Defined pension transfer

maddie65

xylophone said:

Thank you for your comments

There were some questions - if you were to provide the answers it would make further comment more informed.

 I have a forecast of my state pension which I got last year.

In a previous post, you mentioned £171 a week but did not answer the question as to the date when you obtained the forecast.

The full new state pension for 2021-22 was £179.60 so that you were slightly short but another year or two of contributions should bring you to the full amount.

finding it difficult to get IFA at the moment 

You could try here

https://adviserbook.co.uk/

You would tick "confirmed independent" and "pension transfer" when the menu comes up.

I know the forecast was last year when I posted on here so not sure if it's changed now 

xylophone

I know the forecast was last year when I posted on here so not sure if it's changed now 

Assuming that you were paying or credited with NI for the 21/22 year, your forecast should be updated shortly - another year or two will bring you to the full amount.

After that, although if working and earning the relevant amount you will continue to pay NI, it will not increase the pension - it will however revalue up to and beyond SPA because of the annual uprating of benefits.

xylophone

Are you still working for the company which offered the closed DB scheme and are you a member of its current DC workplace pension?

If you have left that company, are you a member of your current employer's workplace scheme (presumably DC)?

Did you check the Scheme Guide for the normal pension age of the deferred DB Scheme?

How does the pension revalue in deferment and increase in payment?

Are you being offered an actuarially reduced (for early payment) pension  from the closed DB Scheme?

maddie65

xylophone said:

Are you still working for the company which offered the closed DB scheme and are you a member of its current DC workplace pension?

If you have left that company, are you a member of your current employer's workplace scheme (presumably DC)?

Did you check the Scheme Guide for the normal pension age of the deferred DB Scheme?

How does the pension revalue in deferment and increase in payment?

Are you being offered an actuarially reduced (for early payment) pension  from the closed DB Scheme?

good evening 

1) yes i still work for the company
2) retirement age is 65 
3) in deferment my pension is increased using the uk statutory revaluation orders.i can leave the pension that i built up in the scheme.it will increase every year with inflation(up to 5% a year)before i start to recieve it   
4) do you mean before i retire

xylophone

4) do you mean before i retire

Yes - are you being offered the opportunity to take the DB pension now (while continuing to work and remain a member of the DC Scheme)?

https://forums.moneysavingexpert.com/discussion/comment/78755489/#Comment_78755489

The £71000 is what a financial advisor was quoted if I transfer then I would be out of my defined  pension scheme.with my work place. but my work place offered £9500 to date plus 1400 a year  for the rest of my life. 

This was the FA who gave you the abridged advice that a transfer was unsuitable?

maddie65

xylophone said:

4) do you mean before i retire

Yes - are you being offered the opportunity to take the DB pension now (while continuing to work and remain a member of the DC Scheme)?

https://forums.moneysavingexpert.com/discussion/comment/78755489/#Comment_78755489

The £71000 is what a financial advisor was quoted if I transfer then I would be out of my defined  pension scheme.with my work place. but my work place offered £9500 to date plus 1400 a year  for the rest of my life. 

This was the FA who gave you the abridged advice that a transfer was unsuitable?

Hi yes I can take the dB pension and remain working and I also pay into the new scheme from 2016

The offer of 9500 and then a yearly amount  was from my pension if I wanted to take it now 

I tried to take it out of my workplace that's when I had the abridged advice not sure if it makes sense 

xylophone

Then the situation is that you work for a certain company which offered a DB Pension Scheme

until 2016 when the scheme closed and the DB  pension became deferred.

Since then you have been a member of the company's DC scheme.

You are now aged 56.

You were considering transferring the deferred DB pension into a SIPP and approached an Adviser.

 Several months ago he obtained a CETV (£71,000) and gave abridged advice that a transfer was unsuitable.

The Normal Scheme Pension Age is 65.

You would be able to access the DB pension now (presumably actuarially reduced for early payment).

This would give an immediate tax free  Pension Commencement Lump Sum of  £9,500 plus an annual scheme pension of £1400 (which presumably increases in payment with some measure of inflation).

You should note that taking a scheme pension would not trigger the MPAA.

If you were to transfer to a SIPP and took any more than the PCLS from that, you would trigger the MPAA in respect of contributions to your DC pension.

maddie65

xylophone said:

Then the situation is that you work for a certain company which offered a DB Pension Scheme

until 2016 when the scheme closed and the DB  pension became deferred.

Since then you have been a member of the company's DC scheme.

You are now aged 56.

You were considering transferring the deferred DB pension into a SIPP and approached an Adviser.

 Several months ago he obtained a CETV (£71,000) and gave abridged advice that a transfer was unsuitable.

The Normal Scheme Pension Age is 65.

You would be able to access the DB pension now (presumably actuarially reduced for early payment).

This would give an immediate tax free  Pension Commencement Lump Sum of  £9,500 plus an annual scheme pension of £1400 (which presumably increases in payment with some measure of inflation).

You should note that taking a scheme pension would not trigger the MPAA.

If you were to transfer to a SIPP and took any more than the PCLS from that, you would trigger the MPAA in respect of contributions to your DC pension.

I wanted to do a drawdown which many colleagues done before the rules changed.but finding it difficult I've only one adbriged advice 

xylophone

Other posters have commented on the proposed transfer -  to sum up, if you wish to proceed, the transfer value given last year is unlikely to be still valid so you would have to request an update (and possibly pay for it - see earlier post).

You will need full (not abridged) advice. This will not be cheap.

If the full advice is the same as the abridged and you wish to proceed, you will be an insistent client - you will have noted that finding a scheme to accept the transfer will not be easy.

You intend to continue full time work up to State Pension Age?

If you take the scheme pension now, you would have a modest tax free lump sum to enjoy  -  you could contribute the monthly pension  to a SIPP with a view to its eventually being inheritable by your children (one of your reasons for wishing to transfer out).

maddie65

xylophone said:

Other posters have commented on the proposed transfer -  to sum up, if you wish to proceed, the transfer value given last year is unlikely to be still valid so you would have to request an update (and possibly pay for it - see earlier post).

You will need full (not abridged) advice. This will not be cheap.

If the full advice is the same as the abridged and you wish to proceed, you will be an insistent client - you will have noted that finding a scheme to accept the transfer will not be easy.

You intend to continue full time work up to State Pension Age?

If you take the scheme pension now, you would have a modest tax free lump sum to enjoy  -  you could contribute the monthly pension  to a SIPP with a view to its eventually being inheritable by your children (one of your reasons for wishing to transfer out).

They sent me a new transfer pack which was roughly the same amount as the last one 

If I went to full advise and they still said no can I still transfer 

I will carry on working until retirement 

If I die before retirement then my pension dies with me one of the reasons to transfer and my children get nothing if still in scheme I am a divorced person which do not intend to have a partner so I feel it's not fair to single people who want to have a better life now and invest elsewhere