Nationwide pension scheme

Dick_here

OH has recently left them after 3 years. She got the pension stuff today, it has a transfer value of £4275 currently. Should she leave it there - they're projecting £1500pa from it in 30 years time at 3% inflation - or is it better to transfer ? If so, where to ?

EdInvestor

Leave it, It's a guaranteed F/S pension which will rise by up to 5% or inflation p.a. at no risk to you.

bigbloke45

If the pension has spouses benefits built in, you can multiply the projected pension by, say 20 or 25 to arrive at a fund needed to produce the projected pension of £1,500 a year.

At 3% inflation you would need a fund of £30,000 (6.71% annual growth) or £37,500 (7.51% annual growth)

If inflation kicks off, then a guaranteed growth in the preserved pension of up to 5% isn't going to be worth a candle, but an equity investment should cope as shares increase in value lot's more when inflation is high.

At the moment, I tend to agree with EdInvestor; better to wait and see.

Good luck, again!

Dick_here

Thanks guys. I've seen it's a 1/54ths scheme too, that's pretty good isn't it ?

wiseradvisor

EdInvestor wrote: »

Leave it, It's a guaranteed F/S pension which will rise by up to 5% or inflation p.a. at no risk to you.

I am also agree with what EdInvestor said. :T

Dithering_Dad

wiseradvisor wrote: »

I am also agree with what EdInvestor said. :T

I am also certain that you have an unapproved link in your signature and the only reason you posted in this thread was the hope that people would click on it.

I am haven't clicked on it and I am would advise others not to do so!

Dick_here

wiseradvisor wrote: »

I am also agree with what EdInvestor said. :T

Could you repeat that in English, please ?