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Retirement

Matt Hopkins said:
That's the crux of the matter. You've realised you were probably in the wrong fund and are now doing something about it. Good luck whichever way you decide to go đź‘Ť

Yeah I tracked what my pot would have been in the default one compared to what I picked there was quite a bit of difference. Unfortunately you can't really tell people you work with what you think they, possibly, should be in so it's down to the individual and quite a few people have no idea about pensions. As I've said before some people think just because they have a company pension they are sorted, sadly from what I've seen nothing could be further from the truth.
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Benefit of hindsight, but if Truss hadn't of fucked up the gilts market, then the risk adverse funds would've looked a lot healthier
 

42 said:
Benefit of hindsight, but if Truss hadn't of fucked up the gilts market, then the risk adverse funds would've looked a lot healthier
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Dunno mate but going off my tracker if Truss fkd up the gilt markets in 2021 then yes it's her fault, that's when I can see the big change starting.
 
Temple of Doom said:
Many people don’t realise that these type of schemes use a process called lifestyling which means the fund begins to de-risk as you get older. How old are you @Slim999?
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This - Combining 3 pensions into one currently.
Meeting Tuesday to run through the numbers with a Pension Advisor.
Have 2 Final Salary Pensions that have done well. More than likely will take a tax free lump sum from both and kick start the income from them.
Mindful of tax year etc.
Want out of this depressing job and stress I am in. The time has come.
 
Swindon On Tour said:
This - Combining 3 pensions into one currently.
Meeting Tuesday to run through the numbers with a Pension Advisor.
Have 2 Final Salary Pensions that have done well. More than likely will take a tax free lump sum from both and kick start the income from them.
Mindful of tax year etc.
Want out of this depressing job and stress I am in. The time has come.
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DB pensions don't 'do well' they just 'do'.
The IFA might advise against taking a tax free lump from them it all depends on the commutation rate. đź‘Ť
 
Swindon On Tour said:
This - Combining 3 pensions into one currently.
Meeting Tuesday to run through the numbers with a Pension Advisor.
Have 2 Final Salary Pensions that have done well. More than likely will take a tax free lump sum from both and kick start the income from them.
Mindful of tax year etc.
Want out of this depressing job and stress I am in. The time has come.
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Be wary of cashing in FS pensions. Run the numbers on a spreadsheet from now ( your current age) up to when you're mid 80s - and add 2% each year for inflation.

It may come up with a big number that you'll never replicate by cash in...

But I'm sure your FA will advise on the best course of action
 
Matt Hopkins said:
That's the crux of the matter. You've realised you were probably in the wrong fund and are now doing something about it. Good luck whichever way you decide to go đź‘Ť

Yeah I tracked what my pot would have been in the default one compared to what I picked there was quite a bit of difference. Unfortunately you can't really tell people you work with what you think they, possibly, should be in so it's down to the individual and quite a few people have no idea about pensions. As I've said before some people think just because they have a company pension they are sorted, sadly from what I've seen nothing could be further from the truth.
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I think a lot of firms choose an overly cautious fund as their default one. Perhaps they are worried about being accused of being too risky. If you are in your 20s or 30s (and maybe older) you shouldn't be having a cautious risk profile.
 
Slim999 said:
Be wary of cashing in FS pensions. Run the numbers on a spreadsheet from now ( your current age) up to when you're mid 80s - and add 2% each year for inflation.

It may come up with a big number that you'll never replicate by cash in...

But I'm sure your FA will advise on the best course of action
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Don't think he's on about cashing them in. Be amazed, unless you work for a certain company, that anyone will recommend turning a DB to a DC scheme
 
Matt Hopkins said:
Don't think he's on about cashing them in. Be amazed, unless you work for a certain company, that anyone will recommend turning a DB to a DC scheme
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It’s quite difficult to justify now but that certainly wasn’t the case from about 2016 to 2022 mind.
 
Temple of Doom said:
It’s quite difficult to justify now but that certainly wasn’t the case from about 2016 to 2022 mind.
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It's hard to make stand up why give a gaurteed income to take on the risk and cost yourself ( btw I am a qualified pension transfer specialist)
 
Nobby said:
It's hard to make stand up why give a gaurteed income to take on the risk and cost yourself ( btw I am a qualified pension transfer specialist)
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Then you’ll know each case should be looked at on its individual merits and that transfer values were better in the years I’ve stated than they are now and hence more transfers were recommended during that period.
 
