Transferring final salary pension?

But you're 43 and that's at 55. The UK historic average stock market growth is a bit over 5% a year plus inflation before costs, so say 4%. That would increase the real value of £108,000 taken now by 1.6 times to £172,800 and £9,116 income.

If you were to wait until 65 that'd be 2.37 times, to £255,960 and £13,565 income.

But a deferred final salary pension should also have some increases for inflation. ie it tries to preserve the buying power of the pension you had earned at the point of deferral, and the OP mentioned that the £6296 was index linked. So the actual amount paid would be greater, and not dependent on there being no long period of poor stockmarket returns

kidmugsy wrote: »

Be sure to leave your son the priceless benefit of not having to worry about his mother's finances at an age when he will be worrying about his own, his widow's and and his children's.

Will he worry more if at 65 she starts on £6,296 that won't increase or £13,565 that usually will? Both plus around £8,000 of state pension.

Of course she can - and I think should - defer her state pension to convert some capital into more guaranteed income. Assuming £8,000 state pension, deferring for ten years would cost £80,000 of capital and get £4,640 of extra guaranteed income. At the cost of about £4,240 of non-guaranteed income. That's 74% of the DB income guaranteed and still a lot more on top. But sacrificing the potential for that non-guaranteed income to increase.

Since she doesn't want to wait to 65, the transfer gives the flexibility to partly fund not waiting and still start to convert to guaranteed income later.