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

shortseller09

scoobyjones1 said:

Don't you think that CETVs, taking into account the individual differences of course, should generally start to go up again if and when interest rates are cut and I presume Gilt yields go up? This is what I was told by one pension specialist adviser this week. Was he wrong?

He was if he equates gilt yields 'going up' with increased CETVs

sandsy

scoobyjones1 said:

Don't you think that CETVs, taking into account the individual differences of course, should generally start to go up again if and when interest rates are cut and I presume Gilt yields go up? This is what I was told by one pension specialist adviser this week. Was he wrong?

You might want to avoid that specialist. CETVs are higher when gilt yields go down (not up). 

MeteredOut

Looking back at some spreadsheets I have for my only DB pension (from an employment ending 20 years ago)

I only have figures starting from 2020, but CETV peaked around Jan 2022 - £450K, and I recall (don't have figures) pension was around £10,600 pa - approaching 36x

Now: CETV £232K, pension £12,300, just under 19x

Not concerned with the change as this is my safety net pot alongside the DC pension I now contribute to.

I'd never consider transferring before, and I'd certainly not do it now!

cmundo

Well I think this is one financial event that worked in my favour (for once!) I received a transfer value of £203k for annual pension of around £4k pa. Quotation was Jan 22, which I acted on and transferred out.  I couldn’t actually believe my luck! 

Pat38493

cmundo said:

Well I think this is one financial event that worked in my favour (for once!) I received a transfer value of £203k for annual pension of around £4k pa. Quotation was Jan 22, which I acted on and transferred out.  I couldn’t actually believe my luck! 

I remember receiving a transfer CETV valude of £780K for a 16.5K deferred  pension from 2008 at around the same time.  I also thought it was very high and if the LTA had already been abolished at that time I might have tried to investigate it a bit further.  There was a time back then when the values was so high that it would probably have made sense to transfer out although getting a +ve recommendation even then was hard I think.

Dandytf

My ex employers DB CETV used to be printed from each yearly statement, and viewable online.
I checked as this Value has been missing past 2 years and have been advised I'de need to be Divorced to request Transfer Value?
Not easy being Single sometimes

ukdw

I transferred out in 2017 at a multiple of 41x age 55 DB figure or 34x age 60 figure.   Since then Investment growth has more or less tracked or sometimes been slightly ahead of capped RPI until 2023 when it dropped behind a bit - currently recovered a bit but still about 3% behind.

Currently doing a partial annuity purchase at the equivalent of a multiple of just below 17x - (level rather than capped RPI though - so not really a fair comparison I know).

For a fairer comparison I also did an RPI & LPI linked annuity quote and it came out as the equivalent of 26.5x & 26x respectively - which I think is pretty good when you consider that I got 34x when I transferred out.  

scoobyjones1

cmundo said:

Well I think this is one financial event that worked in my favour (for once!) I received a transfer value of £203k for annual pension of around £4k pa. Quotation was Jan 22, which I acted on and transferred out.  I couldn’t actually believe my luck! 

how hard was it to transfer out?

xylophone

have been advised I'de need to be Divorced to request Transfer Value?
Not easy being Single sometimes 

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/what-information-must-your-pension-scheme-provide#:~:text=Transfer quotes&text=Generally, you have the right,for free every 12 months.

Transfer quotes

If you want to know how much is available in your pension to move to another provider, then you’ll need to request a transfer value.

Generally, you have the right to ask for a transfer value – and transfer, if you have more than 12 months to go – to the normal retirement age in the scheme.

If you have a defined benefit scheme, you can normally request one transfer value for free every 12 months. The value will normally be guaranteed for three months. The trustees of the scheme can grant more frequent requests if they wish but they may charge you for this.

What scheme rule/particular factor has abrogated your right to a transfer value?

cmundo

scoobyjones1 said:

cmundo said:

Well I think this is one financial event that worked in my favour (for once!) I received a transfer value of £203k for annual pension of around £4k pa. Quotation was Jan 22, which I acted on and transferred out.  I couldn’t actually believe my luck! 

how hard was it to transfer out?

Well I had to use an IFA and there was a lot of paperwork.  It was done through True Potential whose work up recommended the transfer would be beneficial.  It took a few months in all.  I subsequently moved it on to Vanguard and ditched the IFA after transfer completed .