Temple of Doom said:
Then you’ll know each case should be looked at on its individual merits and that transfer values were better in the years I’ve stated than they are now and hence more transfers were recommended during that period.
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Absolutely but a high cetv is not a reason to transfer. If you don't have a source of income that means you have no reliance on the scheme pension then it is probably not in your best interest to transfer (ignoring health or financial hardship issues) I would recommend anyone thinking of doing this read the FCA FG 21/3 to see the regulators thoughts
 
Nobby said:
Absolutely but a high cetv is not a reason to transfer. If you don't have a source of income that means you have no reliance on the scheme pension then it is probably not in your best interest to transfer (ignoring health or financial hardship issues) I would recommend anyone thinking of doing this read the FCA FG 21/3 to see the regulators thoughts
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Not in isolation no, but the higher the multiple the higher the chance that it can be transferred. Values are shite now. They weren’t for the last 6 years. Some schemes were offering more than 40 times the income the scheme pension was offering. It’s not a one size fits all solution or a hard no either. People should seek advice not just dismiss it out of hand. They also shouldn’t get married to the number once they receive the CETV either. That’s dangerous.

(By the way I’m rejecting about 90% of them these days).
 
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Temple of Doom said:
Not in isolation no, but the higher the multiple the higher the chance that it can be transferred. Values are shite now. They weren’t for the last 6 years. Some schemes were offering more than 40 times the income the scheme pension was offering. It’s not a one size fits all solution or a hard no either. People should seek advice not just dismiss it out of hand. They also shouldn’t get married to the number once they receive the CETV either. That’s dangerous.

(By the way I’m rejecting about 90% of them these days).
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but the higher the multiple the higher the chance that it can be transferred

I can say with absolute certainty (having spent the last four years of my professional life on this) that FOS don't share that view. They look at can the needs (not wants) be met by the scheme pension or if they can be underpinned by the scheme pension. If they can FOS will find it unsuitable
 
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Nobby said:
but the higher the multiple the higher the chance that it can be transferred

I can say with absolute certainty that FOS don't share that view
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You know what I mean. Every case is different as I said before and I take it you know what a TVAS is? You need to know the income multiple. A multiple of 40 is more favourable than a multiple of 15 - but you knew that already. There’s loads of different factors to consider. You’re just generalising or being argumentative now.
 
Temple of Doom said:
You know what I mean. Every case is different as I said before and I take it you know what a TVAS is? You need to know the income multiple. A multiple of 40 is more favourable than a multiple of 15 - but you knew that already. There’s loads of different factors to consider. You’re just generalising or being argumentative now.
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Every case is different but I struggle to see the relevance of a TVAS post 2018. A TVC and APTA are required now

The FCA assume the transfer is not suitable from the outset. A recommendation
to transfer should only be made if this can be clearly shown to be demonstrably suitable and, in the client’s best interests

That goes well beyond CETV and multiples.

As I say having spent that last four years dealing with FOS if you can't demonstrate no reliance on the scheme pension I will bet you will lose.

We have several times
 
Nobby said:
but the higher the multiple the higher the chance that it can be transferred

I can say with absolute certainty (having spent the last four years of my professional life on this) that FOS don't share that view. They look at can the needs (not wants) be met by the scheme pension or if they can be underpinned by the scheme pension. If they can FOS will find it unsuitable
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I’ll humour your edits.

Firstly the FOS don’t decide what’s suitable or what isn’t. It’s the FCA that produce the guidance not the FOS. The FOS would only step in as an arbitrator if a complaint was made to a firm and the firm and client could not resolve the matter between them. That’s their role.

It’s the FCA that request files. It’s the FCA that continue to let you have a license.
Nobby said:
Every case is different but I struggle to see the relevance of a TVAS post 2018. A TVC and APTA are required now

The FCA assume the transfer is not suitable from the outset. A recommendation
to transfer should only be made if this can be clearly shown to be demonstrably suitable and, in the client’s best interests

That goes well beyond CETV and multiples.

As I say having spent that last four years dealing with FOS if you can't demonstrate no reliance on the scheme pension I will bet you will lose.

We have several times
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Aye ok. I’m old school on my acronyms but again you know what I mean. I’ll leave it rather than edit it and it’s not a cock measuring contest mate.

Thankfully I’ve not dealt with the FOS as when the FCA have checked our records on DB transfers they’ve been 100% suitable and nor have there been any complaints requiring the FOS to step in. I’ll take that all day long.

Goodnight mate and thanks for the lessons.
 
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