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Does a CETV value naturally increase..
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IAMIAM
Posts: 1,334 Forumite

as you age if you were part of on old defined benefit scheme now closed to new members acrueing at RPI/max 5%....based on the fact it will cost more to get the equivalent guaranteed pension as we age if we transfer out....
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No. While the fact that you are accruing additional benefits will tend to increase the CETV, there are other factors in play such as the longevity of the existing members and the investment performance of the assets (or the ability of the trustees to purchase assets that match the pension liabilities).
So while it is likely to increase year on year, it isn't guaranteed.The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.1 -
I have a CETV of 90k with a guaranteed pension of £5k per annum at age 60. I am tempted to transfer out and SIPP it but want to leave it also, if the 90k becomes 120k etc in 10 years etc. I have 20-25 years left to take it.0
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IAMIAM said:I have a CETV of 90k with a guaranteed pension of £5k per annum at age 60. I am tempted to transfer out and SIPP it but want to leave it also, if the 90k becomes 120k etc in 10 years etc. I have 20-25 years left to take it.
No harm in checking again in a few years to see if it has improved. For reference, I had an old 1k/year DB (from 65) and was offered over 50k for that last year. I was 38 at the time. That was tempting and I may revisit it in the future.1 -
Right, so if the 5k per annum in effect gives me a CETV of say 200k in 10 years plus then its worth considering...0
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Everyone has their price I guess. It would cost at least £5k for the advice to allow you to transfer out which needs to be factored in. £200k would sway many people but even then that would mean you would be giving up a guaranteed 2.5% return, largely index linked, which is attractive given current conditions.0
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IAMIAM said:Right, so if the 5k per annum in effect gives me a CETV of say 200k in 10 years plus then its worth considering...0
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No don't transfer out on that multiple, IAMIAM.
How old are you?
EDIT: Sorry, see you are early thirties.
No, leave it where it is for twenty years at least. Even if the guaranteed rises don't keep apace with the whole of the market, by the time you are 55, it can be a rock to support the riskier side of your fortune.0 -
No, mine has fluctuated in the last 3 years, however the most recent one was 55k higher than the previous year. Still not tempted to take it as the pension is 19k at 65.......0
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IAMIAM said:I have a CETV of 90k with a guaranteed pension of £5k per annum at age 60. I am tempted to transfer out and SIPP it but want to leave it also, if the 90k becomes 120k etc in 10 years etc. I have 20-25 years left to take it.0
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Lucys_Da said:IAMIAM said:I have a CETV of 90k with a guaranteed pension of £5k per annum at age 60. I am tempted to transfer out and SIPP it but want to leave it also, if the 90k becomes 120k etc in 10 years etc. I have 20-25 years left to take it.Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!2
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