CETV DB transfer to pay off Mortgage? Good sense, too risky or just not allowed?

Dazed_and_C0nfused

joeriki said:

So before posting I was 100% for cashing in. Since, i've decided to not do it, I don't need to, I have enough equity, I think rates wont go as high as I thought. This seams like a great area to make mistakes and details are not my forte. I think i'll take the lump sum of 50k and 6k a year. The fact is pensions like these are insurance against catastrophe, like really poor ill health or injury that prevents work. To cash it in because rates might go high seams like a misuse of the facility. Thanks for all the input. Much appreciated. 

Very sensible.  When you're getting an inflation enhanced £10k in your 80's and 90's you'll be thanking yourself for that decision 😊

joeriki

Dazed_and_C0nfused said:

joeriki said:

Gary1984 said:

Also I note you're a fair bit off full state pension. Buy as many additional years NI contributions as you can between now and retirement. Absolutely nothing beats it as an investment. Get a part time job doing anything to either get your stamps paid by an employer or get the cash to pay them yourself.

I have been meaning to do this. This is the push I need. Looking at this it seams paying from now til 2034 makes sense but paying the 18 years back pay does not as it only adds 15 quid (if I am reading this right?) I have quite bad adhd so I am, lost on everything. Just trying to tidy it all up!  Thanks

Where are you getting £15 from?

UPDATE





Details are not my forte. I got confused. So i rechecked.  If I pay the 12 years from now it goes from 85 per week to 148 per week. My contribution is currently about 800 per year. SO 12 years = 9600. For an extra 3500 per year. So I get my money back in 15 years. Thats good.  But the back pay. is 21 years when I did not pay enough. Thats looks like average 500 - 600 a year. So 11k-15k. to make extra 2k per month. So it seams good value to pay from now but not so good to pay the back pay. What do you suggest?

Albermarle

 If I pay the 12 years from now it goes from 85 per week to 148 per week. My contribution is currently about 800 per year. SO 12 years = 9600. For an extra 3500 per year. So I get my money back in 15 years. Thats good

9,600 divided by £3500 , is less than 3 years , not 15.

It seems unlikely you would have to pay 21 years 'backpay' to get the full amount.

The best idea is to call these people. They have all the info, and will advise you which years can be filled in and which not, how much it will cost etc 

Contact the Future Pension Centre - GOV.UK (www.gov.uk)

Then pay the maximum years you can, as it is an absolute bargain.

QrizB

Albermarle said:

 If I pay the 12 years from now it goes from 85 per week to 148 per week. My contribution is currently about 800 per year. SO 12 years = 9600. For an extra 3500 per year. So I get my money back in 15 years. Thats good

9,600 divided by £3500 , is less than 3 years , not 15.

I wondered about that, but I think the thought is 12 years paying + 3 years receiving = 15 years.

LHW99

It looks like you are around £40 short of the maximum, if you pay NI for the years from now to 2034.

So if the pension is increased by about £5 per back-year paid, that's around 8 years to fill (maybe 7).

Its worth checking with the future pensions centre which years are worth doing. Fill the oldest ones first as I believe you can only go back a certain number of years.