CETV Advice Please

Iwantmycetv

EDIT TO ORIGINAL POST

I have been talking about the CETV because that was what was discussed as part of the divorce but I have been quoted a formal transfer value from the DB scheme since then which is of similar value so even if the CETV was only for divorce purposes I've still got a transfer amount that I can't get transferred.

2nd_time_buyer

Iwantmycetv said:

2nd_time_buyer said:

One approach would be to take a mortgage out on your property. I belief that most lenders will take a paying out DB pension and maintenance as income streams. With interest rates as low as they are now and with a long term fix to mitigate risk this could well be a better solution financially than giving up the DB pension.

I am going to look at this option although I wouldn't need to do this if I could transfer the pension with the higher value.

Whether this is the best course or not depends strongly on what the annual pension is that you would be giving up. 

hyubh

Iwantmycetv said:

FYI, pension pot if remains in scheme is £60K, CETV is £161K .... I wanted to access the £40K lump sum and put the rest in drawdown.

I'm very confused at what the 60K is that you're using to evaluate the 161K. Can you elaborate...?

Iwantmycetv

hyubh said:

Iwantmycetv said:

FYI, pension pot if remains in scheme is £60K, CETV is £161K .... I wanted to access the £40K lump sum and put the rest in drawdown.

I'm very confused at what the 60K is that you're using to evaluate the 161K. Can you elaborate...?

So the trustees have quoted a transfer value from the scheme as £161K .... if I don't transfer out it's £60K.

The transfer value is £100K higher.

2nd_time_buyer

Iwantmycetv said:

hyubh said:

Iwantmycetv said:

FYI, pension pot if remains in scheme is £60K, CETV is £161K .... I wanted to access the £40K lump sum and put the rest in drawdown.

I'm very confused at what the 60K is that you're using to evaluate the 161K. Can you elaborate...?

So the trustees have quoted a transfer value from the scheme as £161K .... if I don't transfer out it's £60K.

The transfer value is £100K higher.

That still seems a bit strange. What is the annual payment you would receive in retirement if you stayed in the scheme?

For in-scheme valuations for the purpose of lifetime allowance the CETV is calculated at 20x the annual pension (plus any lump sum). This could imply a pension on the region of £3000 per year - if the valuation is £60k

... but then the £161k would seem very generous

Linton

Iwantmycetv said:

hyubh said:

Iwantmycetv said:

FYI, pension pot if remains in scheme is £60K, CETV is £161K .... I wanted to access the £40K lump sum and put the rest in drawdown.

I'm very confused at what the 60K is that you're using to evaluate the 161K. Can you elaborate...?

So the trustees have quoted a transfer value from the scheme as £161K .... if I don't transfer out it's £60K.

The transfer value is £100K higher.

It still is not clear what the £60K is.  If you dont transfer it when you reach the pension age you will get a guaranteed income with a possible tax free lump sum.  I cant see where the £60k comes into it.

Iwantmycetv

2nd_time_buyer said:

Iwantmycetv said:

hyubh said:

Iwantmycetv said:

FYI, pension pot if remains in scheme is £60K, CETV is £161K .... I wanted to access the £40K lump sum and put the rest in drawdown.

I'm very confused at what the 60K is that you're using to evaluate the 161K. Can you elaborate...?

So the trustees have quoted a transfer value from the scheme as £161K .... if I don't transfer out it's £60K.

The transfer value is £100K higher.

That still seems a bit strange. What is the annual payment you would receive in retirement if you stayed in the scheme?

For in-scheme valuations for the purpose of lifetime allowance it is calculated at 20x the annual pension (plus any lump sum). This could imply a pension on the region of £3000 per year - if the valuation is £60k

... but then the £161k would seem very generous

The £161K is very generous, hence I want to access it.

Annual pension is around £2200 pa 

Thrugelmir

Iwantmycetv said:

2nd_time_buyer said:

Iwantmycetv said:

hyubh said:

Iwantmycetv said:

FYI, pension pot if remains in scheme is £60K, CETV is £161K .... I wanted to access the £40K lump sum and put the rest in drawdown.

I'm very confused at what the 60K is that you're using to evaluate the 161K. Can you elaborate...?

So the trustees have quoted a transfer value from the scheme as £161K .... if I don't transfer out it's £60K.

The transfer value is £100K higher.

That still seems a bit strange. What is the annual payment you would receive in retirement if you stayed in the scheme?

For in-scheme valuations for the purpose of lifetime allowance it is calculated at 20x the annual pension (plus any lump sum). This could imply a pension on the region of £3000 per year - if the valuation is £60k

... but then the £161k would seem very generous

The £161K is very generous, hence I want to access it.

Annual pension is around £2200 pa 

Seems extremely low. Is this inflation revalued? 

2nd_time_buyer

Iwantmycetv said:

2nd_time_buyer said:

Iwantmycetv said:

hyubh said:

Iwantmycetv said:

FYI, pension pot if remains in scheme is £60K, CETV is £161K .... I wanted to access the £40K lump sum and put the rest in drawdown.

I'm very confused at what the 60K is that you're using to evaluate the 161K. Can you elaborate...?

So the trustees have quoted a transfer value from the scheme as £161K .... if I don't transfer out it's £60K.

The transfer value is £100K higher.

That still seems a bit strange. What is the annual payment you would receive in retirement if you stayed in the scheme?

For in-scheme valuations for the purpose of lifetime allowance it is calculated at 20x the annual pension (plus any lump sum). This could imply a pension on the region of £3000 per year - if the valuation is £60k

... but then the £161k would seem very generous

The £161K is very generous, hence I want to access it.

Annual pension is around £2200 pa 

At that rate, I think I would too!

(Although it almost seems too good to be true)

It seems strange when justifying a transfer the ratio of transfer value to annual pension does not seem to have a high (enough) weighting on the decision. In practice any transfer should be justifiable given a sufficiently high transfer value.

Iwantmycetv

2nd_time_buyer said:

Iwantmycetv said:

2nd_time_buyer said:

Iwantmycetv said:

hyubh said:

Iwantmycetv said:

FYI, pension pot if remains in scheme is £60K, CETV is £161K .... I wanted to access the £40K lump sum and put the rest in drawdown.

I'm very confused at what the 60K is that you're using to evaluate the 161K. Can you elaborate...?

So the trustees have quoted a transfer value from the scheme as £161K .... if I don't transfer out it's £60K.

The transfer value is £100K higher.

That still seems a bit strange. What is the annual payment you would receive in retirement if you stayed in the scheme?

For in-scheme valuations for the purpose of lifetime allowance it is calculated at 20x the annual pension (plus any lump sum). This could imply a pension on the region of £3000 per year - if the valuation is £60k

... but then the £161k would seem very generous

The £161K is very generous, hence I want to access it.

Annual pension is around £2200 pa 

At that rate, I think I would too!

(Although it almost seems too good to be true)

It seems strange when justifying a transfer the ratio of transfer value to annual pension does not seem to have a high (enough) weighting on the decision. In practice any transfer should be justifiable given a sufficiently high transfer value.

Absolutely agree but it doesn't does it ... you get what i'm saying exactly.