Cashing in pension

magd36

To work out whether it's best to cash in a pension I would like to know the following:

How secure can I make the pension and what would be the expected interest rate after all fees are taken into account?

I presume as it's secure as can be, the interest rate would be low but predictable.

Does that make any sense?

TIA 

sheslookinhot

Doesn’t make sense to me. However, watch that a large chunk is not taken by the taxman.

Dazed_and_C0nfused

Do you mean the interest rate on any funds left after tax when taking it out of your pension and putting it in a savings account?

Andy_L

What do you mean by "cash in" a pension?

Talk or the money in it out & stick it in a savings account? A very bad idea as you will pay a huge amount of tax on it 

Dazed_and_C0nfused

It quite probably is a bad idea but we really don't know enough yet to say the op will pay a huge amount of tax on it.

dunstonh

Does that make any sense?

Why would you cash it in to put it in a savings account?  That seems a particularly strange thing to do (although some scenarios could see it making sense).  What is the justification?

magd36

Apologies. I'll try to be clearer.

I have a final salary scheme worth £X per year. I have a CTV worth £Y.

If I transferred the £Y into a private pension and wanted it to be fairly secure, I'm trying to estimate what annual interest/growth on the private pension I could expect after fees.

Based on this I'm hoping I could estimate, roughly, what age I'd have to live to for the final salary to be a better financial option than as secure a private pension you can get.

TIA

eskbanker

What do you see as the benefit of moving from DB to DC and have you tried convincing a financial adviser yet?

DairyQueen

magd36 said:

Apologies. I'll try to be clearer.

I have a final salary scheme worth £X per year. I have a CTV worth £Y.

If I transferred the £Y into a private pension and wanted it to be fairly secure, I'm trying to estimate what annual interest/growth on the private pension I could expect after fees.

Based on this I'm hoping I could estimate, roughly, what age I'd have to live to for the final salary to be a better financial option than as secure a private pension you can get.

TIA

Are you aware that your chances of transferring out of a db are next to zero unless you receive an advisor recommendation to so do, and that the assessment will likely cost several thousand regardless of the outcome?

Chances of receiving a positive recommendation are tiny unless you have reduced life expectancy (do you?). 

For most people 'playing' with the option of transferring from a DB is an academic exercise as for most people the recommendation will be 'no'.

There are no platforms (AFAIK) that will currently accept insistent clients (i.e. those who wish to transfer against IFA advice).

Given the obstacles you face against transferring your comparison analysis is moot.

Dazed_and_C0nfused

magd36 said:

Apologies. I'll try to be clearer.

I have a final salary scheme worth £X per year. I have a CTV worth £Y.

If I transferred the £Y into a private pension and wanted it to be fairly secure, I'm trying to estimate what annual interest/growth on the private pension I could expect after fees.

Based on this I'm hoping I could estimate, roughly, what age I'd have to live to for the final salary to be a better financial option than as secure a private pension you can get.

TIA

Really?

What is the inflation factor used by your final salary pension scheme?

You seem keen on security so why would you want to give up a final salary pension 🤔

Kim1965

If security is essential a db scheme is pretty safe. Besides unless you have very good reasons its expensive and very difficult to transfer.
If the cetv is above 30k you have to pay for advice, havevyou done this? What is the value of the db pension, what is the scheme retirement date and what is the cetv?