Someone tell me this is right or wrong....

IAMIAM

25 Years away from retirement.

Have an old defined benefit pension sat waiting for me, to pay out £5k per annum at age 65.

Has a CETV value of £130k currently, was 69k five years ago. 

Transfer CETV now to a AJ Bell SIPP and invest in S&S and watch it grow much better than where it is now? 5-8% per annum for 25 years....?

Or am I a fool....

Marcon

IAMIAM said:

25 Years away from retirement.

Have an old defined benefit pension sat waiting for me, to pay out £5k per annum at age 65.

Has a CETV value of £130k currently, was 69k five years ago. 

Transfer CETV now to a AJ Bell SIPP and invest in S&S and watch it grow much better than where it is now? 5-8% per annum for 25 years....?

Or am I a fool....

You do know that AJ Bell will now only accept such a transfer with a positive recommendation from an adviser...?

IAMIAM

Correct....current DB Provider actually provides a fixed fee FA if I am wanting to move it...

Marcon

IAMIAM said:

Correct....current DB Provider actually provides a fixed fee FA if I am wanting to move it...

In that case (assuming they will give transfer advice to under-55s - and sounds as if they will?), they are the ones who can answer your question about whether you are right or wrong. Nobody here can tell you that, or ensure you fully understand your current DB scheme (e.g. £5K at retirement - does that include statutory revaluation for the next 25 years, or is that the figure when you left and/or as of now?).

IAMIAM said:

25 Years away from retirement.

Have an old defined benefit pension sat waiting for me, to pay out £5k per annum at age 65.

Has a CETV value of £130k currently, was 69k five years ago. 

Transfer CETV now to a AJ Bell SIPP and invest in S&S and watch it grow much better than where it is now? 5-8% per annum for 25 years....?

Or am I a fool....

Your transfer values seem to be jumping around a bit - a couple of weeks ago you posted https://forums.moneysavingexpert.com/discussion/6327867/pension-planning-for-60#latest:

Old DB Pension Scheme, currently guaranteed payout of £5k per annum from age 65 with a current CETV value of £175k (Was valued at 90k 5 years ago)


Getting that right is going to be rather important to an adviser!

xylophone

Correct....current DB Provider actually provides a fixed fee FA if I am wanting to move it...

But the adviser, fixed fee or not, still has to have regard to 

https://www.thepensionsregulator.gov.uk/en/document-library/scheme-management-detailed-guidance/administration-detailed-guidance/dealing-with-transfer-requests 

and may not recommend the transfer.

Without a positive recommendation, there's a long and winding road........

https://forums.moneysavingexpert.com/discussion/comment/78912402/#Comment_78912402

Dazed_and_C0nfused

Marcon said:

IAMIAM said:

Correct....current DB Provider actually provides a fixed fee FA if I am wanting to move it...

In that case (assuming they will give transfer advice to under-55s - and sounds as if they will?), they are the ones who can answer your question about whether you are right or wrong. Nobody here can tell you that, or ensure you fully understand your current DB scheme (e.g. £5K at retirement - does that include statutory revaluation for the next 25 years, or is that the figure when you left and/or as of now?).

IAMIAM said:

25 Years away from retirement.

Have an old defined benefit pension sat waiting for me, to pay out £5k per annum at age 65.

Has a CETV value of £130k currently, was 69k five years ago. 

Transfer CETV now to a AJ Bell SIPP and invest in S&S and watch it grow much better than where it is now? 5-8% per annum for 25 years....?

Or am I a fool....

Your transfer values seem to be jumping around a bit - a couple of weeks ago you posted https://forums.moneysavingexpert.com/discussion/6327867/pension-planning-for-60#latest:

Old DB Pension Scheme, currently guaranteed payout of £5k per annum from age 65 with a current CETV value of £175k (Was valued at 90k 5 years ago)


Getting that right is going to be rather important to an adviser!

If it has dropped from £175k to £130k that would be enough to put me off transferring now and forever thinking of the £45k I'd missed out on 

Terron

You are asking questions, so no you are not a fool.

To check though, you do know that the DB pension will likely grow in line with inflation up until it starts paying out? Also most will grow after then too, though if it is a private one the rise may be capped. I had one where the inflation rise before it went into payment was a fixed 7% a year, though there have been no rises since. Check the details on your DB scheme before looking to sell. 

IAMIAM

Sorry, I copied and pasted wrong figures. Its 130k currently, with a 5k payout currently.
It increases by RPI yearly, capped at 5%....

Pablo7474

That makes it around £12k per year at retirement? 

MX5huggy

I would leave it alone, £5k plus State Pension is a good base to build on 

NannaH

Anything above £100 a week guaranteed and index linked for the rest of your life has got to be worth keeping.   You would need a pot of well over £200k to get close.