Transferring out of a defined benefit scheme and pre-requirements

elliottk

Albermarle said:

Thanks. I spoke with an IFA, they will only investigate if CETV is minimum 300k.. Maybe because their fee is % related, in anycase, makes it probably impossible for me to proceed even if value is 40x.. 

Although a high multiple obviously helps , many other factors are taken into account. For example if you had say another DB scheme/guaranteed income that would cover day to day costs , then that would help .

Are any new DC schemes only available through work schemes?  Thanks

Albermarle

elliottk said:

Albermarle said:

Thanks. I spoke with an IFA, they will only investigate if CETV is minimum 300k.. Maybe because their fee is % related, in anycase, makes it probably impossible for me to proceed even if value is 40x.. 

Although a high multiple obviously helps , many other factors are taken into account. For example if you had say another DB scheme/guaranteed income that would cover day to day costs , then that would help .

Are any new DC schemes only available through work schemes?  Thanks

Assume you mean DB schemes ( not DC ) . You can not open one yourself if that is what you are thinking .
 Even If you could then the cost would be prohibitive. 
A DB scheme needs about 30% of an employees salary to go into it to keep it afloat and the employer bears the brunt of this . Hence why so many private sector schemes have been closed down/frozen.

Marcon

elliottk said:

Albermarle said:

Thanks. I spoke with an IFA, they will only investigate if CETV is minimum 300k.. Maybe because their fee is % related, in anycase, makes it probably impossible for me to proceed even if value is 40x.. 

Although a high multiple obviously helps , many other factors are taken into account. For example if you had say another DB scheme/guaranteed income that would cover day to day costs , then that would help .

Are any new DC schemes only available through work schemes?  Thanks

No - you can set one up direct with any provider who deals directly with retail customers (i.e. not through an intermediary). Google on 'SIPP providers' and you'll get plenty of choice, or you can set up a (non-SIPP) personal pension with some insurance companies.

elliottk

Albermarle said:

elliottk said:

Thanks all.  
From my latest statement with CETV, it show's a PA value of 1.4k PA with a CETV of 83k. 
Interestingly my statement from May 2020 had a PA value of 2.2k with a CETV of 74k

I thought the PA values should increase, in any case it would seem sensible at least to look at a transfer out.  Although understand finding an IFA to do this may not be so easy. 

Thanks

That looks like a mistake unless there is something very unusual about the pension.
I would query that £1.4K pa , maybe it should be £2.4K pa 

So i finally got response from pension administrator: 

Unfortunately we are unable to provide a current pension benefit valuation at this time as you are below the age of 55. We are also unable to provide any retirement projections as we only currently offer these to a maximum of 10 years into the future and you are currently over 10 years from age 55.

Seems madness, they can provide a CETV but will not provide a PA value so i have no clue the comparison and would appear they have no intention to provide me with anything anytime soon before age 55..

What would i do in this case?

Thanks

Thrugelmir

elliottk said:

Albermarle said:

elliottk said:

Thanks all.  
From my latest statement with CETV, it show's a PA value of 1.4k PA with a CETV of 83k. 
Interestingly my statement from May 2020 had a PA value of 2.2k with a CETV of 74k

I thought the PA values should increase, in any case it would seem sensible at least to look at a transfer out.  Although understand finding an IFA to do this may not be so easy. 

Thanks

That looks like a mistake unless there is something very unusual about the pension.
I would query that £1.4K pa , maybe it should be £2.4K pa 

What would i do in this case?

 A forecast years away from retirement age is valueless. Too many variables and assumptions. Pension administration teams have more productive uses of their time than to respond to endless ad-hoc requests. The time spent has to be paid for by the sponsoring company not a free service. Every year you receive a statement with the current value in any event. 

Marcon

Thrugelmir said:

elliottk said:

Albermarle said:

elliottk said:

Thanks all.  
From my latest statement with CETV, it show's a PA value of 1.4k PA with a CETV of 83k. 
Interestingly my statement from May 2020 had a PA value of 2.2k with a CETV of 74k

I thought the PA values should increase, in any case it would seem sensible at least to look at a transfer out.  Although understand finding an IFA to do this may not be so easy. 

Thanks

That looks like a mistake unless there is something very unusual about the pension.
I would query that £1.4K pa , maybe it should be £2.4K pa 

What would i do in this case?

 A forecast years away from retirement age is valueless. Too many variables and assumptions. Pension administration teams have more productive uses of their time than to respond to endless ad-hoc requests. The time spent has to be paid for by the sponsoring company not a free service. Every year you receive a statement with the current value in any event. 

