What would make you consider DB to DC transfer

smc4761

Pablo7474 said:

Are you sure the £2500 pa is at retirement age or is this when you left the scheme? Does it contain GMP? 

Do you have a spouse or financial dependents? 

£2500 is from age 63. 

I do have a spouse but widows pension is I believe, at 50% of my £2500, so hardly enough to live on

Whereas if I took out lump sums over a period of time, the money would be sitting either in a bank account or having being spent on home improvements, bringing up the value of my home

Pablo7474

How about the GMP, does that come into payment later or is there none? 

Albermarle

smc4761 said:

Pablo7474 said:

Are you sure the £2500 pa is at retirement age or is this when you left the scheme? Does it contain GMP? 

Do you have a spouse or financial dependents? 

£2500 is from age 63. 

I do have a spouse but widows pension is I believe, at 50% of my £2500, so hardly enough to live on

Whereas if I took out lump sums over a period of time, the money would be sitting either in a bank account or having being spent on home improvements, bringing up the value of my home

Typically when you leave an employer you get a statement saying you are entitled to a pension of £x at your Normal Retirement Date of sixtysomething .
However every year from when you left the company that figure will be increased by a % due to inflation ( exact rules differ from scheme to scheme ) 
Unfortunately this new figure is often not communicated to the future pensioner .

So is the £2500 pa the figure you got when you left the company, or is it definitely an updated figure that includes all the yearly increases?
It can make a big difference when assessing a potential transfer.

MallyGirl

It is all jolly complicated.
I was always pretty sure I would transfer my small DB pension nearer the time but it has all got thrown up in the air now, and not just by the lack of providers taking insistent clients.

Until February this year I had access to a website where I could alter retirement date and tax free lump sum and see what effect that would have plus it gave me a transfer value. I also had an Under 25 Accumulated credit fund from before I was old enough to join the DB pension.
In Feb it told me that the pension was £2,004 pa at 60 (NRA) with a transfer value of £111k so a great multiplier. The under 25 fund was £25k so that was all nice and simple.

The pension admin has transferred to Barnet Waddingham and they have not managed to build a website yet  so I applied for a pension illustration which came after several weeks.
BW tell me that I will have a DB pension of £1,393 not £2,004. I have asked them to explain the discrepancy but I have to wait again. No transfer value was supplied.
The under 25 fund is now worth £28k but apparently this has a GMP of £1,964 pa at 60 (NRA) which is not covered by the value so there is now no point in transferring the bit that I thought was simple!

The numbers are small compared to my other provision so I was just going for an easier life really - plus taking advantage of a multiplier of 55x. Now there is a GMP and a change in the DB amount and I have no idea what is going on.

Albermarle

The pension admin has transferred to Barnet Waddingham and they have not managed to build a website yet   so I applied for a pension illustration which came after several weeks.
BW tell me that I will have a DB pension of £1,393 not £2,004. I have asked them to explain the discrepancy but I have to wait again. No transfer value was supplied.

Yes very frustrating dealing with pension administrator companies - they all seem very slow /unresponsive . Of course still trying to blame Covid but that sounds a bit lame now .

smc4761

Albermarle said:

smc4761 said:

Pablo7474 said:

Are you sure the £2500 pa is at retirement age or is this when you left the scheme? Does it contain GMP? 

Do you have a spouse or financial dependents? 

£2500 is from age 63. 

I do have a spouse but widows pension is I believe, at 50% of my £2500, so hardly enough to live on

Whereas if I took out lump sums over a period of time, the money would be sitting either in a bank account or having being spent on home improvements, bringing up the value of my home

Typically when you leave an employer you get a statement saying you are entitled to a pension of £x at your Normal Retirement Date of sixtysomething .
However every year from when you left the company that figure will be increased by a % due to inflation ( exact rules differ from scheme to scheme ) 
Unfortunately this new figure is often not communicated to the future pensioner .

So is the £2500 pa the figure you got when you left the company, or is it definitely an updated figure that includes all the yearly increases?
It can make a big difference when assessing a potential transfer.

The £2500 figure is the one I got a few weeks ago when I requested a CETV

smc4761

I am hoping that with my existing medical conditions that I would be able to transfer out the DB pension. OK it is not terminal but it almost certainly reduce my life expectancy

Maybe I am just being naive but it seems that there are 2 options. Transfer out of the DBS which seems to be something that many IFA are reluctant to advise.

So what financial advise am I likely to receive. Keep the DBS, oh by the way we will charge you a large sum of money for telling you not to move the DBS pension.

Or is that too simple

Albermarle

smc4761 said:

I am hoping that with my existing medical conditions that I would be able to transfer out the DB pension. OK it is not terminal but it almost certainly reduce my life expectancy

Maybe I am just being naive but it seems that there are 2 options. Transfer out of the DBS which seems to be something that many IFA are reluctant to advise.

So what financial advise am I likely to receive. Keep the DBS, oh by the way we will charge you a large sum of money for telling you not to move the DBS pension.

Or is that too simple

Not too simple but discussed at ( long ) length in numerous other threads already .

eskbanker

smc4761 said:

So what financial advise am I likely to receive. Keep the DBS, oh by the way we will charge you a large sum of money for telling you not to move the DBS pension.

Or is that too simple

You're paying an adviser to take you through a full assessment of your pension arrangements and other financial circumstances, with a deliverable outcome of a recommendation, which may or may not be to change anything.  Shop around if you're concerned about the cost....

Pablo7474

And do more reading or you could get a £5k bill and told to stay where you are. From what you have said so far it doesn’t sound you have a full grip on the pension.