What's your (CETV) Number (Multiple)

MallyGirl

My figures have gone up but the multiplier is pretty much the same as it has always been - a fairly high one at 53.9 times the annual pension. It is a fairly small value though so fees for an advisor would take a fair chunk. I am still pondering as I am generally a fan of simple and streamlined so having this small DB pension hanging around niggles me. It would just about cover the fuel bill.
Annual pension at age 60 (NRA) is £2,004 (plus an additional £116 till SPA) or I can have a lump sum of £108,000. When I last looked it was only £94k but that was early in lockdown.

shinytop

Mine was 29 times for a £25k annual pension.  I didn't even think about taking the CETV.  I think I would have thought about it had it been 40x or more but LTA would have come into play then so I don't know.

ffacoffipawb

shinytop said:

Mine was 29 times for a £25k annual pension.  I didn't even think about taking the CETV.  I think I would have thought about it had it been 40x or more but LTA would have come into play then so I don't know.

If I could go the other way and convert my SIPP to a pension at a rate of £29 for a £1 pension I would seriously consider it!

Even though it is less of an income than a theoretical safe withdrawal rate.

[Deleted User]

mark55man - As you suspect, there certainly has been an opportunity cost while your CETV has risen over the last four years. 
For the purpose of this exercise, pretend you could have transferred your DB pension into your preferred investment on the date of your last 4 CVs and see whether you would have been better off today. The answers should indicate to you whether or not you should transfer.

mark55man

MallyGirl said:

My figures have gone up but the multiplier is pretty much the same as it has always been - a fairly high one at 53.9 times the annual pension. It is a fairly small value though so fees for an advisor would take a fair chunk. I am still pondering as I am generally a fan of simple and streamlined so having this small DB pension hanging around niggles me. It would just about cover the fuel bill.
Annual pension at age 60 (NRA) is £2,004 (plus an additional £116 till SPA) or I can have a lump sum of £108,000. When I last looked it was only £94k but that was early in lockdown.

I think even if you paid £5K in fees you would still be at multiple of high forties - I think that's the sort of number that would tempt me big time.  But my feeling is high thirties would be the least I would consider, but lets see how this thread plays out - the LTA observation is a good one, as a multiple of 40 would put  me into that territory so I will be hard put to see a scenario where I might take it!!

MallyGirl

I don't intend to work long enough to hit LTA - paying in £40k a year to my pension is a relatively new thing after I realised I was behind where I needed to be. Husband might get close but he has no DB at all.

I am pretty sure it is  "I think I saw you in an ice cream parlour ..."

RIP David.

mark55man

wrt the David Bowie quote from "5 years" - you are exactly correct with respect to the lyrics - but putting "I think" in front of "I saw" means it would spill over the line in my signature I just can't allow that.  And technically I am quoting the lyrics word for word, just not all of them.

ffacoffipawb

mark55man said:

wrt the David Bowie quote from "5 years" - you are exactly correct with respect to the lyrics - but putting "I think" in front of "I saw" means it would spill over the line in my signature I just can't allow that.  And technically I am quoting the lyrics word for word, just not all of them.

"He is using all the correct words, but not necessarily in the right order."

sandsy

Multiples are quite a crude way of looking at pension transfers - it's not all about the maths. There's some people who should never take a transfer irrespective of the multiple as there's just so much else that's more relevant for them. That's why finding a good adviser is necessary - to make sure all your circumstances are considered, not just the numbers.

Cus

I had a 39 multiplier 20 years before NRA.