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

Mick70

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

thats a great package to be fair , think most wouldn't swap it

rickenbacker330

I've just taken mine at 55 following redundancy:  £57.6k per year (RPI linked) + £315k tax fee (commute rate of 48.4). Didn't cross my mind to convert to a SIPP - much rather have the peace of mind of a steady, guaranteed income.

Albermarle

rickenbacker330 said:

I've just taken mine at 55 following redundancy:  £57.6k per year (RPI linked) + £315k tax fee (commute rate of 48.4). Didn't cross my mind to convert to a SIPP - much rather have the peace of mind of a steady, guaranteed income.

There is more to it than just foregoing the steady guaranteed income.
By taking the pension you will be around £400K over the LTA . However if you had taken a CETV transfer to a SIPP you would probably been around £1.5 million OVER the LTA , so a lot more tax to pay. 
On the other side if you had transferred you would have probably been able to leave a large legacy , free of IHT . So less tax to pay .
Swings and roundabouts as usual.

rickenbacker330

Luckily I avoided the LTA charge as I had fixed protection. But I get the point about inheritance etc.