CETV or Cash Equivalent Transfer Values on pension transfers. Post yours.

scoobyjones1

As is well reported CETV's have dropped dramatically this past 2-3 years. I thought it may be helpful for some people to post theirs, whether recent or past valuations. This is NOT a thread for bickering or argument.

According to messages I have received, one chap on here in 2021 had a pension of £2k a year with a CETV value of £120k....so 60 times in 2021.
This week we got one of £2.3k a year with a CETV of just £60k....so only 26 times, December 2023. Kindly post yours so we can see where they have been and where they might be going.

Of course every fund is different but the trend is the same and usually linked to interest rates and Gilt yields.
Surely transfer values should increase again, as and when interest rates are cut which may be starting soon, as inflation is falling quite sharply now. As sharply as it climbed.

NoMore

I've posted this before CETV's are dropping (as expected), if your mid transfer hope you make your deadline — MoneySavingExpert Forum

28k per year DB pension, latest CETV is £415,000, from a high of nearly a million back in 2020/2021. Never tempted to cash in. 

Mr.Generous

During my annual pension review the advisor told me the business from my former employer had pretty much dried up as they (Kingfisher pension) were offering less than half they paid out when I transferred. It was 40 x the pension I would have got at age 60 if I took no lump sum. They must have really wanted to get some pension liability off the books, crazy not to take it.

Pension pot is doing well again after a slow decline for over a year BTW.  YOY up 38k.

Marcon

scoobyjones1 said:

As is well reported CETV's have dropped dramatically this past 2-3 years. I thought it may be helpful for some people to post theirs, whether recent or past valuations. This is not a thread for bickering or argument but any info or thoughts as to how CETV's are arrived at, such as interest rates, Gilt values and the like would be helpful.
According to messages I have received, one chap on here in 2021 had a pension of £2k a year with a CETV value of £120k. This week we got one of £2.3k a year with a CETV of just £60k. Kindly post yours so we can see where they have been and where they might be going. Surely they should increase again as and when interest rates are cut, which may be starting soon, as inflation is falling quite sharply now. As sharply as it climbed.

Given that calculations are scheme specific, and many people misunderstand what they are looking at in terms of the pension they think they will receive at NRD, this is more likely to be misleading than helpful.

Hoenir

Marcon said:

scoobyjones1 said:

As is well reported CETV's have dropped dramatically this past 2-3 years. I thought it may be helpful for some people to post theirs, whether recent or past valuations. This is not a thread for bickering or argument but any info or thoughts as to how CETV's are arrived at, such as interest rates, Gilt values and the like would be helpful.
According to messages I have received, one chap on here in 2021 had a pension of £2k a year with a CETV value of £120k. This week we got one of £2.3k a year with a CETV of just £60k. Kindly post yours so we can see where they have been and where they might be going. Surely they should increase again as and when interest rates are cut, which may be starting soon, as inflation is falling quite sharply now. As sharply as it climbed.

Given that calculations are scheme specific, and many people misunderstand what they are looking at in terms of the pension they think they will receive at NRD, this is more likely to be misleading than helpful.

Needs little comment either when there's a direct correlation to Gilt Yields. 

scoobyjones1

Mr.Generous said:

During my annual pension review the advisor told me the business from my former employer had pretty much dried up as they (Kingfisher pension) were offering less than half they paid out when I transferred. It was 40 x the pension I would have got at age 60 if I took no lump sum. They must have really wanted to get some pension liability off the books, crazy not to take it.

Pension pot is doing well again after a slow decline for over a year BTW.  YOY up 38k.

Thanks for posting. Well done, it's been a good year for the stock market. So what CETV were you given and when? What was the annual pension value at the time? Seems you took it and made a good choice?

hugheskevi

XPS publishes statistics on typical transfer values, at the link below, which shows transfer values down by about 40-45% from peak at the end of 2021.

https://www.xpsgroup.com/what-we-do/technology-and-trackers/xps-transfer-watch/xps-transfer-value-tracker/

scoobyjones1

hugheskevi said:

XPS publishes statistics on typical transfer values, at the link below, which shows transfer values down by about 40-45% from peak at the end of 2021.

https://www.xpsgroup.com/what-we-do/technology-and-trackers/xps-transfer-watch/xps-transfer-value-tracker/

Great. Many thanks, extremely helpful.

cambb

HI,

I transfered my DB in 2017. My figures are below:-

Age 55 Gross Retirement Pension
£12,288.60 Per Annum

Age 58 Gross Retirement Pension
£13,809.24 Per Annum

Age 65 Gross Retirement Pension
£19,016.28 Per Annum

I recieved £522k but was actually £501k after fees in July 2017.

Today its worth £677k. I do have another works DC pension that I pay 5% and my company 20% due to them closing down the DB scheme.

Thanks

Marcon

scoobyjones1 said:

cambb said:

HI,

I transfered my DB in 2017. My figures are below:-

Age 55 Gross Retirement Pension
£12,288.60 Per Annum

Age 58 Gross Retirement Pension
£13,809.24 Per Annum

Age 65 Gross Retirement Pension
£19,016.28 Per Annum

I recieved £522k but was actually £501k after fees in July 2017.

Today its worth £677k. I do have another works DC pension that I pay 5% and my company 20% due to them closing down the DB scheme.

Thanks

Sounds like it's your round, cambb ! Well done.
So are you saying you transferred out when you were 65, in 2017? £19k per year was the DB pension and the CETV was £522k? That would be a ratio of 27 times.

I don't think that's what they are saying at all - which shows the dangers of this sort of thread. If they were 65 in 2017, they wouldn't have been given figures for early retirement at 55 or 58.

Also no mention of how their funds were invested...or how their pension increased in payment...or survivor benefits...

cambb

scoobyjones1 said:

cambb said:

HI,

I transfered my DB in 2017. My figures are below:-

Age 55 Gross Retirement Pension
£12,288.60 Per Annum

Age 58 Gross Retirement Pension
£13,809.24 Per Annum

Age 65 Gross Retirement Pension
£19,016.28 Per Annum

I recieved £522k but was actually £501k after fees in July 2017.

Today its worth £677k. I do have another works DC pension that I pay 5% and my company 20% due to them closing down the DB scheme.

Thanks

Sounds like it's your round, cambb ! Well done.
So are you saying you transferred out when you were 65, in 2017? £19k per year was the DB pension and the CETV was £522k? That would be a ratio of 27 times.

No i was 48. I always planned to retired at 58 so i got 3 quotes on how much my pension would be worth at different ages