Not with a deferred DB pension. The only 'automatic communication' requirement is to send an annual summary funding statement.

elliottk

Thrugelmir said:

elliottk said:

Albermarle said:

elliottk said:

Thanks all.  
From my latest statement with CETV, it show's a PA value of 1.4k PA with a CETV of 83k. 
Interestingly my statement from May 2020 had a PA value of 2.2k with a CETV of 74k

I thought the PA values should increase, in any case it would seem sensible at least to look at a transfer out.  Although understand finding an IFA to do this may not be so easy. 

Thanks

That looks like a mistake unless there is something very unusual about the pension.
I would query that £1.4K pa , maybe it should be £2.4K pa 

What would i do in this case?

 A forecast years away from retirement age is valueless. Too many variables and assumptions. Pension administration teams have more productive uses of their time than to respond to endless ad-hoc requests. The time spent has to be paid for by the sponsoring company not a free service. Every year you receive a statement with the current value in any event. 

Don't see how your comment is any way helpful..

A CETV is pointless if there is no PA value to make a comparison.
It's a first request to the pension administrator, not an endless line of requests.

They've also stated there will be no yearly statements provided so it seems no value of the pension will be provided at all until I retire, hardly helps me make any informed decision.
So your last statement is false.

elliottk

Marcon said:

Thrugelmir said:

elliottk said:

Albermarle said:

elliottk said:

Thanks all.  
From my latest statement with CETV, it show's a PA value of 1.4k PA with a CETV of 83k. 
Interestingly my statement from May 2020 had a PA value of 2.2k with a CETV of 74k

I thought the PA values should increase, in any case it would seem sensible at least to look at a transfer out.  Although understand finding an IFA to do this may not be so easy. 

Thanks

That looks like a mistake unless there is something very unusual about the pension.
I would query that £1.4K pa , maybe it should be £2.4K pa 

What would i do in this case?

 A forecast years away from retirement age is valueless. Too many variables and assumptions. Pension administration teams have more productive uses of their time than to respond to endless ad-hoc requests. The time spent has to be paid for by the sponsoring company not a free service. Every year you receive a statement with the current value in any event. 

Not with a deferred DB pension. The only 'automatic communication' requirement is to send an annual summary funding statement.

Thank you. My point exactly.

So a CETV is provided but I have no way to compare it which is pointless..

Thrugelmir

Marcon said:

Thrugelmir said:

elliottk said:

Albermarle said:

elliottk said:

Thanks all.  
From my latest statement with CETV, it show's a PA value of 1.4k PA with a CETV of 83k. 
Interestingly my statement from May 2020 had a PA value of 2.2k with a CETV of 74k

I thought the PA values should increase, in any case it would seem sensible at least to look at a transfer out.  Although understand finding an IFA to do this may not be so easy. 

Thanks

That looks like a mistake unless there is something very unusual about the pension.
I would query that £1.4K pa , maybe it should be £2.4K pa 

What would i do in this case?

 A forecast years away from retirement age is valueless. Too many variables and assumptions. Pension administration teams have more productive uses of their time than to respond to endless ad-hoc requests. The time spent has to be paid for by the sponsoring company not a free service. Every year you receive a statement with the current value in any event. 

Not with a deferred DB pension. The only 'automatic communication' requirement is to send an annual summary funding statement.

Then I've been fortunate. May depend on who the administration is outsourced too. 

Thrugelmir

elliottk said:

Thrugelmir said:

elliottk said:

Albermarle said:

elliottk said:

Thanks all.  
From my latest statement with CETV, it show's a PA value of 1.4k PA with a CETV of 83k. 
Interestingly my statement from May 2020 had a PA value of 2.2k with a CETV of 74k

I thought the PA values should increase, in any case it would seem sensible at least to look at a transfer out.  Although understand finding an IFA to do this may not be so easy. 

Thanks

That looks like a mistake unless there is something very unusual about the pension.
I would query that £1.4K pa , maybe it should be £2.4K pa 

What would i do in this case?

 A forecast years away from retirement age is valueless. Too many variables and assumptions. Pension administration teams have more productive uses of their time than to respond to endless ad-hoc requests. The time spent has to be paid for by the sponsoring company not a free service. Every year you receive a statement with the current value in any event. 

They've also stated there will be no yearly statements provided so it seems no value of the pension will be provided at all until I retire, hardly helps me make any informed decision.

Earlier you quoted this

We are also unable to provide any retirement projections as we only currently offer these to a maximum of 10 years into the future and you are currently over 10 years from age 55.