Final Salary Pension - unsure what to do!

shopping_queen_2

Hi there, 
I'm looking for some advice/thoughts please?  
I have a Final Salary pension scheme from a previous employer (Abbey now Santander). My projected benefits at age 60 (I'm currently 51) are £28,521 pa or £21,522 plus £143k tax free cash. I asked for a transfer value quote a few years ago which was c£450k - I asked for another a few weeks ago, which I've received today and the TV is £810k. 
I'm aware that best advice is generally to stick with the FS scheme, however, the TV seems good and I wonder if it would be better to transfer (although I'm aware it would need to be invested wisely and in the current climate, good returns are far from guaranteed).
I would seek advice, however, I'm scared off by the potential advice fees, which I know can be hefty (understandably) and it may result in a 'staying put' result, so I'm looking for some initial thoughts please. 
A little bit about me - I have 3 dependent children - one at Uni and the others aged 16 and 12 - so many dependent years ahead! I'm also hoping to retire no later than 60 (ideally earlier). I have MS and although I'm currently well, I'm keen to enjoy life as I have no idea what lies ahead. 
My husband and I will have some income in retirement from 2 rental properties and he will most likely work until 60 - we have a few ISAs but not a huge amount of other savings as our main investments are property. Any initial thoughts regarding whether I should pursue transfer advice?  
Many thanks in advance for any thoughts! 
 

Notepad_Phil

Does your husband have any fixed salary pensions, do you have any others? If not (and probably even if there are) then assuming that this pension has decent inflation linking and spouse provision then no way would I consider giving up those kind of guaranteed sums for the sleepless nights that you may well suffer if you had to look after that money yourself.

shopping_queen_2

No other pensions between us! Just property investments and some ISAs. Thanks for your thoughts - I suspected as much!  

Notepad_Phil

I might well consider taking the £143K for spending money, the £21K pension + state pension + your husbands state pension + £143K are a good basis for a happy retirement.

[Deleted User]

Stick with the pension. Don't transfer. Being a landlord is a completely different mindset to parlaying up a big six-figure sum in the investment world, so you are likely to need the crutch of a financial adviser. 
Three things you should know about financial advisers:
1) Their goal is not to maximise your returns but manage your expectations.
2) The legacy of their work is to finesse down to zero at the end of the life of a client.
3) Subsequently - in the field of investing - most financial advisers couldn't find the couch in your living room.

Which is not even to address the issue of self interest - theirs - in the transfer process.

OldMusicGuy

As someone that has a large DC pot as their only pension, I think you would be mad to even contemplate giving up the security of what looks like an amazing DB pension. If you are used to managing large sums invested, with all the contingent volatility and potential risk that involves, then think about it. If you are in anyway risk averse, it's madness to even think about it IMO.

I would happily swap my situation for yours in a heartbeat.

shopping_queen_2

Many thanks for your thoughts. I felt the best thing to do was to stick with the DB scheme, but just wanted some reassurance that I was doing the right thing. I've worked in FS for 30 years, but I'm clueless when it comes to my own pension! Scared of making the wrong decision. I think Notepad_Phil is right about taking the TFC - it could hopefully fund a nice holiday or two for me and the hubby once the kids are off the payroll!

Cus

Ignoring all of the valid reasons above as to why you should not transfer, it doesn't seem like a particularly good cetv either. (Based on a basic calc without knowing all the specific provisions of the DB).
 £810k now v £28.5k a year in 9 years, if you gained 3% over inflation on average per year for 9 years on the £810k you would a little over £1mn. At a conservative 3% withdrawal rate you get £33k a year. Considering the risks involved (markets could be flat across 9 years) it doesn't sound like much of a gain versus the substantial risk involved.

Albermarle

As above, although it seems a very large sum , it is not such a great offer . Often the multiple ( which is the CETV offered divided by the pension at Normal Retirement Age ) is used as a rule of thumb . Yours is below 30 and often you see 35X or 40X.
The higher the multiple the more the balance swings towards transfer , all other things being equal.
Although it does depend on the rules of the scheme. If it was not inflation linked or there was no spousal pension on your death , then a lower multiple could be expected. However inflation linking ( which is very important for you and expensive for the scheme ) and spousal benefit are more the norm.

xylophone

And remember that your DB (inflation linked) pension could be in payment for a very long time.
I knew a very senior civil servant who took his CS pension at age 60 and was still receiving it at age 95 and a teacher who was still receiving her TP  (NPA 60) in her 99th year......

Gary1984

Also be wary of taking the tax free cash if you don't need it. If you reject the TV because 30 is a poor multiplier then 20 on the tax free cash is even worse (although partially mitigated by it being tax free).