DB transfers - fixed fee

Wilbur63

Original Poster here - let me clarify.  To put it simply, retaining a £700pm pension ( and only £600pm for my widow ) or taking the transfer value of £600,000 into a SIPP is the choice here.  I see little incentive to keeping the DB in place. With no children to inherit, it makes more sense to use a SIPP and drawdown as slowly or as quickly as I see fit.  Capital preservation is not the first priority. Flexibility is the goal.  All I need is fixed fee IFA advice to sanity check the process for any unintended consequences and sign it off for a reasonable fee.  That seems easier said, then done.  

Silvertabby

Wilbur63 said:

Original Poster here - let me clarify.  To put it simply, retaining a £700pm pension ( and only £600pm for my widow ) or taking the transfer value of £600,000 into a SIPP is the choice here.  I see little incentive to keeping the DB in place. With no children to inherit, it makes more sense to use a SIPP and drawdown as slowly or as quickly as I see fit.  Capital preservation is not the first priority. Flexibility is the goal.  All I need is fixed fee IFA advice to sanity check the process for any unintended consequences and sign it off for a reasonable fee.  That seems easier said, then done.  

Are you sure about those figures ? A CETV of £600,000 in return for a pension of £8,400 is a factor of over 70. Even at the height of the CETV boom that would have been...... incredible.

JoeCrystal

That is extraordinary high CETV of 71. It is more normal to have 20 to 25 or even worse. Is there anything special about your pension? Early retirement age? Uncapped index linking? Is it £700 per month on today term or when you left which in that case, you may need double check the amount? Is that 700 per month an error or something?

MarkCarnage

To put it simply, retaining a £700pm pension ( and only £600pm for my widow ) or taking the transfer value of £600,000 into a SIPP is the choice here.

Did you get a formal TV of £600k? And if so, when? If it was a few months ago, it'll be a fair bit less now. 

As others note, a TV multiple of over 70x is literally incredible, even with full inflation protection on the pension in payment from age 60. Multiples of the more generous ones were typically around 30x, maybe pushing 40x at peak. That was my experience  about 5 years ago. On the face of it, the numbers just don't sound right. 

xylophone

To put it simply, retaining a £700pm pension ( and only £600pm for my widow ) 

And apart from the exceptionally high CETV value, the widow's pension seems higher than would be expected (normally 50% or at most 66% in my experience).