Defined Benefit Transfer Block by IFA

Kim1965

Op, whats the annual pension at 55 with the early payment reductions?? 

Marcon

Audaxer said:

LindseyLula said:

I guess that what they are risk assessing is, if I transfer my DB before my normal retirement age 65 (for my private pensions) and 67 for state pension and then i blow/lose it all what financial position will I be in?

You do know that you will be able access your DC pensions at 55, even although the normal retirement age for them may state 65?

There's normally no right to access a DB pension before the scheme's normal pension age, so 'will' may be overstating the case. Trustee consent is almost certainly going to be needed (and almost certainly going to be granted unless the scheme's funding position is very poor).

LindseyLula

I don't want to touch my DC pensions as there isn't enough in them to warrant taking them early and being hit with a potentailly 40% reduction (4% each year x 10 years early if i retire at 55).
The only option I want to consider is using my DB pension to retire early by either transferring out or by staying in and taking a reduced pension at 55. I think the latter is what one of the posters is suggesting and so i will contact my DB pension scheme to see what options I have for taking at 55. Thanks for all of your advice, really appreciated

Thrugelmir

LindseyLula said:

I don't want to touch my DC pensions as there isn't enough in them to warrant taking them early and being hit with a potentailly 40% reduction (4% each year x 10 years early if i retire at 55).

That relates to DB not DC schemes. 

Marcon

LindseyLula said:

I don't want to touch my DC pensions as there isn't enough in them to warrant taking them early and being hit with a potentailly 40% reduction (4% each year x 10 years early if i retire at 55).
The only option I want to consider is using my DB pension to retire early by either transferring out or by staying in and taking a reduced pension at 55. I think the latter is what one of the posters is suggesting and so i will contact my DB pension scheme to see what options I have for taking at 55. Thanks for all of your advice, really appreciated

Don't forget that your DC pot will remain invested - and hopefully increasing in value - until you actually withdraw funds. Taking 4% each year for 10 years doesn't necessarily mean a 40% reduction in their value, particularly if you are able to contribute further contributions from future earnings in your new career.

Ibrahim5

I think you will have a reduced life expectancy if you keep paying IFAs £10k to ask you a few questions and say no. Enough to give you a heart attack.

cloud_dog

Thrugelmir said:

LindseyLula said:

I don't want to touch my DC pensions as there isn't enough in them to warrant taking them early and being hit with a potentailly 40% reduction (4% each year x 10 years early if i retire at 55).

That relates to DB not DC schemes. 

Well, this bit has really confused me now.

@LindseyLula are you actually saying you have DC pensions worth approx £370k, and a DB scheme?  If you do then why not draw on the DC pensions and then take the DB at the NRA (obviously this bit does depend on the reduction factors etc).  If you don't hold DC pension(s) worth approx £370k then just ignore this as I am totally confused.

LindseyLula

I too am rather confused with some of the answers.
I have DC schemes which I don't want to touc, not massive amounts in them, but I have one deferred DB scheme that I wanted to transfer out of into a SIPP (current CETV £370000). If I can just have any thoughts on the transfer of the DB scheme only (not the DC schemes) that would be appreciated. As already stated the IFAs I have spoken with seem to be indicating that a transfer for my DB won't be recommended.

Thanks

LindseyLula

And just for clarification I haven't paid any IFAs anything and won't be doing so if there is a risk that I won't be able to transfer!!!

Cheese1990

How much are we talking about in your DC pots? And what is the annual value of your DB pension?