How to make the most from your defined benefit pension

swindiff

This is my plan, I do like value for money 

RoysV

I get the sentiment, but after seeing some nursing homes I couldn't think of anything worse than being in one for 23 years. 

Tommyjw

I attended a seminar once where guest speakers would discuss topics they maybe thought interesting/funny/important. This one actuary came in with the discussion on whether if it was ever possible to obtain 100% reliable brain transplants to a younger body you could keep your DB pension as you are the same person, but it would just keep being payable, forever... and urged Trustees in attendance to consider this with their legal team.

It got a few laughs but given he was an actuary i dont think he understands humour and was very serious.

Bostonerimus1

I hope she's been paying her US taxes. If not the IRS could make her 118th birthday a nightmare.

QrizB

RoysV said:

I get the sentiment, but after seeing some nursing homes I couldn't think of anything worse than being in one for 23 years. 

On the other hand, if you've enough money I'm sure there are some extremely comfortable ones.

hugheskevi

I think Irene Triplett got better value...82 years in receipt of a survivor pension after the original member died in his 90s.

Universidad

hugheskevi said:

I think Irene Triplett got better value...82 years in receipt of a survivor pension after the original member died in his 90s.

Imagine working for the civil service department that had to keep the processing overhead of a pension from the 1860s running for the last living person, and making sure it survives every IT upgrade, despite dating from the same period that Babbage was still working on the analytical engine.

hugheskevi

Universidad said:

hugheskevi said:

I think Irene Triplett got better value...82 years in receipt of a survivor pension after the original member died in his 90s.

Imagine working for the civil service department that had to keep the processing overhead of a pension from the 1860s running for the last living person, and making sure it survives every IT upgrade, despite dating from the same period that Babbage was still working on the analytical engine.

I sometimes try to imagine the poor saps working in our Civil Service 100 years from now, still processing survivor pensions from multiple different schemes, cursing the fools who felt the need to introduce new pension schemes in 2002, 2007, 2015, and after botching 2015, have a special window between 2015-22 where members get a choice of schemes 

That is a lot of change in just 20 years to things which will still be around 100-150 years from now. The cumulative administration costs must add up to a pretty penny.

ewaste

The Public Sector can at least eat the overheads, it must be a nightmare in the Private Sector who've the same issues. Although could go bust or merge numerous times so can't really guarantee continuity or recourse in anything like the same way the public sector can. 

leosayer

Insurance companies are starting to hoover up some legacy / deferred DB schemes from private employers so the skills required will end up concentrated in a smaller number of firms.

There was a story in the news last week about the impact on discretionary benefits which members had come to expect.

https://www.theguardian.com/money/2024/mar/02/were-hugely-worried-uk-private-pension-rule-changes-disrupt-retirement-plans

Cus

23 years.ouch. if you were DC that's at least £1.6mn left in the pot aged 94!!