Transfer DC Pension to Alpha Civil Service Pension?

SteveBull_9

Hello,

First time poster here. 

Just a quick one, I am 24 years old and have collected a combine pot of circa £10.5k DC Pension throughout my current and previous employers.
I have just joined the Civil Service and have the option to transfer this £10.5k to the Civil Service Alpha Pension which I believe is a DB pension and they will provide me with a yearly amount in exchange upon retirement age.

Shall I keep this DC Pension where it is? Shall I transfer to Alpha?

Thanks in advance.

Dazed_and_C0nfused

Maybe you could tell us what your £10.5k will purchase in Alpha?

SteveBull_9

Dazed_and_C0nfused said:

Maybe you could tell us what your £10.5k will purchase in Alpha?

Awaiting quote, will provide this when I get an answer!

ljayljay

I did the same thing a number of years ago with a small transfer of £2,800 and was offered £280 p.a. which I took.

JoeCrystal

SteveBull_9 said:

Dazed_and_C0nfused said:

Maybe you could tell us what your £10.5k will purchase in Alpha?

Awaiting quote, will provide this when I get an answer!

Since you are young, be pleasantly surprised! I am all agog to see what the quote is. 

[Deleted User]

Transfer to Alpha.

Bravepants

Yes, transfer to Alpha.

As a rough estimate you can expect roughly 10% of what you transfer in, gross per year. For a better estimate you can use the Civil Service Alpha Added Pension calculator (Microsoft Excel) available for download here: https://www.civilservicepensionscheme.org.uk/members/member-calculators/

Just set the answer to the question whether you have been in the scheme over 12 months to "Yes", then select "Self and Dependants" , choose to calculate "Pension" and select "Lump Sum" for the payment. This should give you a  figure that is close and will take into account your age. Of course you can't actually buy Added Pension until you have been in the scheme for 12 months, but in this case you are just using the calculator to estimate the transfer in value of your £10,500.

morrow56

Similar to opening poster
I was 63 last month and today received my quote from Civil Service Pensions
£38,048 of HL Sipp - Will get me £2,247 a year -  in almost exactly 3 years time of Alpha Pension
Whats everyone’s thoughts please? - transfer to Alpha  or stick with HL Sipp

Apologies to SteveBull9 for jumping in on his thread

Dazed_and_C0nfused

That seems a bit less clear cut.

Headline return (ignoring the next 3 years) is 5.9% which is still not bad but if you are going to be liable to tax on it (highly likely from SPA) then it drops to 4.72%.

If you didn't pay it into Alpha what would you do with it - could it fund a couple of years of pre DB/SP retirement?

morrow56

Thanks for the reply
Not sure tbh - happy to work to SPA
dont think I can access the full 38000 at 66?

Dazed_and_C0nfused

If it's in a SIPP surely you could access it now if you wanted?

Not saying that is the best option but why do you think you couldn't?