CETV what to do with it ?

Ksw3

You wouldn't be able to pay the CETV into a bank account, it would need to be another pension provider and withdrawals would be at least in part subject to income tax.

Inflation would also be a consideration. You could keep the DB pension and consider a life insurance policy of some kind if you were looking at a  lump sum on death. 

In any case, if you are looking to transfer to a DC scheme you will need financial advice from a suitably qualified adviser who should go through this with you including your attitude to risk

NoMore

Just as an example of how CETV have changed, I have a DB pension of 24k, 150k Lump sum. 18 months ago the CETV was just shy of a million, now its at about 450,000.

BTW I never intend to transfer out, I understand the value of the index linked guaranteed income the DB pension gives. 

badmemory

Also please do not assume that as you get older you will need less income.  You may not be going on expensive foreign holidays but could well need a gardener, cleaner, shopping deliveries including food which takes less preparation.  These things all add up.  I've been confined post op for the last few weeks & my shopping bill has gone up over 25% & that is just short term.

Albermarle

NoMore said:

Just as an example of how CETV have changed, I have a DB pension of 24k, 150k Lump sum. 18 months ago the CETV was just shy of a million, now its at about 450,000.

BTW I never intend to transfer out, I understand the value of the index linked guaranteed income the DB pension gives. 

I turned down one as well ( about 50% of yours ) 
We can 'console' ourselves that in the last 18/24 months most DC funds are down a bit in nominal terms and quite a lot in real terms.

Perfo

Ksw3 said:

You wouldn't be able to pay the CETV into a bank account, it would need to be another pension provider and withdrawals would be at least in part subject to income tax.


Inflation would also be a consideration. You could keep the DB pension and consider a life insurance policy of some kind if you were looking at a  lump sum on death. 

In any case, if you are looking to transfer to a DC scheme you will need financial advice from a suitably qualified adviser who should go through this with you including your attitude to risk

Yep I know I wouldn't be able to transfer direct to a bank account and not sure my scheme would allow me to take out he cash as a lot of DBs don't but I wouldn't want to do this anyway and pay the huge tax bill.  I was only really using a bank account as a comparison i.e. how can my simple current account give me a better return ? 

Perfo

NoMore said:

Just as an example of how CETV have changed, I have a DB pension of 24k, 150k Lump sum. 18 months ago the CETV was just shy of a million, now its at about 450,000.

BTW I never intend to transfer out, I understand the value of the index linked guaranteed income the DB pension gives. 

Wow, that is worrying as all the people that spoke to me about it were referring to maybe five or more years ago.. The calculation must be difficult as it takes them so long to give you a CETV and you can only ask for one per year..  I haven't managed to find a detailed calculator on line either.. 

Perfo

badmemory said:

Also please do not assume that as you get older you will need less income.  You may not be going on expensive foreign holidays but could well need a gardener, cleaner, shopping deliveries including food which takes less preparation.  These things all add up.  I've been confined post op for the last few weeks & my shopping bill has gone up over 25% & that is just short term.

True, but I  do tend to be a little extravagant. I like the idea of saving for rainy days but also live whilst you can. Sorry to hear you are laid up I hope you get well soon. There is the real problem in anyone's long term plan...your health and how it can change one day to the next.. 

Perfo

Albermarle said:

NoMore said:

Just as an example of how CETV have changed, I have a DB pension of 24k, 150k Lump sum. 18 months ago the CETV was just shy of a million, now its at about 450,000.

BTW I never intend to transfer out, I understand the value of the index linked guaranteed income the DB pension gives. 

I turned down one as well ( about 50% of yours ) 
We can 'console' ourselves that in the last 18/24 months most DC funds are down a bit in nominal terms and quite a lot in real terms.

Yes true as well..  I've always thought my DB was pretty good and indeed with the normal progression of promotion and ending up on the highest salary when retiring at 63 would have given me a cracking pension.  As it is this my situation is probably one of the few situations where DB's don't work out better.. 

Albermarle

Perfo said:

NoMore said:

Just as an example of how CETV have changed, I have a DB pension of 24k, 150k Lump sum. 18 months ago the CETV was just shy of a million, now its at about 450,000.

BTW I never intend to transfer out, I understand the value of the index linked guaranteed income the DB pension gives. 

Wow, that is worrying as all the people that spoke to me about it were referring to maybe five or more years ago.. The calculation must be difficult as it takes them so long to give you a CETV and you can only ask for one per year..  I haven't managed to find a detailed calculator on line either.. 

The DB pension provider has to invest in certain low risk types of investments to make sure the scheme stays afloat, and can meet its liabilities in future. Up to a couple of years ago the yields on these investments were very low and now they are more normal. This is what has affected CETV values and brought them more back to normal.

Pat38493

.... which means it's even less likely that an IFA would advise you to do a transfer.