Soldato
LOL. To be fair, I'm actually really quite fond of herYou going to knock her off before she retires?
Plus on balance I think she'd do better knocking me off, but don't tell her.
LOL. To be fair, I'm actually really quite fond of herYou going to knock her off before she retires?
In what way?
* If she dies before retiring her estate receives only about 10% of the valuation
Check the terms before transferring anything, particularly how the payments will increase in relation to inflation.I think the confusion here is that there pension is made up of two elements. The first is DC, but the second larger is a final salary scheme that was converted into a lump sum about 15 years ago when that scheme was wound up, stopped and became a cash value.
What I do know is that an annuity purchased with the transfer value is very similar to the pension annuity forecast offered within the scheme.
I'll double check my facts, so thanks for the heads up.
I think the confusion here is that there pension is made up of two elements. The first is DC, but the second larger is a final salary scheme that was converted into a lump sum about 15 years ago when that scheme was wound up, stopped and became a cash value.
What I do know is that an annuity purchased with the transfer value is very similar to the pension annuity forecast offered within the scheme.
I'll double check my facts, so thanks for the heads up.
The DC is different as said thats her money, part of her estate.
Is that just because it isn’t part of the consideration for inheritance tax which the estate is considered for? You can pass on the DC pension to others.Just to be clear and I'm sure it's just your wording, but a DC scheme value is normally NOT part of someone's estate on death - Your pension isn't legally part of your estate, so is not covered by your Will.
Is that just because it isn’t part of the consideration for inheritance tax which the estate is considered for? You can pass on the DC pension to others.
The larger final salary (DB) bit may be sitting in the overall fund, but it's very likely that this has extra benefits attached to it, such as a minimum guaranteed value, enhanced conversion to an annuity etc. Make sure you have a full picture before transferring out elsewhere. If there is a large difference between value and transfer value, that may be a good indicatorI think the confusion here is that there pension is made up of two elements. The first is DC, but the second larger is a final salary scheme that was converted into a lump sum about 15 years ago when that scheme was wound up, stopped and became a cash value.
Just to be clear and I'm sure it's just your wording, but a DC scheme value is normally NOT part of someone's estate on death - Your pension isn't legally part of your estate, so is not covered by your Will.
When it's passed on to a spouse, what happens if that spouse is not yet 55? Do they get it as a cash payment or does it have to go in to another pension wrapper until they are?yes - you can pass it to whom you wish but it doesn't need to wait for "probate" (scotland) or winding up of an estate which can take months sometimes - It can be passed to the spouse for example in a very short space of time after the date of death of the individual.
When it's passed on to a spouse, what happens if that spouse is not yet 55? Do they get it as a cash payment or does it have to go in to another pension wrapper until they are?
Well this all makes a lot more sense. The information I was using was direct from my wife who doesn't really take much interest in these things. She has finally managed to get her login details reset so I've been able to see the real information.
What she thought was the final salary scheme conversion to a DC pension pot is not the case. The final salary scheme was converted into a CARE scheme so DB NOT DC.
This explains why the lump sum paid to her estate in the event of death is so small.
What I've done in any case is to take the transfer value and looked at annuities. Her DB annual pension goes up by RPI up to a max of 5% p.a.
Looking at comparison sites for lifetime annuity rates with a 3% uplift the going rate seems to be about £3,900 per £100,000 or purchase - this would give her an annuity about 25% below the DB scheme prediction. So quite a hit.
In the event of death before 75 a cash sum of 5 years of pension would be made. In the event of death before 75 I would receive half the pension that would be payable to her.
So in conclusion it looks like we would be far better off sticking, rather than taking a transfer value which is much smaller than would be required to match the benefits.
She may be able to take a lump sum from the DB scheme though if she wishes. Personal circumstances will determine if its viable or not.Well this all makes a lot more sense. The information I was using was direct from my wife who doesn't really take much interest in these things. She has finally managed to get her login details reset so I've been able to see the real information.
What she thought was the final salary scheme conversion to a DC pension pot is not the case. The final salary scheme was converted into a CARE scheme so DB NOT DC.
This explains why the lump sum paid to her estate in the event of death is so small.
What I've done in any case is to take the transfer value and looked at annuities. Her DB annual pension goes up by RPI up to a max of 5% p.a.
Looking at comparison sites for lifetime annuity rates with a 3% uplift the going rate seems to be about £3,900 per £100,000 or purchase - this would give her an annuity about 25% below the DB scheme prediction. So quite a hit.
In the event of death before 75 a cash sum of 5 years of pension would be made. In the event of death before 75 I would receive half the pension that would be payable to her.
So in conclusion it looks like we would be far better off sticking, rather than taking a transfer value which is much smaller than would be required to match the benefits.
Trustnet if you can find the funds on there.Are there any sites where you can compare funds side by side really easily. Like on a graph?
I thought I'd found the two I wanted to compare but the figures for 6m 1y and 5y don't match what are on the vanguard site.Trustnet if you can find the funds on there.
Make sure you are comparing the correct funds, e.g not mixing the accumulation and income versions.I thought I'd found the two I wanted to compare but the figures for 6m 1y and 5y don't match what are on the vanguard site.
Specifically Lifestrategy 100% and the FTSE Global All Cap Fund.