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

scoobyjones1

cambb said:

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

got you. Many thanks.

cambb

To answer some of the question's the DB was inflation i think capped at 5%. 50% spouse benefit on my death. The reason I transfered it was mainly it enables me to retire early at 58ish plus anything we have left can go to the kids. My dad died at 76  and my mam recieved 50% of his pension.  TBH it wasnt an easy decision at the time but i do believe i made the right one. 

scoobyjones1

cambb said:

To answer some of the question's the DB was inflation i think capped at 5%. 50% spouse benefit on my death. The reason I transfered it was mainly it enables me to retire early at 58ish plus anything we have left can go to the kids. My dad died at 76  and my mam recieved 50% of his pension.  TBH it wasnt an easy decision at the time but i do believe i made the right one. 

Sounds like it was a good decision to transfer out then, well done. So when you were 48 do you remember what the annual pension value was then...about £10k I am guessing?

Cus

If it helps, I was x43, and I was 19 years from the scheme retirement age when I transferred in 2017.

scoobyjones1

Cus said:

If it helps, I was x43, and I was 19 years from the scheme retirement age when I transferred in 2017.

43X sounds like you did pretty well there Cus. Values have certainly dropped off since 2017 it seems.

Cus

Yes, lucky timing with the gilt market etc. This board is the reason I knew about the whole concept.

scoobyjones1

Cus said:

Yes, lucky timing with the gilt market etc. This board is the reason I knew about the whole concept.

One big fat tick for Martin Lewis then! I bet you love him!! Ha ha...congrats.

Prism

To be fair, nobody who transfered from a DB pension in the last 10 years or so knows yet if it will give them a worse or better overall retirement as we haven't had a recession, bubble or crash during that time. So far so good for those that took the transfer, especially for those part way through retirement.

Cus

Prism said:

To be fair, nobody who transfered from a DB pension in the last 10 years or so knows yet if it will give them a worse or better overall retirement as we haven't had a recession, bubble or crash during that time. So far so good for those that took the transfer, especially for those part way through retirement.

Very much depends on how you invested it. If you bought gilts then you would be probably worse off so far. If you left it in cash then probably better than the DB so far. If you stuck it in the S&P then happy days so far...
I think that's why it's so important to obtain proper advice on transferring, including reasonable investment projections and risk assessment, and future investment management.

scoobyjones1

Cus said:

Prism said:

To be fair, nobody who transfered from a DB pension in the last 10 years or so knows yet if it will give them a worse or better overall retirement as we haven't had a recession, bubble or crash during that time. So far so good for those that took the transfer, especially for those part way through retirement.

Very much depends on how you invested it. If you bought gilts then you would be probably worse off so far. If you left it in cash then probably better than the DB so far. If you stuck it in the S&P then happy days so far...
I think that's why it's so important to obtain proper advice on transferring, including reasonable investment projections and risk assessment, and future investment management.

Yes of course but I do not think said advice should be mandatory.,,,unless it's free advice as with Pensionwise or Citizen's Advice. With other pension types it is not. Also the threshold for compulsory financial advice on DB transfers, £30k, has not changed for many years. That's just wrong with the inflation we have had.
You should have the right to decide what to do with your own pension, especially if you do not like the terms or death benefit provisions, which can be low or zero %...but that's another thread ;-)