Defined benefit Vs transfer ....

markc939

Hi, and thanks in advance for any advice,
 
I have a defined benefits pension from 20 years ago which is advising it will pay around £8000 a year when I'm 60 in 7 years,  it's transfer value is £160000, is it worth sticking with it or transferring it into my current standard life work pension for growth? I plan to retire in about 10 years although my financial situation may change that 

Mark.

Cobbler_tone

I think this has probably been well covered on here.
I'd assume the DB scheme has growth attached to it, so check that out. Also associated benefits around spousal pensions, potential death in service etc. 
Transfer values have also dipped significantly over the past few years.
Finally, (unless provided by your scheme/company) the cost to get the required advice will be significant, maybe £10k+ regardless of whether you transfer or not.

Each to there own but the sensible approach is probably to let it sit until you need a guaranteed income in later life. It sounds as though it will be a tidy sum that'll supplement any current pensions nicely. 

Albermarle

markc939 said:

Hi, and thanks in advance for any advice,
 
I have a defined benefits pension from 20 years ago which is advising it will pay around £8000 a year when I'm 60 in 7 years,  it's transfer value is £160000, is it worth sticking with it or transferring it into my current standard life work pension for growth? I plan to retire in about 10 years although my financial situation may change that 

Mark.

Suggest you put 'DB transfer' in the search box at the top of page, and you will find lots of threads on the subject.
The more recent ones are more relevant as CETV values have dropped a lot, making a transfer less worthwhile and even more difficult. 

bjorn_toby_wilde

As above, usually best left and often it can only be transferred out if you are an “insistent client”.

Does it pay out in full at 60 or are there reductions? (In other words what’s the normal retirement age for the scheme?). Some of the older schemes do still pay out in full at 60 although it’s often at the discretion of the trustees and the option can be removed (Boots did this recently). If it does then that’s a big positive.

markc939

I think it pays out full at 60, I'll check it out thanks 👍 

Thanks for all the comments, I'll do a search also, very unlike me not to check the forums first sorry 

Dazed_and_C0nfused

Don't lose sight of the fact that the DB pension of £8,000* plus a standard new State Pension of £11,500 gives you a very nice guaranteed income to base your retirement on from State Pension age.

*Is this the value when you left the scheme or the value now, after the appropriate inflation increases have been applied?

markc939

It's the value now thanks, I think the advice is generally leave it where it is, so thanks I think I will for now 👍