Final salary transfer

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famous5
famous5 Posts: 4 Newbie
in Pensions, annuities & retirement planning
Hello all
I am almost 57 and looking to finish work. I have a good final salary scheme which would pay around £40K at normal retirement or £32K if I went early soon. The CETV offer is around £1 million. I have little financial experience so have talked to an IFA who has advised me to take the transfer and finish. Where everyone’s views please? Appreciate any thoughts.
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  • xylophone
    xylophone Posts: 44,420 Forumite
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    https://www.royallondon.com/Global/documents/GoodWithYourMoney/COMPANY-PENSIONS-FIVE-REASONS-TO-TRANSFER-OUT-AND-FIVE-REASONS-NOT-TO.pdf
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    edited 12 May 2018 at 10:10PM
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    famous5 wrote: »
    Hello all
    I am almost 57 and looking to finish work. I have a good final salary scheme which would pay around £40K at normal retirement or £32K if I went early soon. The CETV offer is around £1 million. I have little financial experience so have talked to an IFA who has advised me to take the transfer and finish. Where everyone!!!8217;s views please? Appreciate any thoughts.

    Are you given to anxiety? Your eventual State Pension? Married? Wife's pension arrangements? Your ambitions for retirement? Mortgage already paid off? Any current or prospective costs involving children? Or parents or parents-in-law?

    What's the minimum after-tax annual income you seek?
    Free the dunston one next time too.
  • Brynsam
    Brynsam Posts: 3,643 Forumite
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    Why do you think strangers are better placed to comment than a professional adviser who has done a full fact find? This sort of uninformed straw poll is just stupid.
  • dunstonh
    dunstonh Posts: 116,378 Forumite
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    Where everyone!!!8217;s views please?

    It will either be a good idea or a bad idea. Not able to tell based on the limited information given.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Dox
    Dox Posts: 3,116 Forumite
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    What are you trying to achieve? What's your attitude to risk? Spouse? Children? Mortgage? IHT concerns? Worried about employer covenant?

    Why bother to talk to a professional when you can have guesswork from people who know nothing about you or your circumstances.
  • famous5
    famous5 Posts: 4 Newbie
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    OK so I realsed I didn't give enough information.
    I expect to receive full state pension when the time comes, I am married but wife has no pension other than state. Children are grown up and essentially little support required and mortgage will be paid off in a couple of months time. I am looking for a comfortable retirement but nothing extravagant. I am healthy as is my wife.
  • MK62
    MK62 Posts: 1,448 Forumite
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    It's a tough question to answer tbh, given the info.

    What are the death benefits of your current pension?
    Given that your wife has only the state pension, then provision for her would need to a be priority imho.
  • Daniel54
    Daniel54 Posts: 833 Forumite
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    famous5 wrote: »
    I expect to receive full state pension when the time comes, I am married but wife has no pension other than state.

    Have you both obtained a state pension forecast? In your case many years contracted out may mean you need more post 2016 contributions,but everyone's situation is different.I assume you have established your state pension ages?
  • famous5
    famous5 Posts: 4 Newbie
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    Thanks for your reply - my wife would only get only 50% of pension salary if i die (and if she dies then nothing to pass on) - this is one of the reasons why I am considering the transfer.
  • famous5
    famous5 Posts: 4 Newbie
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    Thank you for your reply. I have not obtained a SP forecast. Not sure what you mean by 'contracted out?" - I have paid NI for 38 years so Im assuming I would get full state pension. Have i misunderstood?
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