to transfer or not to transfer?

alfapersius

Hi,

I have a pension with the Cadbury Mondelez Pension Fund from a previous career (over 20 yeast ago). I've just had a Transfer of Benefits statement which confirms the value and that it is a "defined benefit" scheme. My question is how can a layman (I'm in no way a financial wizard!) access whether to leave this where it is or transfer it into my current employers scheme?

My current employer is a large financial services company specialising in work place pensions as well as other investments and the transfer statement from the Cadbury fund is really quite small so I'm thinking I'd be better off transferring it and hopefully increase it's value through my current plan's performance.

I know people will probably suggest I see an IFA which is something I am planning on doing. But I'd like to have as much background knowledge as I can myself.

thanks

ewaste

What is the annual pension you would be giving up, what age is this payable from, what index linking does it have, what spousal benefits etc (We can probably answer some of this ourselves by Googling the scheme details like I'll probably do shortly )

Edited to add:- Do you have any impairment to your life expectancy, dependants e.g. partner and children to leave an inheritance to etc. 

Compare that against the CETV what does the multiple work out to be e.g. 40x annual pension. If it's under £30k you wouldn't legally need regulated advice to transfer. 

What would the CETV generate as an income on the 'open market' e.g. Safe Withdrawal Rate or, while not currently favourable, as an annuity.

Where would you transfer it to and what would it be invested in, e.g. SIPP or current workplace pension if they'd accept the transfer.

Dozens of threads to skim through on the subject and usually a few more each week. 

xylophone

I have a pension with the Cadbury Mondelez Pension Fund from a previous career (over 20 yeast ago). I've just had a Transfer of Benefits statement which confirms the value and that it is a "defined benefit" scheme. My question is how can a layman (I'm in no way a financial wizard!) access whether to leave this where it is or transfer it into my current employers scheme?

What is the transfer value?

When did you work for the company?

What did your statement of deferred benefits on leaving say?

How does the pension revalue in deferment?

And in payment?

Your current workplace scheme is a defined contribution scheme?

Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

TVAS

We would also like as much background so we can provide a comprehensive answer.

How long were you in the scheme? What was your salary at date of leaving Cadburys Montelimar.

If you are earning a much higher salary now and it is a small period of service a transfer would represent a small part of your retirement income. HOWEVER

You need to consider this it is nice to have a mixture of DB: Cadburys Montelimar and State Pension versus Workplace Pension which is DC.

You have not provided a strong reason for transfer.
You have not told us your age.
Why transfer the risk and cost from the sweetie people to yourself when you do not have a strong reason for transfer.
You have not told us the retirement age of the scheme or when you want to take benefits.   

[Deleted User]

Leave it where it is.
There is no economy of scale benefit from merging your pensions. 
You don't have to worry about the performance of those managing your DB pension; meeting  the guaranteed benefits is their headache.
For them, the CETV represents fair value for discharging their responsibilities to you.

hyubh

alfapersius said:

I have a pension with the Cadbury Mondelez Pension Fund from a previous career (over 20 yeast ago). I've just had a Transfer of Benefits statement which confirms the value and that it is a "defined benefit" scheme. My question is how can a layman (I'm in no way a financial wizard!) access whether to leave this where it is or transfer it into my current employers scheme?

My current employer is a large financial services company specialising in work place pensions as well as other investments and the transfer statement from the Cadbury fund is really quite small so I'm thinking I'd be better off transferring it and hopefully increase it's value through my current plan's performance.

Taken literally that would be a reason not to transfer out. For defined benefit, the income in retirement (+ assumptions) determines the CETV, rather than the CETV (+ assumptions) determining the income in retirement.