What's your (CETV) Number (Multiple)

Cus

mark55man said:

True but if you are comparing DB to equivalent annuities - then surely that isn't the reason that most people take transfers? It seems like most are doing it to go forward wwith the 4% safe (!) withdrawal rate from the CETV pot (especially if their multiple is big enough) or to try and free up a little more cash for legacy purposes - An annuity is more or less like for like, unless you are taking the CETV now and then delaying the annuity purchase (eg by carrying on working).

Agree, I'm not planning on using it for an annuity, but from the IFA perspective I guess they have to compare to provide suitable advice.

Whiterose23

If a CETV of £95,000 today, gives a forecast of £7100 at NRA in 10 years, is the forecast of £7100 p/a in today's money? or an assumption about the future? Sorry if this appears to be a silly question, but I find it all very confusing! If it is a forecast of the value in ten years, how would that figure be arrived at?

sandsy

Whiterose23 said:

If a CETV of £95,000 today, gives a forecast of £7100 at NRA in 10 years, is the forecast of £7100 p/a in today's money? or an assumption about the future? Sorry if this appears to be a silly question, but I find it all very confusing! If it is a forecast of the value in ten years, how would that figure be arrived at?

No, it's usually in future money terms. So if the average revaluation assumption (rate of increase between now and NRA) was, say, 3%, it would be equivalent to £5,283 in today's money.