£24k DB pension pot

Jacobia1

Hi
I’m after some help please.
I have a small DB pension pot with Rothesay of £24k and I will be 55 in several weeks time.

Rothesay have sent me 3 options

1 - £900 per year pension

2 - £750 per year and £5k tax free lump sum

3 - Trivial commute of £24k

I can’t use trivial commute as I have another small £22k DC pension so exceeds the £30k cap.  This £22k is already in process of being taken as a lump sum.

There is a further option to Transfer to another DC provider which then gives better scope to cash in.

is anyone aware of any DC pension providers that would allow me to transfer in from a DB with an ability to cash in within a year or so.

thanks very much

Dazed_and_C0nfused

Jacobia1 said:

Hi
I’m after some help please.
I have a small DB pension pot with Rothesay of £24k and I will be 55 in several weeks time.

Rothesay have sent me 3 options

1 - £900 per year pension

2 - £750 per year and £5k tax free lump sum

3 - Trivial commute of £24k

I can’t use trivial commute as I have another small £22k DC pension so exceeds the £30k cap.  This £22k is already in process of being taken as a lump sum.

There is a further option to Transfer to another DC provider which then gives better scope to cash in.

is anyone aware of any DC pension providers that would allow me to transfer in from a DB with an ability to cash in within a year or so.

thanks very much

Have you rounded some figures?

Option 2 seems better than average rate for giving up guaranteed pension.

Why do you want to give up the certainty of guaranteed income for the rest of your life?

And a DB pension doesn't have a "pot", the £24k is what Rothesay are willing to pay you to give up your right to a guaranteed income.

MallyGirl

With the value being under £30k you don't need to take transfer advice but you still need to find a DC prover that will accept the transfer in without it. Vanguard has been mentioned in the past as being open to this but I can't remember how long ago that was. You would probably be best to ask a few of the usual suspects. The alternative is to open a stakeholder pension - I think Standard Life do one - which has to accept the transfer. 

Marcon

Jacobia1 said:

Hi
I’m after some help please.
I have a small DB pension pot with Rothesay of £24k and I will be 55 in several weeks time.

Rothesay have sent me 3 options

1 - £900 per year pension

2 - £750 per year and £5k tax free lump sum

3 - Trivial commute of £24k

I can’t use trivial commute as I have another small £22k DC pension so exceeds the £30k cap.  This £22k is already in process of being taken as a lump sum.

There is a further option to Transfer to another DC provider which then gives better scope to cash in.

is anyone aware of any DC pension providers that would allow me to transfer in from a DB with an ability to cash in within a year or so.

thanks very much

Simplest option is likely to be opening a stakeholder pension - you can do it yourself - no advice needed - and arrange the transfer yourself. See https://forums.moneysavingexpert.com/discussion/6566431/move-small-db-pension-into-dc-scheme#latest

You can cash in the day after you transfer, given you'll be 55 by then.

Jacobia1

thanks for the advice