William Burrows

Members Login
Post Info TOPIC: Transfer value


Newbie

Status: Offline
Posts: 1
Date:
Transfer value
Permalink  
 


How do I know if the transfer value I have is good or bad 

Will it pay to wait a few years?

Thanks



__________________


Billy

Status: Offline
Posts: 34
Date:
Permalink  
 

This is a good question - your adviser will do a transfer value analysis TVA which will produce a report showing many different calculations

One of the calculations show you the cost of securing the pension by purchasing an annuity. For example if you at retirement and the transfer value is £100K but it will cost £ 125K to buy an annuity you will know it is 25% more expensive to replace the pension income in your own personal pension

Another calculation is how long your money will last if you take the pension as drawdown 

Apart from these hard facts there are soft facts e.g. importance of flexibility and ability to leave money to the family that need to be taken into account



__________________


Billy

Status: Offline
Posts: 34
Date:
Permalink  
 

Hello again, I didn't answer the question about transfer values now and in the future

The transfer value is calculated with reference to bond yields - if the yield goes down the transfer will be higher and vice versa

You can't second guess interest rates and there may be restrictions on how many transfer values you can have so be careful

A good adviser will explain in more detail



__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.