Transfer Final salary questions. 12 May at 12:22PM in Pensions, Annuities & Retirement Planning 29 replies 1.3K views

daveyjp

If you are concerned about providing for others you need to work out what you want to provide and how it can be achieved without rushing into cashing in a pot whuch may also need to cover your living expenses for 30+ years.

It is posssible to leave money and also have your guaranteed DB income.  You have ten years to achieve it,

You also need to ensure you have informed your DB provider who any death in service payment goes to, should the worse happen.

Joey_Soap

My own personal opinion is that despite the nominally head turning amounts of money on offer, I believe the assumption should always be that transferring this kind of DB pension is a very bad idea. I suggest the OP leaves it where it is as the bedrock of his retirement income. And build on that foundation using ISAs and the SIPP + DC plan that he has. I imagine right now, there are a lot of people who transferred DB > DC in the last year and now in draw down that face a huge cut in draw down income and a large capital value drop too. Those people may not think it was such a great idea after all. Some of threm may even be forced back into part time work as a result of the latest market turbulence. I simply woudn't do it.

JS.

LHW99

You could always use some of the DB income on an insurance policy in trust to your children.

Heisenberg01

Thanks for the comments.

Just to clarify, which figure do i take as a rough figure to calculate my potential CETV?
My latest statement states "this is the pension you have built up" which is around £16000
Then it gives me a much higher figure  which "assumes i continue to be a member  of the scheme and salary remains the same".

Im certain its roughly 16kx20 as a par figure + whatever enchancements for leaving early, however a couple of people at work are clinging on to the hope its the higher figure thats quoted at NRA if the stayed in the scheme.

Anyone please clarify?

Brynsam

Heisenberg01 said:

Thanks for the comments.

Just to clarify, which figure do i take as a rough figure to calculate my potential CETV?
My latest statement states "this is the pension you have built up" which is around £16000
Then it gives me a much higher figure  which "assumes i continue to be a member  of the scheme and salary remains the same".

Im certain its roughly 16kx20 as a par figure + whatever enchancements for leaving early, however a couple of people at work are clinging on to the hope its the higher figure thats quoted at NRA if the stayed in the scheme.

Anyone please clarify?

You may be certain, but I'm afraid you are wrong. It's neither. The 20 x is only used in relation to lifetime allowance calculations. The only way to know your CETV is to request this from the scheme administrators. Bit puzzled you think it is the multiple of 20 when you say in your first post you are expecting a CETV of £500K plus. 16 x 20 = £320K!

Dox

Heisenberg01 said:

Thanks for the comments.

Just to clarify, which figure do i take as a rough figure to calculate my potential CETV?
My latest statement states "this is the pension you have built up" which is around £16000
Then it gives me a much higher figure  which "assumes i continue to be a member  of the scheme and salary remains the same".

Im certain its roughly 16kx20 as a par figure + whatever enchancements for leaving early, however a couple of people at work are clinging on to the hope its the higher figure thats quoted at NRA if the stayed in the scheme.

Anyone please clarify?

Sounds like the blind leading the blind... You've requested a CETV so why not wait for that instead of guessing?

Heisenberg01

Brynsam said:

Heisenberg01 said:

Thanks for the comments.

Just to clarify, which figure do i take as a rough figure to calculate my potential CETV?
My latest statement states "this is the pension you have built up" which is around £16000
Then it gives me a much higher figure  which "assumes i continue to be a member  of the scheme and salary remains the same".

Im certain its roughly 16kx20 as a par figure + whatever enchancements for leaving early, however a couple of people at work are clinging on to the hope its the higher figure thats quoted at NRA if the stayed in the scheme.

Anyone please clarify?

You may be certain, but I'm afraid you are wrong. It's neither. The 20 x is only used in relation to lifetime allowance calculations. The only way to know your CETV is to request this from the scheme administrators. Bit puzzled you think it is the multiple of 20 when you say in your first post you are expecting a CETV of £500K plus. 16 x 20 = £320K!

Hi, i was (probably incorrectly) assuming as a rough guide that the amount could be worked out as follows, pension earned to date at NRA x 20 was a ball park "par figure" and that the "X" figures people quote, as an example lets say 10k per annum at NRA  would be 200k CETV (IE 20x) but then people will say my CETV is 40x my pension in my example this would be around 400k.

I know very rough and dependant on a lot of factors,

I am awaiting a CETV but been a delay i think due to the high amount of employees they are having to provide final statments for.

H

Heisenberg01

Heisenberg01 said:

Brynsam said:

Heisenberg01 said:

Thanks for the comments.

Just to clarify, which figure do i take as a rough figure to calculate my potential CETV?
My latest statement states "this is the pension you have built up" which is around £16000
Then it gives me a much higher figure  which "assumes i continue to be a member  of the scheme and salary remains the same".

Im certain its roughly 16kx20 as a par figure + whatever enchancements for leaving early, however a couple of people at work are clinging on to the hope its the higher figure thats quoted at NRA if the stayed in the scheme.

Anyone please clarify?

You may be certain, but I'm afraid you are wrong. It's neither. The 20 x is only used in relation to lifetime allowance calculations. The only way to know your CETV is to request this from the scheme administrators. Bit puzzled you think it is the multiple of 20 when you say in your first post you are expecting a CETV of £500K plus. 16 x 20 = £320K!

Hi, i was (probably incorrectly) assuming as a rough guide that the amount could be worked out as follows, pension earned to date at NRA x 20 was a ball park "par figure" and that the "X" figures people quote, as an example lets say 10k per annum at NRA  would be 200k CETV (IE 20x) but then people will say my CETV is 40x my pension in my example this would be around 400k.

I know very rough and dependant on a lot of factors,

I am awaiting a CETV but been a delay i think due to the high amount of employees they are having to provide final statments for.

H

Also, the reason im expecting 500k + is from people who have allready had the CETVs, and from their built up pension to date divided by CETV is coming in at the 30-40x.

Heisenberg01

Dox said:

Heisenberg01 said:

Thanks for the comments.

Just to clarify, which figure do i take as a rough figure to calculate my potential CETV?
My latest statement states "this is the pension you have built up" which is around £16000
Then it gives me a much higher figure  which "assumes i continue to be a member  of the scheme and salary remains the same".

Im certain its roughly 16kx20 as a par figure + whatever enchancements for leaving early, however a couple of people at work are clinging on to the hope its the higher figure thats quoted at NRA if the stayed in the scheme.

Anyone please clarify?

Sounds like the blind leading the blind... You've requested a CETV so why not wait for that instead of guessing?

Righto Dad.

Heisenberg01

Ok, looking at it from another point if view, when someone says"I got a CETV of 30x" 

30x what?