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  • FIRST POST
    • FIRSTTIMER
    • By FIRSTTIMER 10th Mar 18, 11:11 AM
    • 325Posts
    • 53Thanks
    FIRSTTIMER
    Should I transfer out an old employer pension ?
    • #1
    • 10th Mar 18, 11:11 AM
    Should I transfer out an old employer pension ? 10th Mar 18 at 11:11 AM
    Hi,


    I currently have an old defined benefit pension with a previous employer with a CETV value of approx. 60k. This pension I have built up increases by CPI and RPI up a max of 5% each year. Is it wise to leave it where it is or should I be investing it into some private scheme? I have a new pension with a new employer that doesn't allow transfers in...


    Thanks,
    Savings 10000
Page 1
    • Tcquins
    • By Tcquins 10th Mar 18, 11:44 AM
    • 52 Posts
    • 31 Thanks
    Tcquins
    • #2
    • 10th Mar 18, 11:44 AM
    • #2
    • 10th Mar 18, 11:44 AM
    You!!!8217;ll need to get advice from a financial adviser/IFA.

    It all depends on your circumstances as to whether it would be beneficial and whether the transfer is !!!8216;good value!!!8217;.

    Giving up a guaranteed inflation proofed income in retirement is not to be done on a whim.

    I think you will struggle though given the value because most IFAs will have a minimum floor with DB advice. Most likely 2k plus, with possibly 1k chargeable whether they advise it can go ahead or not. This quickly makes the transfer less valuable to you- and often a non-starter.
    • Alexland
    • By Alexland 10th Mar 18, 1:31 PM
    • 2,389 Posts
    • 1,791 Thanks
    Alexland
    • #3
    • 10th Mar 18, 1:31 PM
    • #3
    • 10th Mar 18, 1:31 PM
    I agree you are required to use an IFA but that will be expensive. Without understanding if you have unique circumstances I don't see the harm in leaving it alone and using it as the foundation of your other pension provision.
    • cloud_dog
    • By cloud_dog 10th Mar 18, 4:25 PM
    • 3,698 Posts
    • 2,192 Thanks
    cloud_dog
    • #4
    • 10th Mar 18, 4:25 PM
    • #4
    • 10th Mar 18, 4:25 PM
    Hi,


    I currently have an old defined benefit pension with a previous employer with a CETV value of approx. 60k. This pension I have built up increases by CPI and RPI up a max of 5% each year. Is it wise to leave it where it is or should I be investing it into some private scheme? I have a new pension with a new employer that doesn't allow transfers in...


    Thanks,
    Originally posted by FIRSTTIMER
    So as to be able to try to put some perspective around your query, what is the annual pension at normal retirement age?
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • Brynsam
    • By Brynsam 10th Mar 18, 4:29 PM
    • 956 Posts
    • 630 Thanks
    Brynsam
    • #5
    • 10th Mar 18, 4:29 PM
    • #5
    • 10th Mar 18, 4:29 PM
    So as to be able to try to put some perspective around your query, what is the annual pension at normal retirement age?
    Originally posted by cloud_dog
    ...and how old are you now/what is the scheme's retirement age?
    • xylophone
    • By xylophone 10th Mar 18, 4:31 PM
    • 25,374 Posts
    • 14,970 Thanks
    xylophone
    • #6
    • 10th Mar 18, 4:31 PM
    • #6
    • 10th Mar 18, 4:31 PM
    https://www.royallondon.com/Global/documents/GoodWithYourMoney/COMPANY-PENSIONS-FIVE-REASONS-TO-TRANSFER-OUT-AND-FIVE-REASONS-NOT-TO.pdf
    • AnotherJoe
    • By AnotherJoe 10th Mar 18, 4:32 PM
    • 9,436 Posts
    • 10,442 Thanks
    AnotherJoe
    • #7
    • 10th Mar 18, 4:32 PM
    • #7
    • 10th Mar 18, 4:32 PM
    Hi,


    I currently have an old defined benefit pension with a previous employer with a CETV value of approx. 60k. This pension I have built up increases by CPI and RPI up a max of 5% each year. Is it wise to leave it where it is or should I be investing it into some private scheme? I have a new pension with a new employer that doesn't allow transfers in...


    Thanks,
    Originally posted by FIRSTTIMER
    Without knowing what pension this buys no answer is possible !

    We dont know if the pension will be 1 a year (if so, transfer out), 10k a year (if so, keep it) or something in between and if so, how much and at what ages. Or what age you are now and when you'd like to retire.
    • FIRSTTIMER
    • By FIRSTTIMER 10th Mar 18, 7:05 PM
    • 325 Posts
    • 53 Thanks
    FIRSTTIMER
    • #8
    • 10th Mar 18, 7:05 PM
    • #8
    • 10th Mar 18, 7:05 PM
    Hi,


    Thanks for this...its currently stands as this....


    CETV Value - 60k


    Age 31


    Retirement at 55
    15k and pension of 3k per year or 5.5k per year. Its a defined benefit scheme increase maximum of cpi/rpi up to max of 5%.


    I only requested a 55 retirement quote.
    Savings 10000
    • mgdavid
    • By mgdavid 10th Mar 18, 7:12 PM
    • 5,594 Posts
    • 4,916 Thanks
    mgdavid
    • #9
    • 10th Mar 18, 7:12 PM
    • #9
    • 10th Mar 18, 7:12 PM
    Hi,


    Thanks for this...its currently stands as this....
    CETV Value - 60k
    Age 31
    Retirement at 55
    15k and pension of 3k per year or 5.5k per year. Its a defined benefit scheme increase maximum of cpi/rpi up to max of 5%.

    I only requested a 55 retirement quote.
    Originally posted by FIRSTTIMER
    Please confirm what the Scheme Normal retirement age (NRA) is.
    The questions that get the best answers are the questions that give most detail....
    • AnotherJoe
    • By AnotherJoe 10th Mar 18, 7:55 PM
    • 9,436 Posts
    • 10,442 Thanks
    AnotherJoe
    You could never sustain 5.5k a year from a lump sum of 60k (or alternatively 3k from 45k) let alone with up to 5% increases figured in.
    • Alexland
    • By Alexland 10th Mar 18, 8:29 PM
    • 2,389 Posts
    • 1,791 Thanks
    Alexland
    For the average person that scheme looks like it should not be changed. You might struggle to find an IFA at any cost who would want the liability from being involved in transfering that scheme out unless you have very special circumstances.
    • FIRSTTIMER
    • By FIRSTTIMER 10th Mar 18, 8:35 PM
    • 325 Posts
    • 53 Thanks
    FIRSTTIMER
    NPA is 65 - so this scheme is worth keeping....
    Savings 10000
    • AlanP
    • By AlanP 10th Mar 18, 9:17 PM
    • 1,182 Posts
    • 851 Thanks
    AlanP
    Yes. For a comparison I have one I am working through with an IFA at the moment.

    8.8k at age 60 so would have been approx 6.6k at 55 best case. No inflation increases apart from previous 1988 gmp element so about 25% of the pension in this case.

    170k CETV and it isn't a no brained to transfer that out.

    5.5k at age 55 with up to 5% cpi/rpi is equivalent to a lot, lot more than 60k in my opinion.
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