Transfer Final salary questions.

Marcon

Heisenberg01 said:

Got my CETV finally end of last week, bit under what I was expecting,448k versus 16k (ish) at 60.

Still can't make up my mind!

If you've not yet found an IFA to give the required advice, you'll probably be out of time for acceptance anyway, given that the clock is already ticking on the guarantee period. Getting through the required hoops in 3 months is a challenge, and when clients don't get off the blocks immediately, it is nigh on impossible.

Thrugelmir

Jam today or jam tomorrow. Large figures have a tendancy to be enticing. 

Albermarle

Heisenberg01 said:

Got my CETV finally end of last week, bit under what I was expecting,448k versus 16k (ish) at 60.

Still can't make up my mind!

Heisenberg01 said:

Got my CETV finally end of last week, bit under what I was expecting,448k versus 16k (ish) at 60.

Still can't make up my mind!

By coincidence I had almost exactly the same offer- £447K for £16k(ish)  . However my NRA was at 65 , so from that point of view your offer your offer is worse. On the other hand my DB pension conditions - increasing with RPI ( max 5%) and two thirds spouse pension are quite good. 
I did not take it for the usual reasons but also because I already have a substantial DC pot ( the DB pension is from past employment ) so did not make sense to put all my eggs in one basket. 

Heisenberg01

I've already had a meeting with a company, the next step is to contact them when I've got my CETV.
Multiple people have gone with this company,as far as I know noone that's decided to transfer have been refused/failed.to get it done
It doesn't seem as hard a task as I expected, after reading on here.

Heisenberg01

Which if I'm being honest is making me cautious.

Thrugelmir

Albermarle said:

Heisenberg01 said:

Got my CETV finally end of last week, bit under what I was expecting,448k versus 16k (ish) at 60.

Still can't make up my mind!

Heisenberg01 said:

Got my CETV finally end of last week, bit under what I was expecting,448k versus 16k (ish) at 60.

Still can't make up my mind!

By coincidence I had almost exactly the same offer- £447K for £16k(ish)  . However my NRA was at 65 , so from that point of view your offer your offer is worse. On the other hand my DB pension conditions - increasing with RPI ( max 5%) and two thirds spouse pension are quite good. 
I did not take it for the usual reasons but also because I already have a substantial DC pot ( the DB pension is from past employment ) so did not make sense to put all my eggs in one basket. 

RPI linkage is a usefull insurance in times of potentially poorly performing markets and a risk of inflationary pressures. 

shinytop

I had a CETV with the same multiple as yours.  Annual pension now of X vs CETV of 28 times X.  I did not take it.  My circumstances are different though, I have a spouse.  However I don't think I would have taken it even if I were single. 

jimi_man

£16k a year, with 2% inflation until 88 gives just under £600k. Personally I'd want more than that to make up for the lack of security. 

£448k seems rather low. 

cloud_dog

Heisenberg01 said:

Got my CETV finally end of last week, bit under what I was expecting,448k versus 16k (ish) at 60.

Still can't make up my mind!

I really do not think the risks associated with a transfer are worth it.  Even if you take a quite simplistic financial approach to this, using a withdrawal rate of 3.5% gives you approximately..... £16k pa.

I would want a lot (really a lot) more contingency (multiple) on my side before considering a transfer.

garmeg

jimi_man said:

£16k a year, with 2% inflation until 88 gives just under £600k. Personally I'd want more than that to make up for the lack of security. 

£448k seems rather low. 

Not comparing like with like. The lump sum is now whereas the pension amount is, on average, 15 years in the future.

I agree the CETV is low. I was offered £400k for a 9k early retirement pension with an NRA of 62. I declined the offer.