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    • ssmi
    • By ssmi 15th Jun 17, 5:44 PM
    • 33Posts
    • 3Thanks
    Transfer from Final Salary Scheme - Am I being naive?
    • #1
    • 15th Jun 17, 5:44 PM
    Transfer from Final Salary Scheme - Am I being naive? 15th Jun 17 at 5:44 PM
    I'm really asking for feedback on my thought process - I am no financial whiz and I want to know if I am missing something. I am 57 my husband is 62. Between us we have a few pension pots worth about 250K. I will get a reduced state pension due to lack of contributions but see no point it topping up as I believe I will lose any extra income in tax. He will get full state pension and still works part time. We are mortgage free and have a couple of properties we rent out, also mortgage free. The question really is over a final salary scheme I have. I was quoted a couple of years ago 22K pa to take at 65. I have now asked for a transfer value and been offered 397K. In my simplistic view this would mean I would have to live to 83 roughly to break even. I was thinking of taking the money now, taking 25% of it tax free to add to some other money we have, buying another property and then doing something with the remaining 75%. Is it really as simple as that or am I missing something? I know I will need to seek formal advice but wanted some informal view before I start the process. Thanks in advance for any pointers.
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    • ssmi
    • By ssmi 16th Jun 17, 1:39 PM
    • 33 Posts
    • 3 Thanks
    And bostonerimus those are really interesting figures, thank you.
    • Silvertabby
    • By Silvertabby 16th Jun 17, 1:51 PM
    • 2,737 Posts
    • 3,916 Thanks
    Thank you Silvertabby, it is a private scheme but it would have had members transferred into it from government schemes if that would make a difference?
    Not as such, but is your scheme part of the 'transfer club'? Most - but not all - members are public sector but there are some strange anomolies.

    x20 is very low for a private scheme which uses the link with gilts. I would query it with them.
    • ssmi
    • By ssmi 16th Jun 17, 4:34 PM
    • 33 Posts
    • 3 Thanks
    Thank you Silvertabby. It's a private company scheme so I will ask them to check the figures - they took a long time to respond so not sure how many people have approached them before now.
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