Frozen final salary valued at £12500pa transfer value?

Silvertabby

Then I would say that you won't be able to draw your benefits until you retire.  Or does your employer offer flexible retirement?  That usually means dropping your hours to part time before you can take your pension to date - and would require your employers approval.

Transferring out would be extremely difficult, if not impossible.  

Walter_Sobchak

Silvertabby said:

Then I would say that you won't be able to draw your benefits until you retire.  Or does your employer offer flexible retirement?  That usually means dropping your hours to part time before you can take your pension to date - and would require your employers approval.

Transferring out would be extremely difficult, if not impossible.  

Yes, my employer now offers flexible retirement, up to two years part time.

Walter_Sobchak

Why is it so difficult to transfer out now?

QrizB

Walter_Sobchak said:

Why is it so difficult to transfer out now?

Because transfer values have fallen since interest rates (& gilt yelds) have risen.

For someone with a pension as big as yours you'll need to pay several £k for professional advice. Your advisor will assess your financial situation, the transfer value and the value of the pension you're surrendering and will make a recommendation as to whether transferring is in your best interests, or not.

With a lower transfer value, the chance of the advisor finding the transfer to be in your best interests are much smaller.

af1963

You don;t necessarily need to do the same thing with all parts of your pension. You could aim to leave the DB untouched till you are able to take it unreduced at 60, and use your DC pension to live on until then.

Silvertabby

af1963 said:

You don;t necessarily need to do the same thing with all parts of your pension. You could aim to leave the DB untouched till you are able to take it unreduced at 60, and use your DC pension to live on until then.

Not in this case, as the two pensions are linked.

theoretica

But also the scheme rules may simply say 'no transfers' while you are still with the same employer - even when it would be theoretically possible (if v. hard) after you leave that employer.

dunstonh

Walter_Sobchak said:

Why is it so difficult to transfer out now?

Statistically, only around 1 in 10 cases are justifiable for transferring. It went through a period when it moved towards 6 out 10 (although the FCA won't admit that) but the halving of CETVs has brought it back to pre credit crunch levels.