Final salary transfer multiples

Robert_McGeddon

I would be very tempted to transfer out.

Are the scheme administrators encouraging transfers? Might they pay for an IFA review?

If you cleared £850K after costs this may well achieve in excess of £25K p.a. at a 3% inflation adjusted return. Tempting.

You seem to understand the LTA implications. You can manage this. It's not the most important consideration, IMO.

Have you a spouse/kids/dependants? Presumably the DB pension would provide for a spouse in the event of your death, but likely only at 50%. Transferring out would keep the spouse income at 100% and leave a sizable legacy for children/dependants, if you have any.

Albermarle

garmeg said:

Paddington66 said:

Albermarle said:

In this case it is a large multiple and you have to consider it . I turned down a smaller one at 32X , partly because I already had larger  DC pots and it seemed sensible to keep a mix .
 I don’t know if one can transfer a percentage

This is down to the scheme administrators . Normally it is all or nothing, but sometimes there is a possibility of a partial transfer , so best to ask. 

Thanks again.  That’s what I was thinking, I was amazed at the multiple!  At a multiple in the 30/35 range I would not be tempted as I’m sure once retired some sure income would provide less stress.  In total I have this, one other small DB pension so £21.5 plus full SP when get there in 12 years (£9k so effective total DB £30.5) and anticipate next year having between savings and DC c£400-450k (some indeterminacy around a property sale and work) which in my mind I’ve equated to a bit under  the single person Which “luxury” income £33k post tax by the time I self fund 5 years, and then fill in the gap before SP so it’s quite tight, Ie enough for expected costs (obviously no mortgage), or more specifically to £30k plus £150k reserve (health, extra holidays, property renovation) which I’ve estimated from current spending to be comfortable.

So impact of adding £100-£200k through generous multiple (or it going wrong) quite significant

i would keep the DB pension personally. By taking the CETV you are getting to LTA territory which would be a big no no to me.

This was the secondary reason why I did not take my CETV as it would have tipped me over the LTA.

jimi_man

Usually the factors for taking the CETV are things like: reduced life expectancy, pension fund in poor condition, significant other DB type pension available. I'm not sure from what you've said that any of that applies to you.