DB Pension Transfer Out - Good Reasons?

Marcon

Albermarle said:

The cash equivalent transfer value is actually 50.91 times the "accrued pension at the date of leaving" 

Most likely your pension will have increased each year with RPI from when you left the employer, until  today.

Often this current figure is not readily available from some schemes and you need to work it out yourself. You can find RPI info on google. This is the pension figure you should use to calculate the multiple .

Might be CPI - and if there is a Guaranteed Minimum Pension element, that'll revalue at a completely different rate.

wjr4

What is the pension at the normal retirement age? That is what you should be multiplying, not the pension at date of leaving OR the pension at age 55 with early retirement factors applying. This is why people need to take financial advice. 

Albermarle

What is the pension at the normal retirement age? That is what you should be multiplying, not the pension at date of leaving OR the pension at age 55 with early retirement factors applying. 

Just to digress a little . In previous threads , some more regular posters think you can use the reduced pension paid early to calculate the multiple against the CETV at that time , which of course makes it look more attractive . Personally ( although not an expert ) I have always thought  it is the pension at NRA you should be using. ( as you say ).

jamesd

Neither is strictly correct since if you're far from NRA you'll be missing out on investment growth of the pot but including growth in the income.

In assessing whether a multiple looks good it's really best done for current income and current CETV. Or just calculate the safe withdrawal rate, since people who ask generally want to retire around now. Compare that to the actuarially reduced DB then allow for the usually better drawdown spousal and death benefits and a decent comparison is possible.

[Deleted User]

Good reasons?
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