Cetv

mat6413

Hi all
I have been offered a transfer value of £155,000 for my defered final salary pension. Facts below:
Pension £4000 per year at 60, this will increase by cpi each until 60 then by rpi at a maximum rate of 5 percent. 
Age 40,  currently earning £23500
A member of the company's dc scheme, company pays 10% employee paids 5%. 
Morgage free, house value £120000
2 buy to let's value £110000 each, mortgage £45000. Rent £400 each. 
Wife workes part time, earning £900 per month
Would love to Finnish at 55 with around £2000 per month (or what ever our tax free allowance is then). 
Should both have full sate pensions at 68.
Thanks. 

Dox

Endless threads on this forum about just this topic, so have a look at those. Have you found an IFA willing to advise you? If you have already been issued with your CETV then you need to make sure the IFA is instructed without delay - three months might seem a long time, but the amount of ground to be covered is enormous.

Albermarle

It seems like quite a good offer but only you can decide whether you want to swop a guaranteed inflation linked income from 60 for a sum of money in a DC pension today . Probably worth while highlighting a couple of points 
The transfer process is not straightforward and is expensive .( see many other threads on the topic).
More than likely the advice will be not to transfer but you still can although the DC pensions that will accept the transfer are limited.
Basically everybody is scared that you it will go wrong and in ten years you will be suing them for allowing the transfer to happen.
This link gives the pros and cons quite nicely.https://www.royallondon.com/media/good-with-your-money-guides/five-good-reasons-to-transfer-out-of-your-company-pension-and-five-good-reasons-not-to/

dunstonh

2 buy to let's value £110000 each, mortgage £45000. Rent £400 each. 

Those are low rental yields.  Why do you keep them?    Under 5% and you should be looking at alternatives.

mat6413

Thanks for the replies so far, I am waiting for the adviser to get back to me regarding the transfer. I know that the rental yield is low however they are good tanents and I have never had any missed rental payments or any complaints off the neighbours. 

Thrugelmir

mat6413 said:

Thanks for the replies so far, I am waiting for the adviser to get back to me regarding the transfer. I know that the rental yield is low however they are good tanents and I have never had any missed rental payments or any complaints off the neighbours. 

What's to say that one of the tenants won't struggle in the current economic climate? It's tomorrow that matters not yesterday. 

mat6413

There is no guarantee that they won't struggle, we will cross that bridge if it comes. 

Marcon

mat6413 said:

Thanks for the replies so far, I am waiting for the adviser to get back to me regarding the transfer. I know that the rental yield is low however they are good tanents and I have never had any missed rental payments or any complaints off the neighbours. 

A good tenant isn't the same thing as a good return.

garmeg

dunstonh said:

2 buy to let's value £110000 each, mortgage £45000. Rent £400 each. 

Those are low rental yields.  Why do you keep them?    Under 5% and you should be looking at alternatives.

Could have a nasty CGT bill if he sold I suppose. Not a sector I would touch anyway, all my non pension investments are in an ISA. No tax issues. Cash in NSI index linked certificates, NSI income bonds and NSI premium bonds.