Should I see a IFA

katelina

Looking to retire next July at 64 a year early due to my health. 
I have a DB Pension with my current employer who I've worked 21 years for 21 hours a week.
Transfer Value this year was approx 84k although 2 years ago was 113k.
We still have a £44k Mortgage and only about £10k in savings.
Both myself and my husband didn't have any pensions prior to 20 years ago so no big pots for us.
I'm thinking that if I take the 25% tax free along with the approx £270 a month Pension it should cover the mortgage for 3 years till my State Pension comes in. Mortgage is till I'm 69.
Husband has 3 pots of pension. One with his present employer (Scottish Widows pension)worth £53k, one worth £22k with Standard Life from a previous employer and also a old one from years ago with Rolls Royce with a transfer value of £66k if transferred next July or £83k if transferred when he's 65 in 2030.
I guess I'm asking should we be thinking of maybe transferring his RR pension and maybe using the 25% from that to help just pay the mortgage off with my 25%.
Is it worth seeing a IFA with the pots being small as we're never going to have a big pension.

2nd_time_buyer

Transferring DB pensions to a "pot" (DC pension) is generally expensive if it is even possible - you may need to get a positive recommendation from an IFA which could costs 1000's.  

It might be that an IFA would be useful to you generally. However, I suspect it would be better to try and understand what you have got and what is possible first before considering that route. As you say, you don't appear to have a huge amount of money so you probably don't want to be losing a large chunk of it to fees.
 
Please can you confirm which of the pensions are defined benefit and how much you would receive per year if/when in payment?

Albermarle

As above and for the ones that are DB pensions, their main role is to provide you/your husband with a guaranteed income until you die, usually with some link to inflation and a pension for the remaining spouse when you die, even if you live to 100 or longer.
This type of guaranteed income is very good security in your retirement, even if it is not a big figure every year.
The transfer value is really a side issue and as said above transferring it is a very expensive and usually unwise move.

katelina

The one I have is a Defined Benefits Pension with WTW.
The RR one is a DB one that husband has the other 2 not.
Also should we transfer the 22k Standard Life one to his present one with Scottish Widows and just leave his RR one till he retires?
I guess we'll just have to tighten our belts a little next year. Damn the government for changing the pension age

MallyGirl

The 2 DB pensions are likely to have a pension commencement lump sum option (PCLS) but it won't be 25% as there is no pot. Each will have rules based on the scheme. You need to understand those scheme rules to see what you could get. Taking a higher lump sum in exchange for less salary ongoing (and vice versa) may be an option. Is the normal retirement age for your pension 65? How much would they reduce it by if you took it a year early - often around 5%.
With the numbers involved it is very unlikely that transferring the DB pensions out is the right way to go - why do you think it is?

Sarahspangles

katelina said:

The one I have is a Defined Benefits Pension with WTW.
The RR one is a DB one that husband has the other 2 not.
Also should we transfer the 22k Standard Life one to his present one with Scottish Widows and just leave his RR one till he retires?
I guess we'll just have to tighten our belts a little next year. Damn the government for changing the pension age

Normally the Defined Benefit pensions are the ones to keep. It’s possible to put a nominal value on a DB pension but you’re not comparing like for like with DB and DC pensions. DB pensions usually have some degree of inflation proofing and spouse pension.

You could consider how much interest you are paying on your mortgage, and how long it is fixed for. Then whether it makes sense to pay into a pension or pay off your mortgage more quickly. 

eskbanker

katelina said:

Looking to retire next July at 64 a year early due to my health.

Is your health condition likely to have a significant impact on your life expectancy, or something less severe that just affects ability to work?  The former may increase the likelihood of being able to transfer your DB pension, although that still doesn't necessarily make it a good idea....

katelina

Sarahspangles said:

katelina said:

The one I have is a Defined Benefits Pension with WTW.
The RR one is a DB one that husband has the other 2 not.
Also should we transfer the 22k Standard Life one to his present one with Scottish Widows and just leave his RR one till he retires?
I guess we'll just have to tighten our belts a little next year. Damn the government for changing the pension age

Normally the Defined Benefit pensions are the ones to keep. It’s possible to put a nominal value on a DB pension but you’re not comparing like for like with DB and DC pensions. DB pensions usually have some degree of inflation proofing and spouse pension.

