Transferring a final salary pension.

Siharris

This has probably been asked before. Anyway I have a final salary pension and will soon be allowed to draw from it. I have been offered £35.000 + £5670 a year for life.
I've been told I could transfer it and get a bigger lump sum and a better return. I would appreciate peoples thoughts.

Notnewnotold

Siharris said:

This has probably been asked before. Anyway I have a final salary pension and will soon be allowed to draw from it. I have been offered £35.000 + £5670 a year for life.
I've been told I could transfer it and get a bigger lump sum and a better return. I would appreciate peoples thoughts.

Just once or twice 

Please do peruse this board, you will find LOTS of threads asking the same thing...

DairyQueen

Siharris said:

This has probably been asked before. 

About twice per day.

Use the search facility and you will find 100s of similar threads. 

Marcon

Siharris said:

This has probably been asked before. Anyway I have a final salary pension and will soon be allowed to draw from it. I have been offered £35.000 + £5670 a year for life.
I've been told I could transfer it and get a bigger lump sum and a better return. I would appreciate peoples thoughts.

You've been told...I'm sure you have. As others have already said, just look at the endless threads on this board to understand that you are giving up guarantees for complete uncertainty, always assuming you can find an adviser willing to give the necessary advice (expect to pay upwards of £5K for the advice).

Albermarle

Siharris said:

This has probably been asked before. Anyway I have a final salary pension and will soon be allowed to draw from it. I have been offered £35.000 + £5670 a year guaranteed for life.
I've been told I could transfer it and get a bigger lump sum and maybe get a better return. I would appreciate peoples thoughts.

Note additions in bold 

https://www.royallondon.com/media/good-with-your-money-guides/five-good-reasons-to-transfer-out-of-your-company-pension-and-five-good-reasons-not-to/

AlanP_2

Who told you?

Whether transferring it is the right thing to do is one thing, whether you have that option is another as some schemes do not allow transfers out in the 12 months leading up to Normal Pension Age / Scheme Retirement Age. Probably worth checking to see if this applies to you and your scheme.

Siharris

Thanks 
I am certainly not much of a risk taker when it comes to money. So will keep money where it is as it's guaranteed. 

AlanP_2

Siharris said:

Thanks 
I am certainly not much of a risk taker when it comes to money. So will keep money where it is as it's guaranteed. 

That could be the best financial decision you ever make.

£5670 DB plus £9140 State Pension = £14,810 a year or £1234 per month inflation linked income that just arrives in your bank each month until you pass away (and even then a surviving spouse is likeley to get ~50% of the DB until they pass away). 

soulsaver

Start by finding out what the cash equivalent transfer value is, then you can consider it.
Whether it's a good idea depends on your personal circumstances: gender, age, health, dependents, other pensions, current wealth.  It costs nothing to ask.

Scallypud

As soulsaver said find out the transfer value. 
I has a final salary worth £7900 but i recently transferred mine to the value of 245K  '
Worth thinking about

Dazed_and_C0nfused

Scallypud said:

As soulsaver said find out the transfer value. 
I has a final salary worth £7900 but i recently transferred mine to the value of 245K  '
Worth thinking about

For some yes but not for someone who describes themselves as not much of a risk taker when it comes to money.