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    • famous5
    • By famous5 12th May 18, 9:24 PM
    • 4Posts
    • 1Thanks
    famous5
    Final salary transfer
    • #1
    • 12th May 18, 9:24 PM
    Final salary transfer 12th May 18 at 9:24 PM
    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.
Page 2
    • Dox
    • By Dox 13th May 18, 2:39 PM
    • 936 Posts
    • 718 Thanks
    Dox
    Not sure of all the "nitty gritty", but find out if you can part and part. Take a portion as final salary still but transfer out the other half or portion. That way you are guaranteed income which should grow by inflation. On the size of your numbers, that would leave a fair chunk to leave to other family members which won't cease when you both die (sorry if bit blunt).
    Originally posted by GSP
    If the financial adviser has done their job properly, they will have established whether or not the scheme will permit partial transfers. Most don't because the admin is such a pain.

    OP, not clear what you mean by your comment that you've 'talked to' a financial adviser. I presume you mean they have carried out a full transfer analysis, fact find etc and provided you with a written report? Unless they are appropriately qualified and have been through the correct procedure, you won't be able to transfer out because they won't be able to provide confirmation to the trustees that you've had the required advice from a regulated person with the right permissions.

    If all that hasn't yet been done, there is little chance of getting through the necessary hoops before the 3-month deadline for acceptance of the CETV expires.
    • GSP
    • By GSP 13th May 18, 4:38 PM
    • 191 Posts
    • 47 Thanks
    GSP
    Depending who is looking after your scheme, you may be able to run a report each day online yourself with a new CETV figure calculated. Which means you can pick the best figure as each are valid for 3 months.
    • Dox
    • By Dox 13th May 18, 5:24 PM
    • 936 Posts
    • 718 Thanks
    Dox
    Depending who is looking after your scheme, you may be able to run a report each day online yourself with a new CETV figure calculated. Which means you can pick the best figure as each are valid for 3 months.
    Originally posted by GSP
    Doesn't work like that. Online figures will be labelled as 'for illustration only' or something similar. Also financial advice (including any transfer analysis) must be based on a definite CETV, so if the transfer value is £30K+ the adviser wouldn't be able to sign off on such a pick'n'mix approach and the transfer couldn't proceed.
    • GSP
    • By GSP 13th May 18, 7:01 PM
    • 191 Posts
    • 47 Thanks
    GSP
    I ran reports on a daily basis for four months and chose the highest figure as long as it was within the 3 month maturity date. That figure was good on the system like all the others I ran.
    Again, depends on who is looking after the scheme.
    • Dox
    • By Dox 13th May 18, 7:19 PM
    • 936 Posts
    • 718 Thanks
    Dox
    I ran reports on a daily basis for four months and chose the highest figure as long as it was within the 3 month maturity date. That figure was good on the system like all the others I ran.
    Again, depends on who is looking after the scheme.
    Originally posted by GSP
    So how did your financial adviser deal with the transfer analysis....?
    • Brynsam
    • By Brynsam 13th May 18, 8:26 PM
    • 1,562 Posts
    • 1,135 Thanks
    Brynsam
    I ran reports on a daily basis for four months and chose the highest figure as long as it was within the 3 month maturity date. That figure was good on the system like all the others I ran.
    Again, depends on who is looking after the scheme.
    Originally posted by GSP
    Fascinated by this! What was the scheme and who administered it?
  • jamesd
    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?
    Originally posted by famous5
    You're probably right about getting at least as much as the full single tier rate, but check for both of you.

    There's no chance that you will get a maximum full state pension, that's more than £250 a week for a high earner who wasn't contracted out of the earnings-related part, as you were. But about £160 a week for each of you should be achievable.

    It's often easy to fix so find out then let us know and w can suggest what to do.
  • jamesd
    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.
    Originally posted by famous5
    That seems reasonable. If the Guyton-Klinger drawdown rules with 90% success rate are used you could expect an initial income of around 5% of the pot, say £50,000 a year if retiring soon, varying gradually based on investment performance but unlikely to go below £32k.

    Given that you expect 8k from the state pension later you could bump that up to around £54k now and after state pension age from the two combined, taking more from the pot now and less from it once your state pension starts..

    90% success rate means that in the worst 10% of historic cases a bigger bad investment results drop than is built in to the G-K rules would be needed. In the UK the worst cases were for those affected by the second world war. With average results the income would increase.
    Last edited by jamesd; 14-05-2018 at 12:27 AM.
    • Pun
    • By Pun 15th May 18, 3:02 PM
    • 685 Posts
    • 570 Thanks
    Pun
    I ran reports on a daily basis for four months and chose the highest figure as long as it was within the 3 month maturity date. That figure was good on the system like all the others I ran.
    Again, depends on who is looking after the scheme.
    Originally posted by GSP
    CETVs need to be formally issued by the scheme. You might be able to apply for one when the indicative figures are looking good (although the scheme then has 3 months to issue a CETV, so no guarantees the figures will hold up), but you can't go for the pick your own method as you seem to be suggesting.
    • GSP
    • By GSP 15th May 18, 5:58 PM
    • 191 Posts
    • 47 Thanks
    GSP
    Well my figures were honoured from the system and report I ran.
    I received one paper copy of everything with the all important figure and it was much the same as the figure produced off the system for that day.
    Goes to suggest those looking after the scheme were quite happy of the accuracy of their information produced and available.
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