Pension Advice needed - National Grid Defined Benefit Scheme

RoadToRiches

p00hsticks said:

If the scheme went the way of BHS the Pension Protection fund would pay out 90% of the benefit.

Do you actually have limited life expectancy ?

How would you feel if that 40x value dropped to 30x overnight when the stock markets crashed ?

Let's just say my life insurance comes at an additional premium for them to cover me so obviously they think I'm at a higher risk in the next 20 years, no one can say for certain but I don't expect I'll ever get to claim the state pension.  In terms of stock markets they go up and down all the time but in the overall scheme of things they always seem to bounce back if left alone.

AlanP_2

I think your initial question has been answered ~£5k per pot, although there are reports on here of people whio have paid less.

So, what you need to do is contact a suitably qualified IFA and find out what they would charge you for analysing, reporting on and transferring the schemes you are considering for transfer.

Whether it is suitable or sensible for you we can't answer, and to be fair you never asked, but various posters have highlighted the potential downsides and queried your approach at times. If you are in poor health, have no dependents and it is reasonable to anticipate that you will be dead before your mid-60s as you have hinted then it might make sense for you.

RoadToRiches

Exactly Alan, I now have a ball park figure to work with and can see what my options are, I'm undecided but leaning towards taking the cash value if it is what I think it may be.  But will find an IFA for this, the company are providing free independent financial adviser but doubt that would cover the transfer costs if they are £5k per fund and may be an extra.  Also come across some funds that take 1-2% of the transfer value so it's not a cheep option.. 

dunstonh

Also come across some funds that take 1-2% of the transfer value so it's not a cheep option.. 

That is rare nowadays.  However, its possible to come across many unusual things if you keep looking.    Did a little birdy tell you it?

AlanP_2

RoadToRiches said:

Exactly Alan, I now have a ball park figure to work with and can see what my options are, I'm undecided but leaning towards taking the cash value if it is what I think it may be.  But will find an IFA for this, the company are providing free independent financial adviser but doubt that would cover the transfer costs if they are £5k per fund and may be an extra.  Also come across some funds that take 1-2% of the transfer value so it's not a cheep option.. 

I have a deferred DB from a company I worked for 30 odd years ago that I will be getting a CETV for and probably transferring (no annual increase once in payment and we have very good alternative DB pensions built up since then plus healthy cash / investment pots - fortunately).

The trustees have done a deal with an advice firm and the low fee includes transfer analysis / report if required and suitable so don't discount what the employer has put in place. Find out what they will do and what their "limit" is for the fees they arer receiving. 

RoadToRiches

dunstonh said:

 Did a little birdy tell you it?

someone over at one of the investment broker platforms.

garmeg

RoadToRiches said:

dunstonh said:

 Did a little birdy tell you it?

someone over at one of the investment broker platforms.

Be careful as you may end up with an albatross around your head. 

euanlowe

I think what is going on on this thread is that most people would give their hind teeth for a DB pension. In addition to this you haven't given out much info. I worked for less than 2yrs for a university and am currently taking the cash equivalent transfer value over to Vanguard so maybe I can provide a little info. You said something about a 20/60 scheme, so say you're on £40k/yr, I'm guessing the pension is worth £8,000 a year? First things first, this will rise by a bit every year, scheme's vary but maybe CPI or 2-3%, so that's your minimum benchmark on trying to outdo it yourself. Then hopefully you will fully accrue a state pension of £175.20/wk or 9.1k a year. So already I'm guessing an income of 17k. The big problem many will face is if you don't own a house - in which case its not enough to pay rent. Only you know that. Now as others have mentioned, there's also the hope that you will now accrue some DC assets over the rest of your career.
In terms of my CETV, I had a tiny income built up in USS, and they have offered 20-23x that small amount. If they offer you 23 x £8k = £184k you should say no. That's not a good offer. I'm going to take it, but that's because people who work less than 2yrs at USS get stiffed, so separate matter. Every so often you read of people getting offered 40-50x and that is more interesting. In that circumstance you will be obliged to get an IFA anyways and I suggest you have a good read of the advice they provide. There's a real question mark over whether they will support you taking the CETV. But if they do then obviously everything is on you to save for your future. The downside is maybe you might make bad choices, the upside is no one cares more than you!

dunstonh

garmeg said:

RoadToRiches said:

dunstonh said:

 Did a little birdy tell you it?

someone over at one of the investment broker platforms.

Be careful as you may end up with an albatross around your head. 

Do you think it is flying over his head?

Dazed_and_C0nfused

I think they've probably had enough of the wise quacks.

If they perserve let's hope they use an IFA and not a FA otherwise things could turn unpheasant and they will end up being stork raven mad and be back here with tales of fowl play.