Transfer value of small deferred DB pension

[midas]

Hi, I have a very small deferred defined benefit pension from when I was working in a part-time job in college a couple of years ago – a pension of €1,233 pa (value today) indexed each year by CPI.

I’m now working fulltime and contribute to a Hybrid Scheme. I was considering transferring my small deferred benefit to my new scheme for handiness sake (I know it would probably make more financial sense to just keep the deferred benefit but I’m not due to retire for another 40 years!)

I requested a transfer value and was told that the cash equivalent transfer value was €3,157. Would anyone know if this is a reasonable transfer value? I thought it was a bit low…I would appreciate any thoughts or views.

Thanks

 

[StevieC]

My advice is forget handiness sake, is it such a hardship to contact 2 insurance companies at retirement rather than one?

Leave the deferred defined benefit pension where it is unless you feel there is a danger that the company will not be around in 40 years time to pay for your annuity under the plan. The transfer value now is paltry compared to what the deferred pension will be worth.