The Lemon Fool

I have an old pension thats only worth 2k a year as a pension - and its one of those old school safe investment things which makes it quiet secure.

However they give it a value of £250k which sounds to me a better bet to transfer to a private pension and then drawdown as much as possible and live of the 'winnings'
even paying the tax at getting more.
My idea that it is an amount I could live on for years or invest for prfit to live on for longer
or take 25% to live on for year or 2 and leave the rest in that pot

I think the swinger is the saftey net and the fact it gives a spouse pension as well - which my current private pot would not.

I know I need to talk to a FA but I thought I might canvas some other opinions than just the one.

stooz wrote:I have an old pension thats only worth 2k a year as a pension...

However they give it a value of £250k which sounds...

Astounding -- or a mistake. Before you do anything else I'd suggest asking them to double check and confirm, or otherwise, those figures!

stooz wrote:I have an old pension thats only worth 2k a year as a pension - and its one of those old school safe investment things which makes it quiet secure.

However they give it a value of £250k which sounds to me a better bet to transfer to a private pension and then drawdown as much as possible and live of the 'winnings'
even paying the tax at getting more.
My idea that it is an amount I could live on for years or invest for prfit to live on for longer
or take 25% to live on for year or 2 and leave the rest in that pot

I think the swinger is the saftey net and the fact it gives a spouse pension as well - which my current private pot would not.

I know I need to talk to a FA but I thought I might canvas some other opinions than just the one.

It makes no sense. A 2k pension needs a far smaller pot, so it's out by a factor of ?5?

It must have that value for a reason, is it index linked?

Lanark wrote:It must have that value for a reason, is it index linked?

Most DB pensions are, but anything over a 30x multiple is starting to be generous.


Scott.

I will check those figures........

You could safely get £7000 pa from a stocks and shares portfolio of £250000 and keep the capital intact(in fact it will probably grow)
Is that enough to compensate for “safety “ and a wife’s pension?
Probably-if you have some knowledge of investing
You have to then manage the investment/pension yourself -are you knowledgeable enough to do this?
It then passes to your wife or your heirs on your death
xxd09

Currently a primer on the whole pension transfer process posted on Monevator.com
Well worth a read for an investor in your position
Gives chapter and verse
xxd09

Ok. I've checked. Sorry. It's a value of £174k to a pension of £2865.00 a year
It's adb. But like you suggest I will never get my 174k back in my life time, so having it in my own bank/investment is my preference

stooz wrote: It's a value of £174k to a pension of £2865.00 a year

That's still an eye watering multiplier. You may still want to check what they mean by £ 2865 a year. Defined Benefit income amounts are usually revalued with inflation from when you left the scheme to when you eventually retire. Depending on when they measure the £ 2865, it might be quite a bit more when you reach retirement age.

yes its a multiplier of 61 times , seems high. I have the same issue my multiplier is 40 to 50x. Good luck with the FA though they they will want £5,220/3% to sign off the transfer and you can't transfer without their sign off.

A colleague has a similar dilemma, £4.5k pa at 60 or £189k transfer value now. He would like to transfer!

Can anybody recommend an IFA who would do the necessary and advise the costs involved........?

YeeWo wrote:A colleague has a similar dilemma, £4.5k pa at 60 or £189k transfer value now. He would like to transfer!

Can anybody recommend an IFA who would do the necessary and advise the costs involved........?

I transferred a small DB pension a year or so ago. I used a company called "First Equitable"

https://www.first-equitable.co.uk/final ... er-advice/

I found them a professional outfit to deal with. The whole process was relatively painless.