Moving Private Pension 6 months before maturity

dgbshifnal

I realise that no one can give a yes/no answer to this query, but I would appreciate any thoughts.

I have a couple of low value with-profits plans due to mature in November this year ~(2008).
I have just joined a local government authority which would allow me to transfer the plans to its final salary scheme (but won't give advice on it, or indicate a transfer value).
I am only likely to remain in local government for two years, and would suffer an early retirement penalty of about 20% on leaving.

Is it a "no-brainer" to leave things as they are or could there be an upside in transferring?

dunstonh

Is it a "no-brainer" to leave things as they are or could there be an upside in transferring?

Impossible to say without figures and data.

The no brainer bit would be to choose the option that gives you the best benefits. The LGPS normally give you an indication of the years/months purchased from the transfer values of the pensions. Whilst you wont give you advice I would question why they are not giving you a comparable benefit.

EdInvestor

dgbshifnal wrote: »

I have a couple of low value with-profits plans due to mature in November this year ~(2008).

Do they have guaranteed annuity rates attached?If so, what percentage?

dgbshifnal

Dunstonh: they will give me a comparison, but only after I get an official letter from each plan identifying the exact value, they won't give me an indicative "for example"

EdInvestor: I believe one of them has a 4% guarantee.

EdInvestor

dgbshifnal wrote: »

Dunstonh: they will give me a comparison, but only after I get an official letter from each plan identifying the exact value, they won't give me an indicative "for example"

You'll have to get the letter then.

EdInvestor: I believe one of them has a 4% guarantee.

Is that a Standard life plan? If so it's probably a guaranteed annual return, rather than a guaranteed annuity rate - the latter are usually more like 10%.