we lose out on pension

[hpateli]

I may have got this wrong, but since we have had a change of pension schemes twice and a third on the way, does that not mean that because the previous schemes are now closed.the new scheme starts from zero where as if we were allowed to transfer the pot to the new scheme we would have
higher pensions because we start with a lump sum instead of zero.

[RobertT]

By the sounds of it you have benefits with both the RMSPS and RMPP and you're in either section A, B or C?
If so, you've got it wrong!

The pension benefits you've currently got are as good as guaranteed and will pay out an inflation proofed income for life. They have NRA's of 60 and 65.

But with the new CDC pension, your benefits could go down depending on the returns on the investments and it has an NRA of 67.

Why would you want to forgo a full unreduced pension at 60 & 65 in favour of 67? You would get significantly less!

However, there is the possibility that DC pensions could be transferred into CDC at some point in the future, pending the necessary legislation. See this recent article: viewtopic.php?f=27&t=102625

That would mean those with a DC pension having three options at retirement instead of the current two:

Annuity
Drawdown
CDC decumulation

[tractorboy2]

I may have this wrong , not knowing how this would work.

But why would anyone transfer a DC pension into a CDC pension where others would benefit. ?

[RobertT]

The idea is that the transferee would benefit, as the main proponents of CDC believe it will give a better outcome than DC.

In practice the biggest winners with any form of income based pension such as a DB scheme, an annuity or CDC, are those that live the longest. If you die young, then other people will benefit in one way or another.

Luckily, figures from the RMSPS suggest the average lifespan of it's members is equal to, if not a little higher, than the national average. Hopefully that continues to be the case going forward.

Drawdown of course is a different thing.

[hpateli]

thanks guys for you replies

[JKSmudge]

That would mean those with a DC pension having three options at retirement instead of the current two:

Annuity
Drawdown
CDC decumulation

Surely there's a 4th..... take the lot as a lump sum (tax deducted).

[RobertT]

That would mean those with a DC pension having three options at retirement instead of the current two:

Annuity
Drawdown
CDC decumulation

Surely there's a 4th..... take the lot as a lump sum (tax deducted).

Yes that's also an option, but shouldn't really be a sensible one for most people.

[JKSmudge]

Fortunately I'm not most people