DB Pension transfer..a no brainer?

Malthusian

Albermarle said:

Does it really need £1.5m to have an equivalent £24k pension - presumably index linked, half pension for spouse?

On the other side of course , you can say that even being very conservative you should be able to generate an income over £30K from a DC pot of nearly a Million . Some would say more would be relatively easy .

A very conservative person would stick their £1 million in cash, and after accounting for inflation, if they drew the equivalent of the DB income they would have run out in just over a couple of decades. The other thing a very conservative person might do is buy an annuity, which would leave them significantly worse off than under the DB scheme (especially given the extra LTA charge).

MSE regulars' concept of "very conservative" is different from the general population's.

Albermarle

MSE regulars' concept of "very conservative" is different from the general population's.

Fair Point !

grocerjack

Linton said:

grocerjack said:

eskbanker said:

grocerjack said:
Investment at medium risk started in July 2020 and has returned around 9% so far. That is exeptional and I know it won't return this every year

An incidental point to the thrust of the overall post, but I wouldn't describe that as exceptional - that's about 6.7% annualised growth, which isn't abnormal at all for a medium risk investment....


In terms of your initial comment about negativity to transferring, OP made an almost completely unsupported remark that it would be a no-brainer, and asked for what they might be missing, so posters have contributed factors that need to be included in the evaluation, as this board is littered with examples of posters who've been seduced by apparently huge CETVs, without being aware of how to make a realistic like-for-like comparison.

There are also many threads discussing the difficulty of obtaining an IFA recommendation or transferring against advice, which is a situation that has changed significantly since you went through the process....

Is that what they are now calling an 'insistent client' - someone who wants to transfer even if advised not to. I understand what the posters are doing, and it's fair to outline the potential pitfalls, but I do think the whole subject tends to be heavily aganst transferring out and the positives are often overlooked.

The FCA state that the default assumption should be that transfer is not recommended.  Therefore I cant see it is an appropriate role for this forum to give someone who doesnt know why they want to transfer reasons for doing so.  That they dont know is surely prima facie evidence that they should not.

In my view it is right that the whole system is heavily against transferring out.  The irreversible risk to the transferee's future is so great that the reasons for doing so should be convincing and genuine.

'Role'? The role of the forum is a balanced debate on the question. Not a one sided barrage of naysayers.My views are perfectly adequate and my transfer out secures the fund if anything happens to me and my partner, for my children. I have used reputable IFA and `transact are a very reputable fund managemengt organisation. You don't get to decide what is appropruate.

Diplodicus

The Batman of the IFA double act is currently absent.

Where is dunstonh when you need him?

Thrugelmir

Diplodicus said:

The Batman of the IFA double act is currently absent.

Where is dunstonh when you need him?

Probably taking a well earned break from the Jokers. 

Diplodicus

No doubt it is well earned. dunstomh is even an longer established  part of the MSE forum furniture than Thrugelmir.

cloud_dog

Interestingly (or perhaps not) I must have been bored over the summer and asked my DB scheme administrators for another 'indicative' CETV.  This was a follow on from my own personal great search and revelation post from a few years ago (2017/18).  The new number came back as £736k for a current £27.5k at a DoL valuation.  The projected DB pension at 65, assuming I work until 65 (which I won't) is £33k, or approx £27.5k plus £160k with PCLS (16x).  The transfer risk / reward for me is not there so these are just semi-interesting numbers TBH.

The point I was going to offer was that one of the non-financial reasons for me deciding to refrain from investigating the transfer option possibility further is that my partner would not have a scooby on how to DIY, and they would not have the confidence in knowing they were doing the right thing even if using an IFA, and I really do not want to put them in that position (trying to second guess what is the better option / have I made a mistake). So, its a guaranteed income for us. 

Diplodicus

Did you read the OP, cloud dog? 

Prism

cloud_dog said:

The point I was going to offer was that one of the non-financial reasons for me deciding to refrain from investigating the transfer option possibility further is that my partner would not have a scooby on how to DIY, and they would not have the confidence in knowing they were doing the right thing even if using an IFA, and I really do not want to put them in that position (trying to second guess what is the better option / have I made a mistake). So, its a guaranteed income for us. 

Maybe I am being a bit harsh, but looking at some of the figures from HL and II, it seems that most of their customers do not have a scooby on how to DIY either.

Diplodicus

There is a natural inclination for some of the forum's riper cheeses to protect their status - and the thousand hours they spent on here - indicating the rest need their help.