transfer define benefit pension to personal pension?

**northernladuk** · 19 November 2015, 09:28

Have you thought about speaking to an IFA that actually knows about pensions?

Your contracting life could come to a fairly abrupt end soon as well so I wouldn't be moving anything for a little bit.

**DaveB** · 19 November 2015, 09:34

Originally posted by ehhwhat View Post

I've recently set up a personal pension as part of my new contracting life and pay in a certain amount per month. Before contracting i was permie for 7ish years and made contributions towards the defined benefit pensions scheme in the company, i would prefer to have everything in one place which means i am considering moving my DB pension to my personal one.

Is this a stupid idea?

From what I've read i would be worse off by transferring this out but having looked at my DB pension statement i am only going to receive £2,274.96 per year on retirement anyway so is it that much of a loss?

The transfer out valuation i have got online is "Guaranteed transfer value: £26,677.39" would this amount simply be added on top of the contributions i have made to my personal pension?

I went thought this process myself and went to an IFA for some proper advice.

The upshot was that the assorted contributory pensions I'd accumulated in various permie roles over the years we transferred into a single SIPP. However, the 2 defined benefits pensions I'd acquired through a couple of Public Sector permie jobs were left as they were as the benefit from them on maturity was almost certainly going to be better than the benefit from cashing them in and reinvesting.

YMMV, get some proper advice.

**JRCT** · 19 November 2015, 10:09

Originally posted by DaveB View Post

I went thought this process myself and went to an IFA for some proper advice.

The upshot was that the assorted contributory pensions I'd accumulated in various permie roles over the years we transferred into a single SIPP. However, the 2 defined benefits pensions I'd acquired through a couple of Public Sector permie jobs were left as they were as the benefit from them on maturity was almost certainly going to be better than the benefit from cashing them in and reinvesting.

YMMV, get some proper advice.

My first ever company pension from back in the early 90s is paltry. I only contributed for about a year and I think my income back then was about 2 and 6 a month.

Every 6 months or so I get a letter from them with a picture of a happy couple smiling and walking through a leafy park, all content with no worries at all telling me how well they've invested MY money and that it's now worth..... £11.24 per month on retirement.

I'll never move it. It'll buy me a pint each month if I make it to retirement.

**malvolio** · 19 November 2015, 11:16

Just had exactly this and ran it past my IFA. It pays me a guaranteed £300-ish a month net until death from a fund of just under £24k. If I took the capital and drew £300 a month plus taxes it would be gone in less than six years. I'm planning on lasting a little longer than that.

HTH

**Maslins** · 19 November 2015, 12:15

(

I am an accountant who is not FCA regulated so cannot give investment advice. The below is just my non-professional opinion

).

My understanding is as others have said, defined benefit schemes are generally no longer being given as an option, as with people living longer they're far too generous. If you've got one, typically you want to hold onto it.

**BigRed** · 19 November 2015, 13:34

+1
depends on your age and how much money is in it, but you are highly unlikely to match a defined benefit pension, don't even take the lump sum out of it when it matures.

**ehhwhat** · 19 November 2015, 16:14

it works out to be about £180 a month, only reason i asked was that it seemed a low amount to me in general so wasn't really much to worry about. I just didn't want to have to manage more than one scheme.

If it had been a few hundred more £ a month then i wouldn't consider it.

**mackenzie99d** · 19 November 2015, 19:37

It depends on what you are being offered and what other benefits are included as part of the pension.
I'm going through the same thing at the moment and have decided to go ahead and transfer. You have to
talk it over with a qualified advisor not just a normal IFA before going ahead. I was offered a transfer value
of £74k against a pension valued at £1750 PA which seems very good compared to what others are being offered,
although it varies a lot depending on age etc.
OP - I don't know your age but that transfer value seems on the low side although I'm no expert

**Fred Bloggs** · 19 November 2015, 20:53

That sounds an extraordinarily generous transfer value.

transfer define benefit pension to personal pension?