Final Salary Pension transfer

Dazed_and_C0nfused

During the course of this thread your DB pension has already increased by 50%.

It started as a couple of hundred pounds per month and is now £3.6k/year.

Silverfox1967

Dazed_and_C0nfused said:

During the course of this thread your DB pension has already increased by 50%.

It started as a couple of hundred pounds per month and is now £3.6k/year.

£3.6k / 12 = ???

FIREDreamer

Silverfox1967 said:

Dazed_and_C0nfused said:

During the course of this thread your DB pension has already increased by 50%.

It started as a couple of hundred pounds per month and is now £3.6k/year.

£3.6k / 12 = ???

£300 = £200 increased by 50%

Silverfox1967

Marcon said:

Silverfox1967 said:

Cobbler_tone
Thanks for your info, most helpful and i will follow up to see is there is any ex-employee advice.
The value in question is over £30k in my 'pot', and as i've mentioned previously my primary reasons for wanting to move are control of my funds and providing for dependents, something which i don't feel the DB scheme provides me with.
In the last newsletter i received from the company, the overall fund value was in deficit and had been for a period of time, something else which concerns me.

You say you understand DB pensions, so why was this of concern to you? Are you worried about the employer's covenant?

Yes it is of a slight concern 

Marcon

Silverfox1967 said:

The value that i will receive each month from this on the latest projection is not large, just a couple of hundred pounds and all i keep getting told is that this is guaranteed for life.

Thanks

A couple means two. £200 x 12 = £2,400.

Silverfox1967

FIREDreamer said:

Silverfox1967 said:

Dazed_and_C0nfused said:

During the course of this thread your DB pension has already increased by 50%.

It started as a couple of hundred pounds per month and is now £3.6k/year.

£3.6k / 12 = ???

£300 = £200 increased by 50%

Who mentioned £200? Couple of hundred, could be 2 could 3

FIREDreamer

Silverfox1967 said:

FIREDreamer said:

Silverfox1967 said:

Dazed_and_C0nfused said:

During the course of this thread your DB pension has already increased by 50%.

It started as a couple of hundred pounds per month and is now £3.6k/year.

£3.6k / 12 = ???

£300 = £200 increased by 50%

Who mentioned £200? Couple of hundred, could be 2 could 3

Couple = 2 (literally)

MarkCarnage

Dazed_and_C0nfused said:

During the course of this thread your DB pension has already increased by 50%.

It started as a couple of hundred pounds per month and is now £3.6k/year.

It's possible that the initial amount was estimate net of tax and the p.a. amount is gross?

Going back to earlier points made by the OP, there is no 'pot' in a DB scheme...the entitlement is to an income stream as defined in the scheme rules, increasing to varying degrees by inflation. The 'pot' is the assets of the Scheme as a whole held in trust to fund the pensions of all members. 

A transfer value is a capital sum, calculated with reference to various factors, most notably the discount rate on the liabilities of the scheme which is based on longer dated gilt yields. The reason that TVs have fallen considerably since 2021 is that long dated gilt yields have increased very considerably, from under 2% to almost 5%. A few years ago, there was a decent case to be made for transfers in quite a number of situations, and I did so myself for a couple of small DB pensions. I did not do so for my core DB pension though. The transfer values of the two smaller ones were compelling, and offered essentially an arbitrage opportunity to take advantage of the (inevitable) upward reversion of gilt yields when it came along. I could now, if I wished (I don't), buy about twice the level of income via an annuity as I could then.

Not sure where the comment from 6 years ago about waiting for 'it' to go up came from? The income from the pension would almost certainly go up in nominal terms anyway, due to inflation linkage on deferred pensions. I don't think you will find any TVs that are higher than 6 years ago for the reasons stated above, and anyone who told you that clearly didn't know what they were talking about. 

Silverfox1967

Marcon said:

Silverfox1967 said:

The value that i will receive each month from this on the latest projection is not large, just a couple of hundred pounds and all i keep getting told is that this is guaranteed for life.

Thanks

A couple means two. £200 x 12 = £2,400.

couple most strictly means two, but it's often used casually to mean much the same thing as a few, which commonly means around two, three, or four—it can be relative to the situation and the size of the numbers under discussion

Marcon

Silverfox1967 said:

I'm currently planning my retirement for around 14 months time and have a number of workplace pensions. One of these is a DB scheme (Final Salary), however the value of this is not really large as it was from when i was with a company in my early days and is based on a relatively low salary.
I'm looking at consolidating a number of my pensions and wish to transfer this out to the others.
The value that i will receive each month from this on the latest projection is not large, just a couple of hundred pounds and all i keep getting told is that this is guaranteed for life.
All well and good, but as no-one can confirm how long i am going to live for, this is not where i wish my funds to be invested. The next point that gets made, is that if i die, my dependent will get a reduced value for the rest of their life.
Again all well and good, but no-one ever mentions that what if my dependent dies before me!
The answer is that the 'pot' that i have just goes back to the main fund, benefitting the scheme and not my children (who are over the age of 23 and will not benefit).
Therefore i wish to transfer my DB scheme into my other funds, to ensure that in the future my dependents and spouse benefit from the funds.
I've explained this to my advisor and he understands my concerns. He has passed on my wishes to an other company who can facilitate this, but they seem to be acting like they have 'god-like' control over my funds. 
In addition to this, they wish to charge me £4k for receiving full advice from them. 
My main gripe is that i do not wish to have full advice, as after working for 30 years as an accountant, I have a good understanding of my desires and wishes, along with the potential risks involved if a fund does not perform well - i will be looking at investing in something that is a cautious risk, so potentially maximising my future returns.
2 questions spring to mind immediately, 
1). Has anyone else encountered this opposition to their wishes?
2). Is the fee being quoted a fair one, based upon the fact that i already know what i want to do and am fully aware of any potential risks in investments?
Thanks

To go back to your original gripe and your original questions....

Investing in something that is a 'cautious risk' doesn't maximise future returns; it reduces risk.

1. Plenty of people, many of whom change their minds once they really understand what they would be giving up by transferring out of a DB scheme, especially at a time when CETVs are anything but 'at their peak'
2. What you do or don't know (or think you do or don't know - not always the same thing!) doesn't decrease the risk the adviser is taking by giving advice on a pension transfer. 

You've been very quick to shout down anyone on this thread who hasn't said something you want to hear, but it might be worth pondering whether those who have actually worked in this field - some of us for decades - have valid points. By all means disregard us, but as you've not really shown any evidence that your grasp of DB pensions, and indeed investments generally, is quite as good as you believe, you might give these observations more than a cursory glance.