Crazyface
Tour Winner
So how does it then drop £50K? (the first value was £140K). What has changed in the "calculation"?
Retirement
- Thread starter Crazyface
- Start date
So how does it then drop £50K? (the first value was £140K). What has changed in the "calculation"?
SwingsitlikeHogan
Major Champion
Part of it may be that your DBP provider's need to have your DBP off their books may have lessened significantly for factors specifically business-related and nothing to do with the state of the markets - and so the factor they apply to incentive a pensioner to move will drop - they don't feel the need to offer you the same CETV (Cash Equivalent Transfer Value) as before. In my case my DBP provider was keen to reduce the amount they had to 'ring-fence' for pensioners and so were keen to incentivize me to leave - and so offered my a decent factor. Even then with a decent CETV it was touch and go whether my Drawdown pension provider would be able to accept the CETV.
The Fader
Newbie
As SILH says above - it's all about the individual pension scheme's position. As daft as it sounds when I moved my DBP's into Drawdown
I was "lucky" that 2 of my schemes were considered underfunded at the time of request. As such they were keen to shift me on and crystallize their liability and
offered very attractive CETV's. The 2 better funded schemes offered fair but less attractive CETV's.
And in the 4 months from getting the initial indicative quotes (which I and my FA were happy with) to the actual transfers, one underfunded scheme paid £46k higher
than the quote, 2 (the better funded schemes) paid the originally quoted amount to the penny and the other underfunded one paid £5k less. Same market conditions - clearly different circumstances for each scheme.
Perhaps in your wife's case the company has addressed a shortfall in funding or maybe moved other people out and therefore the scheme administrators or their
actuarial advisor have a lesser need to incentivise any further transfers out at this point?
Crazyface
Tour Winner
Very informative. Thank you. I'll let the wife know.
Back to me.....we inch forward again today!
Back to me.....we inch forward again today!
Crazyface
Tour Winner
And again today....
nickjdavis
Head Pro
20 working days left.
PNWokingham
Journeyman Pro
not understood many of your possts but from what i assume, you had a final salary transfer value of 140k a while ago and now 90k? If so, the calculation is arbitrary using discount values at the time of the request. When interest rates were at zero a few years ago the transfer values were huge because gilt yields were very low - i think the 20y is heavily used. But when interest rates are much higher at near 5% they will give a much lower transfer value as they discount future liabilities by a much higher figure, meaning their projected liabilities are much lower. Long and short - lower ineterst rates means higher the transfer values and vice versa
Crazyface
Tour Winner
That 140k down to 90K was one of the wifes pensions. Mine was 73k in Feb but due to all the messing about lapsed (the value only lasts 3 months). I re-applied and it went up to 78K, maybe they wanted me out! LOL. Mine is, hopefully, going though at the moment. Fingers crossed.
Pensions are THE most complicated things EVER. I not convinced that these so called advisors even know what the hell is going on with them. And don't start me on the companies that actually administer them. Even though, it appears, mine is going through, yesterday I got an email from an admin person employed by the clowns who admin where my money is to say it can't happen. Utterly useless!
SwingsitlikeHogan
Major Champion
The huge uncertainty that sticks in my mind when doing any pension fund drawdown 'rundown' considerations is what do I assume about care home costs that I and/or my Mrs might face. All I have is that they would be covered by our house. If my pension fund couldn't cover the cost as Ive run it down, the equity in my property most probably would and so the answer is either 'sell up and downsize' or 'equity release'. Don't see how I can factor it into my drawdown pension considerations because it is so uncertain - yet potentially so significant. A further alternative is to only drawdown at a level that would maintain a significant pot to the end. But consequently if we don't need the fund for care home costs then any residual pot once we've both flown this life will be included in IHT calculations. I might well be OK with that - but in truth I'd rather enjoy my retirement to the fullest I can - and so looking to 'run down' my fund - at least until I'm in my early 80s.
Crazyface
Tour Winner
It's all gone quiet. E mails not being responded to. What a poor lot these are!
The Fader
Newbie
20 days left to starting the best "job" you'll ever have!! At least that's how I feel about retirement.
Congratulations.
nickjdavis
Head Pro
Hilariously, my employment agency have just emailed me telling me that my client wants to extend my contract for a further 12 months.
This is totally at odds with what I've been told directly for the last 8 months during which time I've been spending most of my time training the Romanian team who are replacing me and my other colleagues who are going at the end of the year (one of whom also has been told by his agency, in the last couple of days, that his contract is being extended as well!!).
Left hand/right hand. Arses/Elbows me thinks.
The Fader
Newbie
Politely decline. You won't regret it - promise.
And if they make the request less than a month before your scheduled finish, which directly contradicts previous into - you should want nothing to do with their unorganized body parts!
You'll never get the time back - and time is a far more valuable commodity than £££'s
rulie
Head Pro
Or make them pay for your extended time - make it worth your while.
Yorkhacker
Well-known member
They've obviously realised the Romanians aren't going to be ready!
Depending on how you feel, you could extend on a month by month basis - it is winter after all!
Otherwise, just leave. There's no better feeling than sticking 2 fingers up at people that thought they could get the same job done cheaper, and now realise it's going to cost them a lot more.
nickjdavis
Head Pro
I'm guessing it is a "computer error"...in the past our management actively said "yes we want to keep this person"...now the various HR computer systems are set to "auto-renew contract unless we get notification otherwise by X-date"
But in the unlikely event that they do turn round and ask if I can stay on a bit then definitely it would be on my terms...limited hours, extortionate hourly rate, hard cut off in 3 or 4 months time just ready for summer....and if you then want more after that then the "extortionate rate" will become even more extortionate!!
rulefan
Tour Winner
In the 60s when I worked for the then General Register Office I wrote the computer program that analysed mortality and morbidity statistics.
The average life expectancy for men was around 70. It is now around 80. Why? Better medicines/treatments etc? No.
There had been two world wars over the preceding half century. The last was nearly 80 years ago.
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PNWokingham
Journeyman Pro
Worth a watch to hear about tax rates for accessing your pension and other issues around this
pendodave
Tour Rookie
Also, it depends on how old you are. The value at birth in Scotland is 76, but that takes account of all sorts of early years mortality risks, and for young men a period of dangerous driving and dubious lifestyles.
By the time you're the age of the average forum member and have put all that behind you, even the average Scottish male makes it to around 83.
I suspect its higher elsewhere, but I can't be bothered to check the stats!
And then of course there is the "healthy years" left stats, but they're a whole other can of worms.
Crazyface
Tour Winner
It's gone VERY quiet. No one is answering e mails which are requesting updates. Although my account does say "contribution in progress" so..........