You could consider how much interest you are paying on your mortgage, and how long it is fixed for. Then whether it makes sense to pay into a pension or pay off your mortgage more quickly. 

Fixed ends in May, We don't or won't have enough cash to pay it off, even if I pay the £22k off the mortgage I will still have a mortgage of around £20 k then to find money for each month and £270 a month pension isn't going to cover that and a holiday a year.

katelina

eskbanker said:

katelina said:

Looking to retire next July at 64 a year early due to my health.

Is your health condition likely to have a significant impact on your life expectancy, or something less severe that just affects ability to work?  The former may increase the likelihood of being able to transfer your DB pension, although that still doesn't necessarily make it a good idea....

Heart Disease and Diabetes. 

MallyGirl

katelina said:

Sarahspangles said:

katelina said:

The one I have is a Defined Benefits Pension with WTW.
The RR one is a DB one that husband has the other 2 not.
Also should we transfer the 22k Standard Life one to his present one with Scottish Widows and just leave his RR one till he retires?
I guess we'll just have to tighten our belts a little next year. Damn the government for changing the pension age

Normally the Defined Benefit pensions are the ones to keep. It’s possible to put a nominal value on a DB pension but you’re not comparing like for like with DB and DC pensions. DB pensions usually have some degree of inflation proofing and spouse pension.

You could consider how much interest you are paying on your mortgage, and how long it is fixed for. Then whether it makes sense to pay into a pension or pay off your mortgage more quickly. 

Fixed ends in May, We don't or won't have enough cash to pay it off, even if I pay the £22k off the mortgage I will still have a mortgage of around £20 k then to find money for each month and £270 a month pension isn't going to cover that and a holiday a year.

If that £22k is "£22k with Standard Life from a previous employer" that your husband has then you won't get £22k out since it will be liable for income tax at your husband's prevailing rate.
It doesn't sound like you can afford a holiday so that will probably have to wait till you get the state pension as well as the DB ones.

katelina

MallyGirl said:

katelina said:

Sarahspangles said:

katelina said:

The one I have is a Defined Benefits Pension with WTW.
The RR one is a DB one that husband has the other 2 not.
Also should we transfer the 22k Standard Life one to his present one with Scottish Widows and just leave his RR one till he retires?
I guess we'll just have to tighten our belts a little next year. Damn the government for changing the pension age

Normally the Defined Benefit pensions are the ones to keep. It’s possible to put a nominal value on a DB pension but you’re not comparing like for like with DB and DC pensions. DB pensions usually have some degree of inflation proofing and spouse pension.

You could consider how much interest you are paying on your mortgage, and how long it is fixed for. Then whether it makes sense to pay into a pension or pay off your mortgage more quickly. 

Fixed ends in May, We don't or won't have enough cash to pay it off, even if I pay the £22k off the mortgage I will still have a mortgage of around £20 k then to find money for each month and £270 a month pension isn't going to cover that and a holiday a year.

If that £22k is "£22k with Standard Life from a previous employer" that your husband has then you won't get £22k out since it will be liable for income tax at your husband's prevailing rate.
It doesn't sound like you can afford a holiday so that will probably have to wait till you get the state pension as well as the DB ones.

Ohhhhh we have holidays don't you worry and that is what I don't want to give up lol 
I'm thinking to just transfer the Standard Life to Scottish widows to tidy everything up and I think its transferrable and free to transfer.
We don't have huge wages and are able to manage on husbands wage if we didn't have a Mortgage. We are very careful with our money and don't have any habits other than our holidays. 
Some of us dream of huge pension pots but for us it wasn't to be