Anyone have experience of transferring out of final salary pension to an annuity and fees incurred

michaels

JoeCrystal said:

Are you sure you cannot access it earlier than 65? Generally speaking, you can draw on your DB pension scheme earlier, but it would be actuarially reduced.

Besides, the value of buying the annuity is so poor that fewer and fewer people are buying them at the moment. According to HL, a joint-life 50% 3% escalation annuity of £1,000 at the age of 60 would cost £41,893, so if you want £10,000 per year for the sake of argument, you would need to spend £418,893 to buy it. There is a reason why the DB pension scheme is so valuable in this day and age!

You will need to do a lot more research on the current pension provisions, and there are tons of threads on this forum discussing the same issues, so it would be worth your time and efforts to read them.

Do you know that your final salary pension scheme is a form of an annuity, right? The concept of transferring CETV out to buy an annuity is... bizarre. (unless the CETV is so generous that you can buy a better annuity on the market or other factors which increase the annuity such as serious ill health and so on).

It is also worth checking your state pension forecast as well.

The pension is mentioned as being RPI indexed so needs to be compared to equivalent.