DB pension transfer......update
Comments
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A little greediness creeping in to the mind perhaps?0
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I have a similar dilemma myself (have posted mine on here) , however my DB is £26k and spouse £15k
Normally, like in this case it is probably a bit more 50:50, and depends on personal circumstances and personality . I had an offer of £475K for £16 K ( RPI linked 2/3rds spouse ) and turned it down although it was tempting. ...0 -
Kempstongirlsboy wrote: »My wife is 8 years younger than me and has no pension to mention so the transfer out would also ensure her financial position should I pass away. She’d only get 2/3rds of my DB if we left it in and the kids get nothing.0
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Albermarle wrote: »If you assume that the DB pension of £36K is what it will pay at 60, then if he took it early ( say for sake of argument at 55) it would be significantly less, which gives a rather more striking multiple.
According to expert opinion on another thread this is strictly how the multiple should be calculated .
On the other side another poster was right to point out that some of the gloss could come off , due to incurring LTA penalties . especially as he already has a DC pot .
But I should probably have emphasised the appeal of 36k risk free income vs expenditure over the multiple.0 -
How do you quote a previous post ?0
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How do you quote a previous post ?
You highlight the relevant part by clicking and dragging your mouse across it . Then copy this by right clicking on it and selecting copy .
Go to your new post . rightclick and select paste .
Highlight again in your post and then click on the icon on the right above , next to the letter symbol.0 -
Albermarle wrote: »Mick 70 you have an even much higher CETV , even though the pension is lower, so an exceptional situation and an easy decision.
Normally, like in this case it is probably a bit more 50:50, and depends on personal circumstances and personality . I had an offer of £475K for £16 K ( RPI linked 2/3rds spouse ) and turned it down although it was tempting. ...0 -
Albermarle wrote: »Mick 70 you have an even much higher CETV , even though the pension is lower, so an exceptional situation and an easy decision.
Normally, like in this case it is probably a bit more 50:50, and depends on personal circumstances and personality . I had an offer of £475K for £16 K ( RPI linked 2/3rds spouse ) and turned it down although it was tempting. ...
I was quoted a £396k CETV at age 55 for an early retirement pension of £9,500 with a 2/3rds widows pension and RPI on the non GMP element. The GMP element is a minuscule amount.
That is a multiplier of over 40.
I decided to take a PCLS of about £49k and a reduced pension of £7,500 with an unchanged / unreduced spouse pension.
The pension starts next month.
The early retirement is also a no brainer. I would have to live to 88 to be worse off taking the early pension (though a lower age of about 82 at higher inflation assumptions).
NRA is 62 and the early retirement factor is 3% per annum compound (months counted as part year).
At least this amount of pension income is immune to moronic tweets.0 -
ffacoffipawb wrote: »I was quoted a £396k CETV at age 55 for an early retirement pension of £9,500 with a 2/3rds widows pension and RPI on the non GMP element. The GMP element is a minuscule amount.
That is a multiplier of over 40.
I decided to take a PCLS of about £49k and a reduced pension of £7,500 with an unchanged / unreduced spouse pension.
The pension starts next month.
The early retirement is also a no brainer. I would have to live to 88 to be worse off taking the early pension (though a lower age of about 82 at higher inflation assumptions).
NRA is 62 and the early retirement factor is 3% per annum compound (months counted as part year).
At least this amount of pension income is immune to moronic tweets.0
This discussion has been closed.
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