Defined benefit pension

dunstonh

I will have my NHS pension and state pension, so I’m sure I’d be fine to live on them

From what you have written, you have not been in the NHS long.  Again, its the amounts that matter. 

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.

Unlikely any of those would persuade an adviser to agree that a transfer is suitable.

If you cannot afford things when you are working, then robbing your retirement years to pay for current lifestyle isn't going to work.

Or can I still move it if advised not to?

If the advice is not to transfer, you will have around a £5000+ fee to pay and no providers are accepting transfers without an adviser recommending it.

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.

What is the CETV?

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.

When you took out the Tesco pension, you agreed to it doing exactly what it is going to do.   Its not unfair that you cannot choose an option that is likely to leave you worse off.

MX5huggy

Have you been in the NHS less than 1 year, and asked for a transfer value of the Tesco into NHS? The inflation up rating of the NHS pension I guess is CPI for transfered in pension (it’s CPI plus 1.5% for benefits built up of actual NHS pension) is probably better that the Tesco pension (check). 

NHS pension while generous is not going to get you out of a hole. 10 years will give you 10/54ths annually of your salary presuming you stay on the same pay. So less than 20% 

Mousey66

MX5huggy said:

Have you been in the NHS less than 1 year, and asked for a transfer value of the Tesco into NHS? The inflation up rating of the NHS pension I guess is CPI for transfered in pension (it’s CPI plus 1.5% for benefits built up of actual NHS pension) is probably better that the Tesco pension (check). 

NHS pension while generous is not going to get you out of a hole. 10 years will give you 10/54ths annually of your salary presuming you stay on the same pay. So less than 20% 

I’ve been in the NHS scheme since 2018, so wouldn’t want it transferred to that one.

Mousey66

xylophone said:

Have you obtained a state pension forecast?

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

I have done that.

Mousey66

dunstonh said:

I will have my NHS pension and state pension, so I’m sure I’d be fine to live on them

From what you have written, you have not been in the NHS long.  Again, its the amounts that matter. 

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.

Unlikely any of those would persuade an adviser to agree that a transfer is suitable.

If you cannot afford things when you are working, then robbing your retirement years to pay for current lifestyle isn't going to work.

Or can I still move it if advised not to?

If the advice is not to transfer, you will have around a £5000+ fee to pay and no providers are accepting transfers without an adviser recommending it.

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.

What is the CETV?

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.

When you took out the Tesco pension, you agreed to it doing exactly what it is going to do.   Its not unfair that you cannot choose an option that is likely to leave you worse off.

The CETV is £41,500 ish.
I didn’t know when I took the Tesco pension out that it would be so much of a hassle to move it.

MarkCarnage

When did you get that 'current' transfer value....?

If it's more than 3 months ago, you may find it's now under £30k....

Mousey66

MarkCarnage said:

When did you get that 'current' transfer value....?

If it's more than 3 months ago, you may find it's now under £30k....

MarkCarnage said:

When did you get that 'current' transfer value....?

If it's more than 3 months ago, you may find it's now under £30k....

It was about a month ago. I might hang on then and get another TV in December, if its gone under 30k problem solved! 🙏🏻🤞🏻

Dazed_and_C0nfused

It was about a month ago. I might hang on then and get another TV in December, if its gone under 30k problem solved! 🙏🏻🤞🏻

Presumably problem solved as you wouldn't want to give away £7,500 TFLS and an inflation linked pension of £1,200/year for less than £30k 

Mousey66

Dazed_and_C0nfused said:

It was about a month ago. I might hang on then and get another TV in December, if its gone under 30k problem solved! 🙏🏻🤞🏻

Presumably problem solved as you wouldn't want to give away £7,500 TFLS and an inflation linked pension of £1,200/year for less than £30k 

If I hadn’t paid into it I wouldn’t have the pension anyway, I’m not driven by money or greedy I just want to sort some financial affairs asap before my mortgage shoots up and give us a better quality of life.

dunstonh

Mousey66 said:

MarkCarnage said:

When did you get that 'current' transfer value....?

If it's more than 3 months ago, you may find it's now under £30k....

MarkCarnage said:

When did you get that 'current' transfer value....?

If it's more than 3 months ago, you may find it's now under £30k....

It was about a month ago. I might hang on then and get another TV in December, if its gone under 30k problem solved! 🙏🏻🤞🏻

That CETV was probably around £75k this time last year.

With such a low CETV, i can't see any adviser recommending it.   And the breakeven point, if below £30k CETV, will be so low that it would be daft to do it.

It works out at £7,500 lump sum and about £1,200 a year.

Is that figure up-to-date?  i.e. has it been updated to reflect the increases since you left?