CETV - DB Transfer

Dazed_and_C0nfused

Altior said:

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

Makes more sense!

Altior

My deferred DB pension has moved to Aptia with a new portal. Played around to see what is available.

So my new cetv is about £29K, meaning I can now transfer without advice. Yay. In today's pricing, the pension in payment would be £200 pcm from 65 (I'm 50 now). Or maximum lump sum circa £11K and £150 pcm.

Quite an interesting call, I can definitely beat inflation via manual investment choices. But a very modest, index linked receipt could be useful insurance in retirement. I'm not as eager to transfer as I was on earlier numbers. However if I don't transfer on this valuation, I may never get another realistic opportunity to do so. 

Cobbler_tone

Altior said:

My deferred DB pension has moved to Aptia with a new portal. Played around to see what is available.

So my new cetv is about £29K, meaning I can now transfer without advice. Yay. In today's pricing, the pension in payment would be £200 pcm from 65 (I'm 50 now). Or maximum lump sum circa £11K and £150 pcm.

Quite an interesting call, I can definitely beat inflation via manual investment choices. But a very modest, index linked receipt could be useful insurance in retirement. I'm not as eager to transfer as I was on earlier numbers. However if I don't transfer on this valuation, I may never get another realistic opportunity to do so. 

Low risk either way IMO. Who knows where you may be at 55, 65, 75, 95 or not! Depends how much you want/need this money now. You have plenty of time to bridge the 'loss' of that guaranteed income at 65, hopefully assuming you get there! If it is to invest and not actually spend, it's still low risk but you may as well leave it where it is and let it grow retaining the guaranteed lump sum and added income.

Altior

Yes, I don't believe there's a 'no brainer' option. Tax is another factor, if I leave it until 65 it will be all taxed at the current 20% aside from the lump sum.

At this point in time, my plan is to stop working full time as soon as I can access my DC pots. So way before the NRA of this little DB pension. 

LHW99

Also consider IHT now, if it is transferred to DC

Altior

The CETV value is now £25K 

So, a transfer is off the table for the time being !

Cobbler_tone

Altior said:

The CETV value is now £25K 

So, a transfer is off the table for the time being !

Unfortunately it is never going to be like trading shares, i.e. a live price. I'm guessing to get anything more than one CETV per year will cost you. You missed the boat in Oct 2024 if you really wanted to maximise the value and transfer out without paying for advise. I reckon you'll look back one day and be pleased that you had a little bit of guaranteed income. No regrets.

Altior

Cobbler_tone said:

Altior said:

The CETV value is now £25K 

So, a transfer is off the table for the time being !

Unfortunately it is never going to be like trading shares, i.e. a live price. I'm guessing to get anything more than one CETV per year will cost you. You missed the boat in Oct 2024 if you really wanted to maximise the value and transfer out without paying for advise. I reckon you'll look back one day and be pleased that you had a little bit of guaranteed income. No regrets.

I understand why, but the whole thing in my specific case has been bananas. So I was effectively locked out of transferring to supposedly protect me from myself when it was £50K+, invested it now would be pushing double that. Then I could not transfer again, for the sake of £36! Now the valuation is a new low, and nobody would stop me from transferring! At the worst time.

Definitely aware it's not a live pricing scenario, I had resigned myself to not transferring at all, but my life situation has subsequently evolved, due to poor health, and I may need to realise retirement assets earlier than anticipated. So in the process of refreshing my personal balance sheet, I requested an updated value for this little(er) DB. It's off the cards for now, but unlikely I will be waiting for my NRA to start realising this asset.