Covid 19 pension transfer values

[CAH706]

Hi

I'm mid way through taking my final salary out....forgetting the stock market position for now....what impact with the current financial position have on my transfer value?

Will it go up due to guilt prices?

I haven't got my latest quote but when I do I get a value that is guaranteed for 60 days. I'm thinking I get the value now but delay the transfer a little.

Any thoughts appreciated!

Edited by CAH706 on Friday 6th March 16:51

[bqf]

It won't change at all. The CETV is guaranteed for a 3 month period.

Get it out now though....

[alscar]

OP , I'm currently looking at a CETV from my DB scheme - 90 days open until March 18.
The value is guaranteed but I must admit quite happy that I haven't as yet said yes.
I did check what the as if portfolio had done since say 1st Feb then 1st Jan and both around -5%.

To the reply poster , I'll ask why you are so definite in saying transfer now - even though given my transfer multiple still leads me to believe I should !

[CAH706]

Thanks both for replying

In not concerned with the current market performance. It will bounce back and I may be lucky to go in at a low bar. I'm transferring out regardless.

As additional detail, my actual transfer value went up c. 60k from 2018 to 2019 and I was hoping that I may see a decent increase again due to current guilt prices.

[bqf]

alscar said:

To the reply poster , I'll ask why you are so definite in saying transfer now - even though given my transfer multiple still leads me to believe I should !

Because we have an unprecedented market panic that will, within six months, be completely forgotten about and sensible stocks will be back to their pre-panic levels.

So, get the transfer out, and start cherry-picking the best stocks that have lost huge amounts of value for no reason other than herd mentality.

Depending on your appetite for risk, there are enormous bargains. Shell has lost 20% of it's value. Mad.

[bmwmike]

bqf said:

Depending on your appetite for risk, there are enormous bargains. Shell has lost 20% of it's value. Mad.

30%!

[Countdown]

I stand to be corrected but aren’t CETVs calculated on interest rates (specifically future interest rates which will determine future annuity prices) rather than the values of stocks and shares?

[CAPP0]

I've just had a valuation on a final salary scheme that I stopped paying into a long time ago. I wasn't expecting anything over-exciting - however, the transfer value they have offered suggests that I'd have to enjoy more several years after when Charlie or Will send me a telegram to take the same amount out, including RPI but excluding a widow's pension. It's about twice as much as my already-OK pension pot, ie the pot would end up being three times the size. I've got an appointment with my pensions people next week to see whether they agree.

Edited by CAPP0 on Friday 6th March 21:54

[Mazinbrum]

Countdown said:

I stand to be corrected but aren’t CETVs calculated on interest rates (specifically future interest rates which will determine future annuity prices) rather than the values of stocks and shares?

Gilt yields.

https://www.ft.com/content/6e3b4064-c9a7-11e9-af46...

[Countdown]

Mazinbrum said:

Countdown said:

I stand to be corrected but aren’t CETVs calculated on interest rates (specifically future interest rates which will determine future annuity prices) rather than the values of stocks and shares?

Gilt yields.

https://www.ft.com/content/6e3b4064-c9a7-11e9-af46...

Thanks (I couldn't for the life of me remember exactly what it was). AIUI these will change because the Fed has cut rates, however they're not linked to stockmarket fluctuations.