I would guess that you would fall outside the DB valuation rules if you transfer out so the CETV would be in point, that would be logical, but not something I have ever looked at so could be completely wrong.

Remember that £28k income escalates every year, even at a modest 2.5% p/a that would be £59k at age 75

does it? i thought that the figure they gave you on retirement day was the figure you get for life, that it was set. thats a bit better then if it goes up annually…..

Thanks BDB, really useful thing for me to factor in. I suppose I’m thinking my main call on funds will be for the first 15 years from 55 to 70 by which time my state pension will have kicked in then from 70 onwards spend will be greatly reduced. I do have other investments and an old pension currently worth £100k but lots to think about.

does it? i thought that the figure they gave you on retirement day was the figure you get for life, that it was set. thats a bit better then if it goes up annually…..

Normally, with DB, pensions there is an RPI / CPI based escalation built in, so it increases year on year to roughly match the cost of living. You also likely get a 50% pension for a surviving spouse. Exact terms depend on the scheme, but most DB schemes are pretty generous.

Sorry guys but can i jump in with a query please? I currently have my employee pension plus another 3 from previous employers- although one is noted as a SIPP and the other 2 are Personal Pensions? I went to see an IFA last week and they were suggesting my money isn’t invested in the best way and also that the recommendation I had from Portafina wasnt much better ( this was indicated on a graph showing last 5 years performance etc against their current recommended funds) whilst they said there were no guarantees they suggested that i should consider consolidating the 3 pots and look at better investment opportunities based on my attitude to risk etc. with their help.

They quoted £5k for the initial advise based on a pot ( excluding current employer) of £260k and then 1% for active management per annum- is this reasonable or should I consider other avenues ?

Hope that makes sense- I consider myself averagely intelligent but the pension world seems designed to confuse…….

They sounds like SIPPs ie just cash pots with your name on, in which case you can just consolidate them yourself, just fill in one form per SIPP. Picking a handful of funds to invest in based on your risk profile is pretty straight forward, you could crowd source the set on STW….

£5k seems very steep for that (IMO).

Pop Larkin, sounds like all your pensions are defined contribution or DC pots. The level of research and time to advise on this type of pension is vastly less than defined benefit pensions (DB). Unlike DB pensions over £30k, there is no statutory requirement to seek advice and if you are financially savvy, you could consolidate these yourself for no charge. However, you indicated you are not so advice would be recommended.

£5k sounds rich for this type of advice,I would suggest half that would be more reasonable.

In relation to ongoing charges, you have no obligation to take this service and you’ve got to challenge the IFA what you are getting for your 1% a year to make this value for money; roughly £250 a month is a lot for potentially a short report saying your funds are doing well 😉

@juanking

In your situation I would transfer out in a heartbeat.

To be blunt, if it all goes tits up for you, your family get the lot , free of inheritance tax.
It also gives you the freedom to spend more sooner and be far more flexible.

Thats not strictly true brads, if you die within 2 years of transfer HMRC can treat the transferred sum as part of your estate for IHT purposes.

@juanking, the first part of the transfer process is ‘triage’, this is basically an impartial education on the potential benefits, drawbacks and risks of pension transfer. Most firms offer this service free of charge and it is intended to help you decide whether transfer may meet your objectives before engaging in the expensive advice process.

Thanks boys. Even though this is 7 years away it’s at the forefront of my mind as we are all currently under consultation in work and if I were made redundant I’m toying with the idea of doing something fun instead of working.

I would have adequate funds to clear mortgage and see us to 55 but of course this would only be possible if I have sufficient provision for retirement.

I too am in Scotland, sounds like we could do a collective consultation!

Apologies for the delay but thanks footflaps and bigdugsbaws