Results 1 to 5 of 5
  1. #1

    Should I transfer my Final Salary Pension ?

    I am 53 and have just had a valuation on my final salary pension that I left 10 years ago.
    The valuation is 40 times my the salary that I would get at 55 and 30 times what I would get at 60 and 29 times what I would get at 65.
    It is a life changing amount that will pay off my mortgage in 18 months time from the tax free element . I also have another 170k from various DC schemes since i left my final salaried job.

    The valuation is from Feb 2017 and is valid for 3 months.
    Is it worth me getting another valuation done ? This will cost me 300 and is there a chance the value has gone up since Feb 17 up to today ? I have been reviewing the web regularly to see if there are any reports showing if valuations are moving up or down.
    Any advice from any of you in a similar situation would be appreciated.

  2. #2
    if I had those figures I would take it

    But

    The question is can you live off the proceeds and the dc pot till you die ? And can you take the risk of stock market volatility that the dc pension gives you ?

    Why not take the tax free sum from your dc pot to pay �� ff your mortgage if the amount owing is bothering you ? But with interest rates so low do you really need to or is it the feeling of being mortgage free ?

    I have some debts but what makes me feel better is holding a balance sheet of my investments/pensions on one side and the debt on the other. I am happy with the nett value and with most of it very low interest I am not worried about it.

    If my missus knew she would have a fit though ��

  3. #3
    Thanks for the response chiefie. You are spot on about being mortgage free especially living in London with a large mortgage over the last 17 years.
    The thought of getting rid of that noose around my neck in 18 months time is the main reason.

  4. #4
    I used to take this view, and with a mortgage interest rate of less than 1% and all debt at low or no interest, I felt in control. I just don't like paying interest though - and I am relatively new to investing so most of mine was in savings, rather than investments. I realised that my accruing interest and growth was diminished by the mortgage interest which was still in the thousand plus and I just don't like giving that up.

    I guess the time of your life and career, family responsibilities and where and what happens around you all affect our attitudes. For me, the sudden and unexpected death of a friend and the mess they left, has spurred me to simplify things a bit.

  5. #5
    As mentioned in a similar thread today, it would only make sense to take the money if you could pay off the mortgage with your 25% tax free lump sum. The rest would be taxed, There is also a danger that future pension contributions could be subject to the 4000 per annum MPAA limit.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •