Transferring Out of a Final Salary Pension Scheme?
Discussion
I'm 20 years in a non contributary employer scheme. It was a Final Salary scheme but they put a limit on it based on pay some years ago. Making it worth considerably less as my salary has grown as my career progressed.
I pay a small amount into an AVC pot (about £700pa)
I've heard from some colleagues that transfer out values are very good to the point they have done so.
Anyone have any recent experience of doing or looking at this?
Keen to hear experiences.
I pay a small amount into an AVC pot (about £700pa)
I've heard from some colleagues that transfer out values are very good to the point they have done so.
Anyone have any recent experience of doing or looking at this?
Keen to hear experiences.
Sorry to bump - but anyone have any experiences of this to share?
For some perspective, despite being a final salary scheme the end maximum pension is limited and will not increase even with inflation or rpi. The final pension available at retirement in 25 years is now around 33% of my current salary.
Wondering if its better to get a payout into a pension pot now and I can pay in a smaller percetage which my employer will match 3-fold e.g. I pay 3% employer adds in 9% etc.
For some perspective, despite being a final salary scheme the end maximum pension is limited and will not increase even with inflation or rpi. The final pension available at retirement in 25 years is now around 33% of my current salary.
Wondering if its better to get a payout into a pension pot now and I can pay in a smaller percetage which my employer will match 3-fold e.g. I pay 3% employer adds in 9% etc.
red_duke said:
Ask for a Cash Equivalent Transfer Value (CETV). If that is over £30,000 you will need to get an independent financial adviser involved if you wish to transfer.
And there can be a reluctance for IFAs to undertake a transfer out given the security that a FS scheme gives.If you find one that will do it, then the fees can be quite high as there is, apparently, a lot of paperwork required with several checks and balances.
When I looked at doing similar, my CETV was about £400k and the advice was leave it a d plough more into another pension. That way you have some guaranteed income.
I am glad I left mine as it was given that my SIPP has only seen a growth of 4% in 4 years right now.
Boringvolvodriver said:
red_duke said:
Ask for a Cash Equivalent Transfer Value (CETV). If that is over £30,000 you will need to get an independent financial adviser involved if you wish to transfer.
And there can be a reluctance for IFAs to undertake a transfer out given the security that a FS scheme gives.If you find one that will do it, then the fees can be quite high as there is, apparently, a lot of paperwork required with several checks and balances.
When I looked at doing similar, my CETV was about £400k and the advice was leave it a d plough more into another pension. That way you have some guaranteed income.
I am glad I left mine as it was given that my SIPP has only seen a growth of 4% in 4 years right now.
Think I'll put a request in and ask colleagues who they have seen about it IFA wise.
Last week I was talking with an IFA, he reckons that transferring out of final salary pension schemes is going to be the next big compensation payout scheme.
Small firms like his will be paying out for a long time for the miss-selling of inappropriate financial products by irresponsible advisers.
Small firms like his will be paying out for a long time for the miss-selling of inappropriate financial products by irresponsible advisers.
Boringvolvodriver said:
And there can be a reluctance for IFAs to undertake a transfer out given the security that a FS scheme gives.
If you find one that will do it, then the fees can be quite high as there is, apparently, a lot of paperwork required with several checks and balances.
When I looked at doing similar, my CETV was about £400k and the advice was leave it a d plough more into another pension. That way you have some guaranteed income.
I am glad I left mine as it was given that my SIPP has only seen a growth of 4% in 4 years right now.
Not entirely constructive (sorry) but makes me feel a bit better as I'm up 14% over the same 4 years (I decided to transfer around the same time). Was aiming higher so not over the moon regardless. If you find one that will do it, then the fees can be quite high as there is, apparently, a lot of paperwork required with several checks and balances.
When I looked at doing similar, my CETV was about £400k and the advice was leave it a d plough more into another pension. That way you have some guaranteed income.
I am glad I left mine as it was given that my SIPP has only seen a growth of 4% in 4 years right now.
Personal circumstances have to come into it too. In different circs I'd have likely left it in the FS scheme.
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