Transferring out of a defined benefit scheme and pre-requirements

NedS

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. 

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.

You know the value of the pension when it went into deferment and you know (from the scheme rules) how the value will increase annually in deferment, so it's simple enough for you to calculate the current value to determine the commutation factor. All you need from the pension administrator is the current CETV value which they have given you.

Albermarle

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 

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

From other posts , transferring a DB pension before the age of 55 seems almost impossible ( and not that easy after 55), so it is all a bit theoretical anyway .

elliottk

Albermarle 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 

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

From other posts , transferring a DB pension before the age of 55 seems almost impossible ( and not that easy after 55), so it is all a bit theoretical anyway .

Thanks and agree.  Would've been nice to have some control and option, but absolutely impossible to do anything or even discuss options. 

Thanks everyone, will park this and forget about it, maybe come back to it in a few years and perhaps things may have changed. 

dunstonh

elliottk said:

Albermarle 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 

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

From other posts , transferring a DB pension before the age of 55 seems almost impossible ( and not that easy after 55), so it is all a bit theoretical anyway .

Thanks and agree.  Would've been nice to have some control and option, but absolutely impossible to do anything or even discuss options. 

Thanks everyone, will park this and forget about it, maybe come back to it in a few years and perhaps things may have changed. 

I wouldn't count on it.   DB transfer activity is back to levels it was before the factory line companies got involved.  Recommendations to transfer are still higher than what they were in the 1990s and early 2000s.

Looking forward, the expectation is that gilt yields will rise and inflation will increase.  This will lead to CETVs falling in value and make DB transfers harder to justify.

elliottk

dunstonh said:

elliottk said:

Albermarle 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 

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

From other posts , transferring a DB pension before the age of 55 seems almost impossible ( and not that easy after 55), so it is all a bit theoretical anyway .

Thanks and agree.  Would've been nice to have some control and option, but absolutely impossible to do anything or even discuss options. 

Thanks everyone, will park this and forget about it, maybe come back to it in a few years and perhaps things may have changed. 

I wouldn't count on it.   DB transfer activity is back to levels it was before the factory line companies got involved.  Recommendations to transfer are still higher than what they were in the 1990s and early 2000s.

Looking forward, the expectation is that gilt yields will rise and inflation will increase.  This will lead to CETVs falling in value and make DB transfers harder to justify.

Well.. this is exactly my problem (and frustration).  There is good reason to pursue a transfer and the valuation at present is good, close to 40x
But... the issue is, it is absolutely IMPOSSIBLE to do anything about it.  No financial advisor wants to touch it, ones that do will only accept if pension pot is 300k, add to that the pension administrator will not provide a retirement valuation (not major issue, i can make some assumption) 
And also, i could pay financial advisor 5-10k to do all the work and if their advice is not to transfer even though it should be, i have to pay that fee and i've got nowhere.. 

So it seems everything is against you doing it.. 

So i may just be forced to watch the valuation fall and it is what it is... shame