CETV - DB Transfer

Altior

To be honest I think it's highly likely that I'm stuffed in regard to what I want to do, Marcon. However, if there was some kind of wiggle room within the legislation for this type of scenario, there's a fair chance that someone on these boards would be aware of it. 

Do you feel that it will still be £30K in 100 years time? All legislative thresholds should flex over time with the true value of money. It's not going to be changing annually, but should be periodically reviewed, and adjusted accordingly. 

dunstonh

Yields are still increasing so there is a good chance that CETV will be below £30k soon.

jimi_man

Normally people seem to want to get the most they can from a CETV instead of waiting for it to drop!! Quite a perverse situation! 

xylophone

That's the current value in today's pricing. It's partially linked because some of it is capped at a lower rate. iirc some is 2.5% and some is 5%. No PCLS enhancement, the commutation is poor, a factor something like 9.

That CR is really  poor!

Do you have a statement of deferred benefits on leaving?  Does it show any GMP?

Have you obtained a state pension forecast?

Marcon

Altior said:

That's the current value in today's pricing. It's partially linked because some of it is capped at a lower rate. iirc some is 2.5% and some is 5%. No PCLS enhancement, the commutation is poor, a factor something like 9.

You seem a bit vague on the actual benefits. Might be worth finding out the facts, in case they make a cheerier picture than you fear. 

Not sure what you mean by 'no PCLS enhancement' - what did you expect an 'enhancement' to be?

Qyburn

Altior said:

It's £122 pcm, only partially index linked. 

What sort of monthly income do you expect to get from £30K?

xylophone

What sort of monthly income do you expect to get from £30K?

Some monthly income funds which could be held within a SIPP.


https://www.trustnet.com/factsheets/o/by64/premier-monthly-income

https://www.trustnet.com/factsheets/o/guvx/invesco-perpetual-distribution-z-inc

Others here

https://www.ii.co.uk/analysis-commentary/our-favourite-funds-pay-you-monthly-income-ii524589

Altior

Clearing a few things up, I have multiple pensions and this DB is a small part of my overall portfolio. I manage my own fund mix on my current employer scheme and that has an annual average return of just over 12% since 2014. I would simply like to add this capital (if it was possible), on to that scheme in the existing mix. 

I'm still at least eight years away from being able to access pensions under normal circumstances. Possibly ten, possibly more, as the goalposts keep shifting. 

The best that this DB offers me is some modest protection against inflation for that modest amount, but not if inflation is high over an extended period. I would have loved to have been able to transfer when the CETV was £50K+, but the system, for whatever reason has made that practically impossible. The only opportunity therefore is if it falls below the mandated regulated advice threshold. The irony of this is not lost on me, but it's the only viable option to be able to do anything different with the asset. 

I'm actually building a portfolio outside of pensions (in my ISA), of income based ITs to take advantage of prevailing market conditions. I'm hoping that these will see a paper capital gain over time, but the primary purpose is the income element, which is currently yielding between 5-8%. As with most things markets, this is a malleable plan, but I do intend to have some regular income outside of drawdown as an element of my retirement portfolio. It could however also easily be an annuity, gilts, or MM (or a mixture) depending upon market conditions and legislation at the time. 

I expect to qualify for the full new state pension, I have 32 qualifying years banked as things stand. However, I am not counting this in my plans as I absolutely have no faith that it won't be means tested, moved further out, or (very unlikely but not impossible) completely abolished in its current form. If I do end up receiving it, I'll view it as a pleasing bonus. 

Dazed_and_C0nfused

I'm actually building a portfolio outside of pensions (in my SIPP)

What do you mean by that?

Altior

Sorry, I meant ISA, typing too quickly! I will edit to correct.