Very welcome. Always try to keep things to the point as so much jargon surrounding this area. Are there any specific videos that you would like to request? Or ones that you think other people in your situation benefit from?
We got lucky and managed to accept our CETV at near all time peak. My friend had a cetv of about 450k. I suggested he seriously consider transferring out ...he decided against. His cetv is now circa 160k. Tragic missed opportunity. I'm gutted for my friend. The system though is weighted towards not transferring and is not for everyone tbh. Every individual situation is different. We won't see those historic high cetv values again until yields are at historic lows for a number of years. transferring out in our personal situation meant we could retire at 54. Took us about 2 to 3 months to complete our transfer. We missed the peak by about a month. They won't usually let you do a transfer unless you have other income. Not for everyone.
Yup very much agree! Although your friend might be exaggerating with the 450K to 160K. As I’ve not heard of a CETV being cut by two thirds, even from the extreme high to the extreme low. A drop of 55% is the largest we’ve ever seen. How are you currently invested now? What has is your portfolio 5-year cumulative return, TER, FE risk score and level of exposure to the US? Feel free to email if prefer not to share here: dominic.murray@cjfinance.co.uk
Phew. I don't plan on transferring my DB pension but did get a transfer value 7 years ago and just 'now' - both due change of financial advisor - and wondered why it is lower now than then.
Hi Gary, Indeed, the value has been going down. This change is highly caused by the combination of high gilt rates and lower long-term inflation expectations. What is your current state with your DB Pension and what is your next plan?
Hi Thanks for the info and very timely as I am planning to retire in two months time. I had noticed on my annual pension statement that the transfer value had declined over the last couple of years, and now I understand why. Will this reduction in value have implications for the amount I will receive at retirement?The pension site has an on line quotation tool and I noticed that the most recent quote was lower than one I had received from the company back in August 23.
You almost very welcome. No that is the beauty of defined benefit pensions. The annual pension that you will receive, is unconnected to the CETV fluctuations or market performance. What was your previous transfer value? And your more recent transfer value? Have you consolidated any of your old DC schemes or you only have the DB? And if this is your last year in employment, have you maximised your employee and employer contributions? Including pension carry forward if applicable? Feel free to respond here or drop me an email on dominic.murray@cjfinance.co.uk and can chat there 👍
I went from an enhanced offer in 2020 of £440000 now it’s £260000 was advised not to transfer at the time wrong advice in my calculations is there any come back via the paid advisor
Unless the advice to keep the pension was unsuitable, then no. Transfer values and how they change have no bearing on the suitability of advice at that point in time. You can't provide advice that is contingent on future events that you can not predict. Most people should keep their DB, the fact that they were and now values are much smaller has no bearing on the suitability of the original advice.
@@markmac9053 Why was it wrong? Hindsight is 20/20. Completely understand your frustrations, but if the advice was suitable back then, just because valuations have plummeted doesn't mean it was wrong. Transfer values and multiples have very little bearing on the advice, as the comparison is made against guaranteed benefits.
yeah same, I didn't realise they work on interest rates. Gutted I didnt cash out in 2020. And I doubt interest rates will ever go that low again for a long time. Wish I had transferred out then put it into World Equity ETF.
Clear, concise, direct, informative and to the point, THANK YOU (new subscriber)
Very welcome. Always try to keep things to the point as so much jargon surrounding this area.
Are there any specific videos that you would like to request? Or ones that you think other people in your situation benefit from?
We got lucky and managed to accept our CETV at near all time peak. My friend had a cetv of about 450k. I suggested he seriously consider transferring out ...he decided against. His cetv is now circa 160k. Tragic missed opportunity. I'm gutted for my friend. The system though is weighted towards not transferring and is not for everyone tbh. Every individual situation is different. We won't see those historic high cetv values again until yields are at historic lows for a number of years. transferring out in our personal situation meant we could retire at 54. Took us about 2 to 3 months to complete our transfer. We missed the peak by about a month. They won't usually let you do a transfer unless you have other income. Not for everyone.
Yup very much agree!
Although your friend might be exaggerating with the 450K to 160K. As I’ve not heard of a CETV being cut by two thirds, even from the extreme high to the extreme low. A drop of 55% is the largest we’ve ever seen.
How are you currently invested now? What has is your portfolio 5-year cumulative return, TER, FE risk score and level of exposure to the US?
Feel free to email if prefer not to share here: dominic.murray@cjfinance.co.uk
Phew. I don't plan on transferring my DB pension but did get a transfer value 7 years ago and just 'now' - both due change of financial advisor - and wondered why it is lower now than then.
Hi Gary,
Indeed, the value has been going down. This change is highly caused by the combination of high gilt rates and lower long-term inflation expectations.
What is your current state with your DB Pension and what is your next plan?
Hi
Thanks for the info and very timely as I am planning to retire in two months time. I had noticed on my annual pension statement that the transfer value had declined over the last couple of years, and now I understand why.
Will this reduction in value have implications for the amount I will receive at retirement?The pension site has an on line quotation tool and I noticed that the most recent quote was lower than one I had received from the company back in August 23.
You almost very welcome. No that is the beauty of defined benefit pensions. The annual pension that you will receive, is unconnected to the CETV fluctuations or market performance.
What was your previous transfer value? And your more recent transfer value?
Have you consolidated any of your old DC schemes or you only have the DB?
And if this is your last year in employment, have you maximised your employee and employer contributions? Including pension carry forward if applicable?
Feel free to respond here or drop me an email on dominic.murray@cjfinance.co.uk and can chat there 👍
It took a year for my DB Pension Fund to agree to a transfer out. They had to change their rules.
Hello
Yes, it really is amazing how long it takes, and how much time and effort an adviser has to put it to get a transfer completed.
I went from an enhanced offer in 2020 of £440000 now it’s £260000 was advised not to transfer at the time wrong advice in my calculations is there any come back via the paid advisor
Unless the advice to keep the pension was unsuitable, then no. Transfer values and how they change have no bearing on the suitability of advice at that point in time. You can't provide advice that is contingent on future events that you can not predict. Most people should keep their DB, the fact that they were and now values are much smaller has no bearing on the suitability of the original advice.
Yes I agree most but not all but this was compulsory paid for advice that turned out to be wrong
@@markmac9053 Why was it wrong? Hindsight is 20/20. Completely understand your frustrations, but if the advice was suitable back then, just because valuations have plummeted doesn't mean it was wrong. Transfer values and multiples have very little bearing on the advice, as the comparison is made against guaranteed benefits.
yeah same, I didn't realise they work on interest rates. Gutted I didnt cash out in 2020. And I doubt interest rates will ever go that low again for a long time. Wish I had transferred out then put it into World Equity ETF.
[you can’t provide advice on future events] isn’t that what the paid advisor is for or are you paying for someone to guess .