DB (final salary) transfer into a SIPP is £1.9M - manage this myself or have a professional manage?

dunstonh

JonathanBFS said:

Crazy ongoing quoted, we cap out at 4750 pa

is 0.25% of the pot to be professionally managed and other services included too much?

Perhaps shop around abit further?

Its about what you would expect for a fund value that size. 

dawsonna

Thanks - good advice.  Having read this and other forums I am tending towards activating my DB scheme and just having the peace of mind and guarantee of a good income and a large tax tree cash lump sum.  My wife's DB (not accessible until she is 57 in 10 years) we may decide to SIPP instead, I think for now just having immediate cash to live is what I want.  I have a few more weeks yet.  My pension scheme has an online site where you can get a CETV estimate immediately, updated daily.  You are allowed 1 formal free CETV quote per year and after that £300 each time.  I am still an active paying in DB scheme member until 31st Dec 2020 as I dont get my redundancy until then, but after that point I can formally get the CETV value as I will be considered deferred - you cant get formal CETVs in our scheme if you are an active paying in member, only estimates via the website, which I understand are pretty damn close - its dropped by £100k in the last month.  I have until 31st March 2021 to activate the DB scheme at which point the monies are backdated to 1st Jan 21.

[Deleted User]

I would do the same as what you are planning to. Invest into a good and simple product with as few intermediaries as possible. Keep your wife’s pension as DB. 

With a portfolio this size, it could be worth spending a bit more effort on picking investments, but if you have no prior experience then just go for a one-fund solution. I would be very heavy on equity. You already have lots of fixed income lined up via your wive’s DB pension. 

Taxes will be an issue, may need to start “melting down” your SIPP.   When the portfolio size gets out of control, consider giving some away to charity.

MK62

I think the OP is currently planning to keep his DB pension.......and perhaps look at moving his wife's DB pension to a SIPP in the future.

[Deleted User]

dawsonna said:  Having read this and other forums I am tending towards activating my DB scheme and just having the peace of mind and guarantee of a good income and a large tax tree cash lump sum.  My wife's DB (not accessible until she is 57 in 10 years) we may decide to SIPP instead, I think for now just having immediate cash to live is what I want.  

That sounds like a very sensible plan, and you can still follow a different path with your other investments, with little to fear. 
Best of luck

Mick70

what is the DB pension you will receive from age 52 , if don't mind me asking, and will it rise with annual rpi ?  (i know this may well change in few years time)
I had a similar scenario a year ago

Joey_Soap

ZingPowZing said:

dawsonna said:  Having read this and other forums I am tending towards activating my DB scheme and just having the peace of mind and guarantee of a good income and a large tax tree cash lump sum.  My wife's DB (not accessible until she is 57 in 10 years) we may decide to SIPP instead, I think for now just having immediate cash to live is what I want.  

That sounds like a very sensible plan, and you can still follow a different path with your other investments, with little to fear. 
Best of luck

What ZPZ says. Good luck.

dawsonna

Mick70 said:

what is the DB pension you will receive from age 52 , if don't mind me asking, and will it rise with annual rpi ?  (i know this may well change in few years time)
I had a similar scenario a year ago

£33k per year RPI index linked until they change it.  £214k tax free cash

Albermarle

Mick70 said:

what is the DB pension you will receive from age 52 , if don't mind me asking, and will it rise with annual rpi ?  (i know this may well change in few years time)
I had a similar scenario a year ago

Yes an even bigger CETV than yours Mick, although a very similar multiple if I remember rightly  ! They are both very high CETV's for the pension to be given up, but the key is that they are both payable at a younger age than normal. 

jimi_man

dawsonna said:

Mick70 said:

what is the DB pension you will receive from age 52 , if don't mind me asking, and will it rise with annual rpi ?  (i know this may well change in few years time)
I had a similar scenario a year ago

£33k per year RPI index linked until they change it.  £214k tax free cash

Hi

Just from another users perspective. I have a DB pension of just under £31k a year (CPI) and I've been claiming that since 51 (4 years). I have to say that the feeling I get when that drops into the account every month is just sublime. No worry, no stress, it goes up with CPI every year automatically, it's guaranteed, no work required in managing it. Not that I can (or could) but there is no way that I'd swap that, even if it meant potentially getting more money in the long run.