Opinions on CETV ?

Tony4625

I recently asked for a CETV on a !!!!!!  I was in for 19 years I left the company in 2007 and  am seriously thinking of transferring out for certain reasons . I am 55  and know this should be a last resort but needs must ,variety of reasons in last year . I have a recent CETV (Barnett waddenham)of £360000  .The fig below of £11861 a year was a recalculation in 2014 apparently. The £9531.79 fig has been the figure since I left and on every statement they send   Also have an estimated fig of £14200 for when I reach 65 . Spouse gets 50% if I die it says .Does the figure seem fair (if that’s the right term)  also would I have problems getting a FSA to take it on with current regulations . I’ve exhausted all other avenues of raising revenue . Thanks for any thoughts on this .

Tony4625

Should have read Final salary scheme ..

Dazed_and_C0nfused

I’ve exhausted all other avenues of raising revenue 

The CETV multiple doesn't seem overly generous and the comment above suggests you will not have the money, or at least not all of it, available to provide for your retirement.

This DB pension and likely State Pension of £9k would be a great foundation for most people.

What other pension provision do you have?

Tony4625

Thanks for reply , apart from state pension this is it , wife has hers but untouchable right now  ,I have my house ( if I can keep it ) the tax free lump sum would be enough to clear my mortgage and secure my family’s future. The rest would be invested somewhere obviously not giving me the benefits of the FSS scheme but needs must as all revenue has gone and other reasons.

garmeg

How about an early retirement quote with a PCLS. The lump sum on early retirement could be about £50k.

Worth investigating?

Tony4625

If I’ve read your question right they said I can get £47 k  lump tax free and reduced pension of £7200 per year , which would help but not help me sleep all through the night . I take it my reduced pension would increase annually ? Just getting to grips with all the pension info .

NottinghamKnight

The difficulty is that you'd have to spend many thousands on an ifa, if you can find one, to give you the report you need. That would say it's not in your interest to transfer and you'd then struggle to find anywhere to accept a transfer in against advice. Then assuming you can get through all that you get taxed on 75% of the pension, at whatever marginal rate applies. So 40% on anything over £50k total earnings and you could be well into 45% territory on the sum you are talking about. 

Dazed_and_C0nfused

I read it as only the TFLS would be taken now with the rest staying (invested) in the DC pension.

Maybe the op could clarify this?

Tony4625

Yep ,that’s the plan.

NottinghamKnight

Right but that doesn't remove all the initial stages I posted. What is the reason for the need for the large amount now, at least that beyond the £47k that is currently on the table?

Brynsam

NottinghamKnight said:

The difficulty is that you'd have to spend many thousands on an ifa, if you can find one, to give you the report you need. That would say it's not in your interest to transfer and you'd then struggle to find anywhere to accept a transfer in against advice. 

Red herring. Any stakeholder pension would take it whatever the advice says - the law requires it to do so. OP could then transfer on to a SIPP without difficulty, as that would be a DC to DC transfer.