Financial Advice for Cashing in a DB Pension

DRS1

Presumably it is not possible to transfer the small DB scheme benefits to one of the larger DB Schemes?

Cobbler_tone

Good to see some classic MSE Forum 'greatest hits semantics' appearing, which TBF they do on a daily basis for the regular readers.

"There is no pot" well there kinda is because there is a value. My DB scheme booklet also references the word 'pot'.
"There is no 25% of the pot", there is a tax free lump sum up to 25%, which can normally be adjusted. CETV/pension value/pot, does it really matter?

I do appreciate that some struggle to know the difference between a DC and DB but not sure some the stuff needs pulling up every time.

As for the accountant comments. A bit harsh but my OH is an accountant whose mental arithmetic is awful and I wouldn't trust her to get involved in my pension planning. 

You can kind of see why the 'rules' work against people in this situation but it is outweighed by why the rules are in place IMO. Maybe the £30k is a limit which should be reviewed and increased (not sure on its history), after all, £30k will be worth peanuts in 10 years time.

The flipside is that I have learnt tons on here, so maybe the repetitiveness is just the nature of the forum. Drill it home!   

The OP would be better off accessing/raising the required money from elsewhere and paying it off (if needed) with the variety of DB pensions! It'll be more hassle and cost than it is worth. To save time, the best advice is normally to listen to Marcon.

Mr_Benn

"Are you sure your an accountant"     cheered me up anyway.

eastcorkram

@Cobbler_tone

Feel free to send me £30k in ten years time. 

wjr4

Blumonday said:

We are both qualified accountants but I assume that won't count for anything or provide any alternative approach? Thanks for any advice!

You’re an accountant, not a financial adviser who is a pension transfer specialist. Completely different roles and responsibilities. 

Albermarle

You can kind of see why the 'rules' work against people in this situation but it is outweighed by why the rules are in place IMO. Maybe the £30k is a limit which should be reviewed and increased (not sure on its history), after all, £30k will be worth peanuts in 10 years time.

The idea of protecting vulnerable owners of DB pensions making rash pressurised decisions to switch their money out ( which is what used to happen) is a good one.
Have the rules got too strict - probably
Would increasing the £30K be a good idea - probably.

Cobbler_tone

eastcorkram said:

@Cobbler_tone

Feel free to send me £30k in ten years time. 

Sure, loose change. I'll send you a postal order. 

Cobbler_tone

Albermarle said:

You can kind of see why the 'rules' work against people in this situation but it is outweighed by why the rules are in place IMO. Maybe the £30k is a limit which should be reviewed and increased (not sure on its history), after all, £30k will be worth peanuts in 10 years time.

The idea of protecting vulnerable owners of DB pensions making rash pressurised decisions to switch their money out ( which is what used to happen) is a good one.
Have the rules got too strict - probably
Would increasing the £30K be a good idea - probably.

Aye...it is a bit like tax brackets 

dunstonh

I do appreciate that some struggle to know the difference between a DC and DB but not sure some the stuff needs pulling up every time.

In the case of the OP, they are clearly confused and have made references to modelling their outcomes.   So pointing out the mistakes they have made in their assumptions is not unreasonable.

The flipside is that I have learnt tons on here, so maybe the repetitiveness is just the nature of the forum. Drill it home!   

It is very easy for regulars to get bored with certain repetitiveness.    That can lead to sometimes dismissive responses or boredom with repetitive statements.  However, for the op, there is no repetition as this is the first time for them that they are being corrected.

ali_bear

Don't be afraid of repeating. There is comfort in the familiar and those of us who read a lot on here are able to skim, or disregard entire threads with ease.