do intend making a decision as the 3 month window must be up shortly. 

I have got two weeks. Still no closer to making a decision.  Do I want the security of a £7000 /year with £46,000 lump sum or £110,000 lump sum and then expose £330,000 to the stock market over the next 15 - 20years with the hope of being able to drawdown £20,000 / year?    All I seem to be getting told is go for the safe option. Decisions decisions!

Do you have a decision to make though? I thought you said the IFA recommended not to move.

It is my decision at the end of the day, they have just made a recommendation.  I have other investments which have done quite well over the last 10 years, if the £330,00 did half as well over the next 15 years I would be pleased, but its the risk you take. 

Its usually more complex than that when transferring out of a DB pension. This will need to be done by an IFA, and they are not going to do it unless they believe its in your best interest.

Dox

elouise01296 said:

What are you planning to do it you do choose to go ahead.  I don't think you would be able to transfer to a Section 32 so I too think your minimum age for taking benefits would revert to age 55 if you transfer out of the final salary scheme.

Not if it's a block transfer and OP has already confirmed it is. Finance Act 2004 Schedule 36

Thrugelmir

rob3001 said:

Thrugelmir said:

When do intend making a decision as the 3 month window must be up shortly. 

I have got two weeks. Still no closer to making a decision.  Do I want the security of a £7000 /year with £46,000 lump sum or £110,000 lump sum and then expose £330,000 to the stock market over the next 15 - 20years with the hope of being able to drawdown £20,000 / year?    All I seem to be getting told is go for the safe option. Decisions decisions!

Perhaps a call to the trustees to see if they'll still honour the CETV might be in order. 

fizio

rob3001 said:

Thrugelmir said:

When do intend making a decision as the 3 month window must be up shortly. 

I have got two weeks. Still no closer to making a decision.  Do I want the security of a £7000 /year with £46,000 lump sum or £110,000 lump sum and then expose £330,000 to the stock market over the next 15 - 20years with the hope of being able to drawdown £20,000 / year?    All I seem to be getting told is go for the safe option. Decisions decisions!

If you are reasonabally comfortable managing an investment portfolio then it seems like a no-brainer to take the CETV. I am in a similar position (though not as good as 50x) and the only reason i haven't done it is that its puts me over LTA so much of the gains are lost if paying 55% tax and the risks are still there

TBC15

Time to let this gift horse go, you don’t appear to be the horse owning type.

rob3001

fizio said:

rob3001 said:

Thrugelmir said:

When do intend making a decision as the 3 month window must be up shortly. 

I have got two weeks. Still no closer to making a decision.  Do I want the security of a £7000 /year with £46,000 lump sum or £110,000 lump sum and then expose £330,000 to the stock market over the next 15 - 20years with the hope of being able to drawdown £20,000 / year?    All I seem to be getting told is go for the safe option. Decisions decisions!

If you are reasonabally comfortable managing an investment portfolio then it seems like a no-brainer to take the CETV. I am in a similar position (though not as good as 50x) and the only reason i haven't done it is that its puts me over LTA so much of the gains are lost if paying 55% tax and the risks are still there

I am being advised by the experts and they are saying play safe.  If I am being honest with myself I am looking for a reason not to transfer out but I can’t find one apart from 7k (with a small increase every year) will be guaranteed for life. If I did transfer out it would probably go to the Royal London to manage

Dox

rob3001 said:

fizio said:

rob3001 said:

Thrugelmir said:

When do intend making a decision as the 3 month window must be up shortly. 

I have got two weeks. Still no closer to making a decision.  Do I want the security of a £7000 /year with £46,000 lump sum or £110,000 lump sum and then expose £330,000 to the stock market over the next 15 - 20years with the hope of being able to drawdown £20,000 / year?    All I seem to be getting told is go for the safe option. Decisions decisions!

If you are reasonabally comfortable managing an investment portfolio then it seems like a no-brainer to take the CETV. I am in a similar position (though not as good as 50x) and the only reason i haven't done it is that its puts me over LTA so much of the gains are lost if paying 55% tax and the risks are still there

I am being advised by the experts and they are saying play safe.  If I am being honest with myself I am looking for a reason not to transfer out but I can’t find one apart from 7k (with a small increase every year) will be guaranteed for life. If I did transfer out it would probably go to the Royal London to manage

Of course they are. DB transfers are as high risk as the come - for the advisers, and their PI providers. Time to think for yourself and decide what YOU want to do.