Thanks for the info. I have three UK defined benefit pensions to come at age 60. I am now resident in Australia, and my problem is that although lump sums are tax free in the UK I will have to declare lump sums and pension as taxable income in Australia. As you rightly point out I could take a transfer value to an appropriate pension (super) fund in Australia.. But I am definitely not going to do that as you again correctly said.. Defined benefit schemes are like gold dust! So its a dilemma ... Liklihood I will have to take everything as pension.. To avoid losing half my tax free cash in Australian tax system. Have you or others come across this issue before? Many thanks Phil Johnson Melbourne
The Dark Arts sums it up pretty well. My DB scheme normal retirement age was 55..lucky me, but capped at 5% inflation. And a reduction on the basic salary was used at outset of payment to factor in the state pension. All of which I was well aware, and yet the scheme still has the biggest deficit in any company in the UK. However, still delighted to have..I hope for my duration...a guaranteed amount coming in. My Sipp however will give me the bigger income.
@@carlrobertsonmoney I hope the estimates we get take this into account. Otherwise might explain why some people complain they did receive the pension they expected.
I was planning to move my DB pension into a SIPP. I received two transfer valuations this year (2022) one in February which expired and another in October. The October valuation was over 30% lower than the earlier one, which was discouraging. I am 55 and looking to take a 25% tax free lump sum (approved by an IFA). I know you do not have a crystal ball but do you feel it might make sense to hold off until 2023. I see bond yields are forecasted to drop slightly and interest rate hikes could slow down? Just interested to hear another point of view on this please. Many thanks
Hi Sarah. Yes impossible to say what will be right. At the moment it looks like interest rates are forecast to continue rising but things are still uncertain so anything could change. There is just no way to time the market. Having said that. Some investment valuations are still lower than they were 12 months so at least once transferred you new fund has more chance to grow. Again no guarantee though.
Thanks for the info.
I have three UK defined benefit pensions to come at age 60.
I am now resident in Australia, and my problem is that although lump sums are tax free in the UK I will have to declare lump sums and pension as taxable income in Australia.
As you rightly point out I could take a transfer value to an appropriate pension (super) fund in Australia.. But I am definitely not going to do that as you again correctly said.. Defined benefit schemes are like gold dust!
So its a dilemma ...
Liklihood I will have to take everything as pension.. To avoid losing half my tax free cash in Australian tax system.
Have you or others come across this issue before?
Many thanks
Phil Johnson
Melbourne
Thanks for the feedback Phil. That's a shame regarding the tax. It's not a situation I am familiar with as we tend to only deal with UK based clients.
I got a federal civil service pension. I started 23 years ago at age 68. Lucky me.
The Dark Arts sums it up pretty well. My DB scheme normal retirement age was 55..lucky me, but capped at 5% inflation. And a reduction on the basic salary was used at outset of payment to factor in the state pension. All of which I was well aware, and yet the scheme still has the biggest deficit in any company in the UK.
However, still delighted to have..I hope for my duration...a guaranteed amount coming in. My Sipp however will give me the bigger income.
Thanks for the comment Michael. Always interesting to hear real life stories. It sounds like you have a good mix there.
Did the same to me and didn't find out for a year,7 years never goes up,
I am in a DB scheme which applies State Pension Clawback at any age. Even 50.
A definite dark art!
@@carlrobertsonmoney I hope the estimates we get take this into account. Otherwise might explain why some people complain they did receive the pension they expected.
I'm looking to retire soon and have both DB and DC pensions. I have 2 yrs to wait for state pension. Which should I take first and why?
I was planning to move my DB pension into a SIPP. I received two transfer valuations this year (2022) one in February which expired and another in October. The October valuation was over 30% lower than the earlier one, which was discouraging. I am 55 and looking to take a 25% tax free lump sum (approved by an IFA). I know you do not have a crystal ball but do you feel it might make sense to hold off until 2023. I see bond yields are forecasted to drop slightly and interest rate hikes could slow down? Just interested to hear another point of view on this please. Many thanks
Hi Sarah. Yes impossible to say what will be right. At the moment it looks like interest rates are forecast to continue rising but things are still uncertain so anything could change. There is just no way to time the market. Having said that. Some investment valuations are still lower than they were 12 months so at least once transferred you new fund has more chance to grow. Again no guarantee though.
You might have ironed your shirt.
𝔭𝔯𝔬𝔪𝔬𝔰𝔪 💐