Annuity or take the CETV

chuffinnora

Indeed they are it would seem 
I remember receiving an info pack some time ago when one of my small DB schemes was being transferred to another provider. In there was a standard letter that included a CETV value. At the time I thought that looks good, but didn't really bother to investigate.
As it turns out it was at the height of CETV valuations, and probably something worthwhile, even if it could have been actioned.
Those high rates are history for now at least.

Albermarle

SVaz said:

Has anyone *ever* come back on here who has managed to transfer their DB?
I remember plenty of talk of transferring to a Stakeholder over the last few years but I can’t remember anyone actually doing it. 

Most of the answers you got related to people who got a negative recommendation.
However of course some people get a positive recommendation, in which case there would be no problems finding a DC provider to transfer the CETV to. No need to transfer to a Stakeholder pension in this case.
However the numbers  reduced when the rules were tightened up a few years ago, and presumably now have reduced to a trickle as CETV values are way down from their peak.

LHW99

On a different tack - why not marry or enter a civil partnership?

Most DB pensions have some provision for spouse, and dependent children.

Marcon

chuffinnora said:

Marcon said:

If the transfer proceeds OP could take 25% of it as tax free cash, so hardly 'lost' - it would only leave slightly less with which to buy(!) matching benefits.

Jeez relax somewhat obnoxious, my point is perfectly valid. 

A novice reading it would assume they'd somehow lost £24K. Nothing 'obnoxious' about clarifying something which isn't clear.

chuffinnora

No actually you were taking things out of context and being pedantic. By also starting with a silly quip suggesting I said advice was £24k. Hmmmm.

QrizB

murphy10fs said:

The figures are today's figures, the cevt is guaranteed for the next 3 months, and the pension quote is as if I took it now (early) at 56. Thank you for your response.

Per https://www.hl.co.uk/retirement/annuities/best-buy-rates at age 55, a single-life RPI-linked annuity is paying £4229 per £100k. At age 60 it's paying £4610.

 So a £4500 joint-life one, at age 56, would probably cost more than £100k.

In this light, the CETV of £127k seems slghtly under par.

What do people think, annuity or CETV? What would you do?

Take the DB pension, spend less from your DC pots. The money will be there in the DC pot if you need it and can be inherited from there if you don't need it.

LHW99 said:

On a different tack - why not marry or enter a civil partnership?

Most DB pensions have some provision for spouse, and dependent children.

Agreed, If OP and partner aren't already married/civil partners that seems a prudent move.

SVaz

I’ve never seen a poster come back on here who went ahead with advice and had a positive recommendation for transfer,  it would have been ‘big news’ with people wanting to know the specifics of how it came to be approved. 

I might have missed one but it would have been signposted for anyone who came asking afterwards, something like that wouldn’t have just disappeared from the board. 

I do remember on another forum that someone mentioned a firm by name who was supposedly doing their transfer but they vanished into the ether like so many others. 

dunstonh

There are still transfers going on that are advised.   We are just back in the ballpark where around 1 in 10 is suitable to transfer now that CETVs have halved.    

Officer_Dibble

SVaz said:

I’ve never seen a poster come back on here who went ahead with advice and had a positive recommendation for transfer,  it would have been ‘big news’ with people wanting to know the specifics of how it came to be approved. 

I might have missed one but it would have been signposted for anyone who came asking afterwards, something like that wouldn’t have just disappeared from the board. 

I do remember on another forum that someone mentioned a firm by name who was supposedly doing their transfer but they vanished into the ether like so many others. 

I did a CETV transfer back in 2018, with advice and a positive recommendation. The rules were tightening up by then, but as I had a track record of investing and another DB pension payable from 65 (which I'm not transferring) there was no real risk of it being deemed unsuitable. It's gone very well since. I wouldn't be asking for a transfer with current CETV calculations. That was with Tideway, though I've since left their management and gone self-select.

Silvertabby

dunstonh said:

There are still transfers going on that are advised.   We are just back in the ballpark where around 1 in 10 is suitable to transfer now that CETVs have halved.    

Those with a very limited life expectancy, who don't have any eligible dependants who would qualify for survivor's pensions ?