Defined benefit pension

Mousey66

I have a defined benefit pension in the Tesco scheme which closed in 2015. As it’s current transfer value is over £30,000, I have to pay for financial advice to move it to somewhere it’s more accessible to me, as I’m now 56. I don’t think I’d benefit from the lump sum and yearly pension left as it wouldn’t be very much. I would like to use some of the pension, if I can move it, to pay some off my mortgage when my fixed rate ends in April. So what I’m asking is, would this be a good reason to put to a financial adviser for them to advise I transfer the pension? I now work for the NHS and don’t plan on retiring for at least ten years so will have an NHS pension to live on by then.
So I’m very unsure whether to commit to financial advice as it’s a lot to pay, maybe not for the result I would like. 

Thanks for any advice offered, it’s much appreciated.

Albermarle

The advice would be very expensive and the recommendation to transfer may well be negative, so you would have wasted your money and time.

This subject comes up a lot. If you type 'DB Transfer ' into the search box above, you will have many hours of reading !

dunstonh

So what I’m asking is, would this be a good reason to put to a financial adviser for them to advise I transfer the pension?

You don't say what you want to use it for or what other savings, investments and pensions you have.  So, its impossible to answer without knowing that.

I now work for the NHS and don’t plan on retiring for at least ten years so will have an NHS pension to live on by then.

having a pension is one thing.   Having enough from that pension is the key thing.

CETVs have dropped by around half in the last year.   That brings it back closer to the old 1 in 10 only likely to be suitable for transfer.   So, statistically, it is unlikely

Mousey66

dunstonh said:

So what I’m asking is, would this be a good reason to put to a financial adviser for them to advise I transfer the pension?

You don't say what you want to use it for or what other savings, investments and pensions you have.  So, its impossible to answer without knowing that.

I now work for the NHS and don’t plan on retiring for at least ten years so will have an NHS pension to live on by then.

having a pension is one thing.   Having enough from that pension is the key thing.

CETVs have dropped by around half in the last year.   That brings it back closer to the old 1 in 10 only likely to be suitable for transfer.   So, statistically, it is unlikely

I will have my NHS pension and state pension, so I’m sure I’d be fine to live on them. I would also like to do some home improvements, buy a decent car, ours is very old, and use some to enable a better quality of life before we get too old.

Mousey66

So what would a FA look for to enable the transfer to go ahead? Or can I still move it if advised not to?

Albermarle

Mousey66 said:

dunstonh said:

So what I’m asking is, would this be a good reason to put to a financial adviser for them to advise I transfer the pension?

You don't say what you want to use it for or what other savings, investments and pensions you have.  So, its impossible to answer without knowing that.

I now work for the NHS and don’t plan on retiring for at least ten years so will have an NHS pension to live on by then.

having a pension is one thing.   Having enough from that pension is the key thing.

CETVs have dropped by around half in the last year.   That brings it back closer to the old 1 in 10 only likely to be suitable for transfer.   So, statistically, it is unlikely

I will have my NHS pension and state pension, so I’m sure I’d be fine to live on them. I would also like to do some home improvements, buy a decent car, ours is very old, and use some to enable a better quality of life before we get too old.

I am sure any advisor looking at your case , would only look at how much NHS pension you have built up so far. 
You could become ill/lose your job and not work again. Then you might go back to the advisor and say they should never have recommended you to transfer. It's not very likely but the advisor has to take out expensive insurance against this.
Also the fact that you want the money to fund current expenditure would count against you. 
As said there are numerous threads already on this subject......

theoretica

Have you looked into the potential of starting drawing that pension early?  Would it allow some of what you want, without expensive advice needed or likelihood of refusal?  You would need to check how it might impact the pension you are still building up...

Mousey66

theoretica said:

Have you looked into the potential of starting drawing that pension early?  Would it allow some of what you want, without expensive advice needed or likelihood of refusal?  You would need to check how it might impact the pension you are still building up...

It works out at £7,500 lump sum and about £1,200 a year. So not really enough for what I was hoping to use it for.

Mousey66

Albermarle said:

Mousey66 said:

dunstonh said:

So what I’m asking is, would this be a good reason to put to a financial adviser for them to advise I transfer the pension?

You don't say what you want to use it for or what other savings, investments and pensions you have.  So, its impossible to answer without knowing that.

I now work for the NHS and don’t plan on retiring for at least ten years so will have an NHS pension to live on by then.

having a pension is one thing.   Having enough from that pension is the key thing.

CETVs have dropped by around half in the last year.   That brings it back closer to the old 1 in 10 only likely to be suitable for transfer.   So, statistically, it is unlikely

I will have my NHS pension and state pension, so I’m sure I’d be fine to live on them. I would also like to do some home improvements, buy a decent car, ours is very old, and use some to enable a better quality of life before we get too old.

I am sure any advisor looking at your case , would only look at how much NHS pension you have built up so far. 
You could become ill/lose your job and not work again. Then you might go back to the advisor and say they should never have recommended you to transfer. It's not very likely but the advisor has to take out expensive insurance against this.
Also the fact that you want the money to fund current expenditure would count against you. 
As said there are numerous threads already on this subject......

I could also die between now and retirement, no one knows what our future holds. I think it’s very unfair that I can’t use this money to help me now, when I need it most. Paying a chunk off my mortgage will help me financially in the future too.

xylophone

Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

Marcon

Mousey66 said:

So what would a FA look for to enable the transfer to go ahead? 

If you mean give positive advice to transfer, the answer is 'compliance with the hugely prescriptive FCA regulations'. 

Mousey66 said:

 Or can I still move it if advised not to?

Yes, if you can find a scheme willing to accept it.

As others have already said, read some of the many threads on this topic before doing anything else.