Enhanced transfer value offer

P

Pieface

Registered User
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Hi,
I am in a defined benefit scheme with a previous employer and they have recently made an Enhanced Transfer Value Offer which means that if accepted, I would no longer be in their defined benefit pension scheme. How do I determine if I should accept the offer?
Thank you.
 
Have you already googled and read the many sites offering useful summary info about this issue and question?
 
You absolutely shouldn’t be considering this without competent professional advice.

Ive written a guide which sets out the issues one needs to consider but the first rule here is that it is rarely a good idea to leave a defined benefit pension.

the reason you are being offered an enhancement is to encourage you to leave an expensive and valuable scheme.

Defined Benefit Pensions what you need to know

In the UK, Pension freedoms have given a significant boost to the interest in defined benefit (DB) transfers and despite a requirement to obtain professional advice there have still been widespread examples of mis-selling Financial Advice should be very personal in nature, and the following...
viewer.joomag.com
 
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I attach extracts from the following post from another thread.
It is a complex subject. Would you care to share more details? You should have been provided with free professional financial advice when you were made that offer, is that the case? I attach the spreadsheet referred to above in this post.
@Marc is of course right that the company making the offer obviously sees it as good value for them. Obviously, if you were to accept the offer and then try to buy the pension you have given up you will lose money. But that does not mean that it cannot be a win/win situation as I believe the Zurich Life example was.
 

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Thank you all for your replies. I will read up more on it. And avail of the free professional financial advice on it.
 
Pieface said:
Thank you all for your replies. I will read up more on it. And avail of the free professional financial advice on it.
Click to expand...
What "free professional advice"?
Be careful here - make sure that any professional advisor is working in your best interests and does not have some vested interest in a particular course of action.
In particular be skeptical of any free professional advice that the employer may make available to you as the employer almost certainly has a vested interest in getting you out of the DB scheme.
Pay for your own independent professional advice if necessary.
 
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