Financial adviser for a DB transfer

daveyjp

My usual response. Set out what you want or need to achieve and discuss with an adviser how your current DB pension arrangement can be used to achieve those aims.

Suzycoll

Going off on a tangent for a minute

Can you claim carers allowance for looking after your wife ?

https://www.gov.uk/carers-allowance

Carrot49

https://forums.moneysavingexpert.com/discussion/comment/82020006#Comment_82020006

I was hoping to find an adviser who would do the transfer before I get a new quote from the DB scheme as the quote is only guaranteed for 3 months and the DB scheme management are notorious for being slow to complete paperwork. Even if it is 30% lower my situation would allow me to invest in my personal pension and dip into it as and when required meanwhile gaining in value. The DB scheme gives me no flexibility.

kempiejon

I think it's not the actuarial reduction here. I took that as CETV values (not age reduction) which I think of as an inverse function of gilt yields. If we took BofE base rates as roughly analogous in 2021 Covid cutting reduced rates from 0.75 to 0.1% today we're at 3.75%. That increase in rates since 2021 will have reduced the capital needed to produce a similar income.

QrizB

Let's for a moment assume your DB pension is expected to pay out £7.5k pa at 65, and that by taking it early at 59 it pays out £5k pa.

You want to transfer and:

invest in my personal pension and dip into it as and when required meanwhile gaining in value. The DB scheme gives me no flexibility.

Assuming you're going to want at least £5k pa in income, taking the DB and using it as an income floor means withdrawing £5k pa less from your existing SIPP.

And as for the:

meanwhile gaining in value.

That's not a given. You could see a 40% fall that takes a decade to recover.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82021720#Comment_82021720

That is a very big reduction factor !

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82021786#Comment_82021786

A decimal point missing perhaps

But yes that sort of reduction could fairly be called a penalty.

QrizB

Missing decimal, fixed now :)

ian16527

Keep the DB pension is the best response and you should be able to get some TFLS from it when you take it, It is secure income and as some else has said will underpin your SIPP