Pension Advice Please

xylophone

I just found a CETV calculator online that said my CETV would probably be around 21-33k.

The LGPS will calculate according to principles set out here

https://lgpslibrary.org/assets/actgui/ew/Transfers20160408.pdf

And if the value of defined benefits is over £30,000, regulated advice  is required before a transfer out.

Albermarle

Sheba42 said:

I just found a CETV calculator online that said my CETV would probably be around 21-33k.

Hmmm 🤔 so now I'm wondering if the 19k they have given me is rather low. 
I've never requested one before so I have nothing to compare it to. 

I already said this in an earlier post .

The offer of £19K looks OK but not great . The cost of providing a guaranteed income of £700 pa is more than you would normally think, assuming it will increase with inflation.

In any case it will be take it or leave it . Your choice.

Sheba42

Albermarle said:

Sheba42 said:

I just found a CETV calculator online that said my CETV would probably be around 21-33k.

Hmmm 🤔 so now I'm wondering if the 19k they have given me is rather low. 
I've never requested one before so I have nothing to compare it to. 

I already said this in an earlier post .

The offer of £19K looks OK but not great . The cost of providing a guaranteed income of £700 pa is more than you would normally think, assuming it will increase with inflation.

In any case it will be take it or leave it . Your choice.

A bit blunt .... but yes I did see your post.

I'm just thinking out loud and wondering if the CETV would be higher if I were to wait a couple of years, that's all. 

Diplodicus

Albermarle said:

Sheba42 said:

I just found a CETV calculator online that said my CETV would probably be around 21-33k.

Hmmm 🤔 so now I'm wondering if the 19k they have given me is rather low. 
I've never requested one before so I have nothing to compare it to. 

I already said this in an earlier post .

The offer of £19K looks OK but not great . The cost of providing a guaranteed income of £700 pa is more than you would normally think, assuming it will increase with inflation.

In any case it will be take it or leave it . Your choice.

AJ Bell are pretty good, in my short experience. 

Albermarle is correct in that it would cost one more than £19k to buy an annuity with the same guarantees. But you hardly need to shoot the lights out to beat the income by other means and sustain a non depleting pension value. For example, you could buy 1000 shares in BHP. Because of the tax advantages of a SIPP, you wouldn't pay any on the dividend! 

AlanP_2

Sheba42 said:

Albermarle said:

Sheba42 said:

I just found a CETV calculator online that said my CETV would probably be around 21-33k.

Hmmm 🤔 so now I'm wondering if the 19k they have given me is rather low. 
I've never requested one before so I have nothing to compare it to. 

I already said this in an earlier post .

The offer of £19K looks OK but not great . The cost of providing a guaranteed income of £700 pa is more than you would normally think, assuming it will increase with inflation.

In any case it will be take it or leave it . Your choice.

A bit blunt .... but yes I did see your post.

I'm just thinking out loud and wondering if the CETV would be higher if I were to wait a couple of years, that's all. 

I would expect the CETV to be higher as your annual pension will have increased by CPI each year. Broadly the same multiplier but against a higher pension will give a higher CETV but as inflation will have put prices up the purchasing power won't have changed much.

Sheba42

Thanks folks. I'm not sure if should cash it in just now if both a couple of you here and the calculator say it's a bit low.

I googled a bit more yesterday and from what I can gather, the nearer you are to pension age, the higher your CETV is likely to be. 
So maybe I'm jumping the gun a bit here as I'm only 56 and waiting a couple more years might be a better bet. 

Albermarle

 both a couple of you here and the calculator say it's a bit low.

Each scheme have their own way of calculating the CETV and some come out with more generous amounts than others . Yours is probably just one that is a bit less generous and that probably will not change .

As the previous poster said it probably will not make much difference waiting .

Sheba42

Albermarle said:

 both a couple of you here and the calculator say it's a bit low.

Each scheme have their own way of calculating the CETV and some come out with more generous amounts than others . Yours is probably just one that is a bit less generous and that probably will not change .

As the previous poster said it probably will not make much difference waiting .

Yeah, maybe I should just transfer it and enjoy the money, rather than worrying I might be losing a few thousand.

Can't make up my mind,  I'm an absolute nightmare when I have a decision to make ! 
Thanks for your input 😊
 

MallyGirl

Sheba42 said:

Albermarle said:

 both a couple of you here and the calculator say it's a bit low.

Each scheme have their own way of calculating the CETV and some come out with more generous amounts than others . Yours is probably just one that is a bit less generous and that probably will not change .

As the previous poster said it probably will not make much difference waiting .

Yeah, maybe I should just transfer it and enjoy the money, rather than worrying I might be losing a few thousand.

Can't make up my mind,  I'm an absolute nightmare when I have a decision to make ! 
Thanks for your input 😊
 

No one is going to tell you what to do but if this is your only pension apart from the state one then you should be worrying about losing money. While it stays in the DB pension the growth will be as per the rules (inflation based or whatever the particular scheme uses). This is safe and guaranteed. If you transfer it out and spend it as soon as you can then that nice guaranteed pension (however small) is gone. Maybe leave it to grow a bit more if you don't actually need it now?