Transfer to DC Pension - will it ever happen?

[NorthernBoy]

Okay, so this is one of those ‘what if’ questions regarding pension transfers.

As we all know, you cannot currently transfer your RM NRA 60/65 DB benefits to a defined contribution scheme, only to another DB scheme. However, let’s just say that at some point in the future, the government changed the rules and allowed you to do this.

Let’s says the terms on offer were 40 x annual pension with 25% tax free.

So if your current annual pension was 8k, this would give you 320k of which 80k would be Tax Free and 240k used for drawdown.

My question is two fold:

1. do you think this will ever happen?
2. would you take it, if on offer?

My answer to 1 is that it probably won’t, (buts there’s a slim chance it just might) and secondly would I take it and the answer is probably yes.

I realise there are loads of valid reasons why most people would not transfer, but my question is do you think it will happen and if so, would you transfer?

Am interested what the forums thoughts are.

[RobertT]

You can currently transfer your post 2012 RMPP benefits to a DC scheme by getting a Cash Equivalent Transfer Value. See here.
But don't expect the value to be any higher the normal 20x multiple.

You can only transfer your pre 2012 RMSPS benefits to another DB scheme. See here.

Personally I don't think I would take it and certainly not at 20x pension!

[Woody Guthrie]

If the terms were x40 you would be absolutely crazy not to. Retirement +40 years is incredibly rare. I think a more realistic question would be at what level would you be tempted x20? x25? x30.....?