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  • FIRST POST
    • johnsmclean
    • By johnsmclean 14th Apr 18, 11:22 AM
    • 30Posts
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    johnsmclean
    Pension Pot Increase
    • #1
    • 14th Apr 18, 11:22 AM
    Pension Pot Increase 14th Apr 18 at 11:22 AM
    Hi,
    a previous employer has told me that my DB pension pot is worth 150000. I am 57 years old. When I turn 60 will the value have increased ? If so, will it increase by RPI ?
Page 1
    • Thrugelmir
    • By Thrugelmir 14th Apr 18, 11:25 AM
    • 61,358 Posts
    • 54,607 Thanks
    Thrugelmir
    • #2
    • 14th Apr 18, 11:25 AM
    • #2
    • 14th Apr 18, 11:25 AM
    Your DB pension has a transfer value not a fund. The transfer value may not increase however the value of your pension benefits may well do.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Brynsam
    • By Brynsam 14th Apr 18, 12:05 PM
    • 1,740 Posts
    • 1,278 Thanks
    Brynsam
    • #3
    • 14th Apr 18, 12:05 PM
    • #3
    • 14th Apr 18, 12:05 PM
    Transfer values fluctuate according to market conditions, and trustees can change the basis of calculation (normally based on professional advice from the scheme actuary). Generally they go up as someone gets closer to retirement age, but that certainly isn't always the case. If a scheme becomes seriously underfunded, transfer values may (temporarily) be legitimately paid at a reduced rate if the trustees follow a fairly lengthy statutory process. If that happens, you will be told this is the case and the trustees will normally be able to give an estimate of when full transfer values will be paid.

    The pension 'revalues' between the time you leave active membership of the scheme and the time you start to draw your benefits. There are certain statutory requirements, but there are also ones which are scheme specific. If you ask the scheme administrators they will be able to confirm.
    • sandsy
    • By sandsy 14th Apr 18, 12:37 PM
    • 1,414 Posts
    • 867 Thanks
    sandsy
    • #4
    • 14th Apr 18, 12:37 PM
    • #4
    • 14th Apr 18, 12:37 PM
    A DB pension gives you a guaranteed income for life. If you choose to take the cash equivalent value, you give that income up. Before you can do so, you must, by law, take professional financial advice as it's generally considered that giving it up is unsuitable for most people.
    • tacpot12
    • By tacpot12 14th Apr 18, 2:27 PM
    • 1,691 Posts
    • 1,433 Thanks
    tacpot12
    • #5
    • 14th Apr 18, 2:27 PM
    • #5
    • 14th Apr 18, 2:27 PM
    As above, the transfer value will not change in line with Inflation, but the Benefits paid usually will.
    • Brynsam
    • By Brynsam 14th Apr 18, 2:41 PM
    • 1,740 Posts
    • 1,278 Thanks
    Brynsam
    • #6
    • 14th Apr 18, 2:41 PM
    • #6
    • 14th Apr 18, 2:41 PM
    A DB pension gives you a guaranteed income for life. If you choose to take the cash equivalent value, you give that income up. Before you can do so, you must, by law, take professional financial advice as it's generally considered that giving it up is unsuitable for most people.
    Originally posted by sandsy
    In case others with lower transfers values are reading this...the legal requirement to receive advice does not apply to DB transfers of 30,000 or less.
    • johnsmclean
    • By johnsmclean 15th Apr 18, 8:46 AM
    • 30 Posts
    • 2 Thanks
    johnsmclean
    • #7
    • 15th Apr 18, 8:46 AM
    • #7
    • 15th Apr 18, 8:46 AM
    Thanks for all replies.
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