Rbs/nat west db pension transfer
Discussion
Hoping for a bit of guidance please.
I have a db pension from years ago from rbs ,now natwest.
The last ctev transfer valuation i obtained 3 years ago was 120k . Probably worth less now
When I'm 60 it will pay a 50k lump sum and 2or3 grand a year thereafter.
I want to transfer it to my present work dc scheme ideally. I can then invest it myself.
I know such a transfer is getting really tough and many ifa will not touch this transaction. starting from a position that its not a good thing to do etc.
I have other property / cash/ mortgage free, so in a good position i would say.
I have made contact with a firm that specialise in these transfers to put out the feelers.The fee is 3pc . However this fee is payable even if the transfer request is not successful...
Is it worth approaching nat west to ask them if they are processing any db transfers at present as a 1st move?
Any help greatly appreciated
David.
I have a db pension from years ago from rbs ,now natwest.
The last ctev transfer valuation i obtained 3 years ago was 120k . Probably worth less now
When I'm 60 it will pay a 50k lump sum and 2or3 grand a year thereafter.
I want to transfer it to my present work dc scheme ideally. I can then invest it myself.
I know such a transfer is getting really tough and many ifa will not touch this transaction. starting from a position that its not a good thing to do etc.
I have other property / cash/ mortgage free, so in a good position i would say.
I have made contact with a firm that specialise in these transfers to put out the feelers.The fee is 3pc . However this fee is payable even if the transfer request is not successful...
Is it worth approaching nat west to ask them if they are processing any db transfers at present as a 1st move?
Any help greatly appreciated
David.
Leave it alone.
I wouldn't be surprised if your CETV now is £80k or less. You can ask for one transfer value per year free of charge if you're curious. The cost of secure income is currently less than it has been for a long time. Your annual pension entitlement has only gone up with the revaluation in deferment, yet working it back the other way actuarially it's worth less.
Whilst you might have other assets if you don't have other secure income that at least covers your essentials then it'll be hard to demonstrate capacity.
You see it as a transfer request but what you're paying for is transfer advice. That piece of work costs the same, whether it's a recommendation to transfer or retain the scheme. The FCA have specifically stated that a no recommendation should not be cheaper as otherwise it can bias the adviser to say yes.
Just enjoy the fact that some of your retirement income is guaranteed and focus on making the most of your other savings. More commonly than not, the spouse's pension if they outlive you is based on half the full pension before tax free cash commutation, so you can get a tax free lump sum with reduced annual pension without your spouse getting any less.
I wouldn't be surprised if your CETV now is £80k or less. You can ask for one transfer value per year free of charge if you're curious. The cost of secure income is currently less than it has been for a long time. Your annual pension entitlement has only gone up with the revaluation in deferment, yet working it back the other way actuarially it's worth less.
Whilst you might have other assets if you don't have other secure income that at least covers your essentials then it'll be hard to demonstrate capacity.
You see it as a transfer request but what you're paying for is transfer advice. That piece of work costs the same, whether it's a recommendation to transfer or retain the scheme. The FCA have specifically stated that a no recommendation should not be cheaper as otherwise it can bias the adviser to say yes.
Just enjoy the fact that some of your retirement income is guaranteed and focus on making the most of your other savings. More commonly than not, the spouse's pension if they outlive you is based on half the full pension before tax free cash commutation, so you can get a tax free lump sum with reduced annual pension without your spouse getting any less.
007 thanks for the reply. I take on board your points.
I am trying to organise my finances and this is the part which is not 100pc in a nice organised parcel so it nags me!
This db pension is only 1 part of my future planning and finances so I am pretty relaxed if I do nothing much with it . The 50k will be nice in 7 years and I will leave the balance.
Thanks
David.
I am trying to organise my finances and this is the part which is not 100pc in a nice organised parcel so it nags me!
This db pension is only 1 part of my future planning and finances so I am pretty relaxed if I do nothing much with it . The 50k will be nice in 7 years and I will leave the balance.
Thanks
David.
davidc1 said:
I am trying to organise my finances and this is the part which is not 100pc in a nice organised parcel so it nags me!
It's in its own little box that requires zero management from you. Lots of people cite this consolidation reason but it's nonsensical for the aforementioned reason and carries no weight as a reason to recommend a transfer. At a point similar to you - 7 or 8 years to go with the RBS/NatWest pension, my transfer value was £350k and I also had a SIPP as well where I had consolidated smaller pensions into and was still contributing.
My IFA had a quick look and whilst an attractive option, he felt that he would not get it past compliance and his advise was to leave it as a guaranteed amount that requires no management with no fees at all. If you transfer you will incur the fees along with ongoing fees for as long as you keep the funds.
Effectively an annuity which is guaranteed allowing me to be a tad more adventurous with my SIPP!
Depending on how much you have in other pensions, then I would be inclined to leave it as is.
My IFA had a quick look and whilst an attractive option, he felt that he would not get it past compliance and his advise was to leave it as a guaranteed amount that requires no management with no fees at all. If you transfer you will incur the fees along with ongoing fees for as long as you keep the funds.
Effectively an annuity which is guaranteed allowing me to be a tad more adventurous with my SIPP!
Depending on how much you have in other pensions, then I would be inclined to leave it as is.
To add to what others have said with a real world example from someone who is a similar age and also in a scheme with a normal pension age of 60, the CETV of my accrued benefit in July 2023 was about 30% lower than the previous one I'd been given in November 2019 - on that basis yours would be somewhere around £84k.
Given that this isn't your only pension, I'd carry on letting the risk lay with the NatWest/RBS pension fund rather than taking it on yourself for the sake of tidyness.
Given that this isn't your only pension, I'd carry on letting the risk lay with the NatWest/RBS pension fund rather than taking it on yourself for the sake of tidyness.
Gassing Station | Finance | Top of Page | What's New | My Stuff