Modest DC pension transfer options....

Wconnah

I have a DC/hybrid pension, with a CETV of around £75k

I also have a DB final salary pension also, which will pay around £5k p/a if I retire now (55), or around £6k p/a if I wait until age 60.

 

Only modest sums I know. But I am considering transferring the DC/hybrid to either a fixed term annuity, or a drawdown plan, and intend to make this last for 12 years, until the age of 67. when I will get the state pension. Should give around £5-6k p/a.

 

Overall this should give me a steady income stream of around £10k-£12k (in today’s terms) .

 

1. Does this sound like a credible plan?

2. How likely am I to get signoff from an IFA to transfer the DC ?

3. What alternatives would be worth considering?

 

TIA !

Marcon

You need to demonstrate you've received advice, not that you've necessarily followed it. The problem will be finding any IFA with the relevant permissions who is interested in doing the work, particularly for such a small transfer value. Huge risk, tiny payoff for them.

Any number of threads about DB transfers - use the 'search forum' box at the top of this page and have a look.

xylophone

I have a DC/hybrid pension,

 What does it offer if held to Scheme Pension Age? What is the DB underpin?

Had you considered taking early retirement on the DB pension - the annual payment seems much the same as would be offered by your plan for the hybrid?

Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

Wconnah

xylophone said:

I have a DC/hybrid pension,

 What does it offer if held to Scheme Pension Age? What is the DB underpin?

Had you considered taking early retirement on the DB pension - the annual payment seems much the same as would be offered by your plan for the hybrid?

Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

Thanks for replying.
The DC  offers < £1.5k p/a at normal pension age (60).
Yes I am considering taking the DB early retirement (well, semi-retirement).  In the short term, the DC provides a similar income,  but this is for 12 years only, until the state pension kicks in.
Yes I obtained a state pension forecast.