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Not a penny more, not a penny less – problems with transfer values Clare Hobro Younger Members’ Convention. 1-2 December 2003 The Glasgow Moat House. Slides for prior publication on website.
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Not a penny more, not a penny less – problems with transfer valuesClare HobroYounger Members’ Convention 1-2 December 2003 The Glasgow Moat House
Slides for prior publication on website • Note these slides say hardly anything, as I am expecting a everyone to contribute ideas and debate during the session.
What is a pension transfer value? • Your ideas please!
Pension, lovely pension, how much will you give me for this prime pension? • What transfer amount would be fair?
What if scheme is underfunded? • Is it fair to pay full TV? • If not fair, what would you do?
Men are from Mars, women are from Venus • So should their transfer values be different? • What about young and old?
How much is your pension worth? • Peanuts? • More than your house? • More than your car?
So what do the figures look like?£5,000 pension at leaving date Age 55, left at 30, retiring at 60? Age 30, leaving now, retiring 65? Age 30, leaving now, retiring 65, scheme 90% funded?
Too high, too low? • TVs were generally calculated as …. • This was too low. Why?.. ... • This was too high. Why?...... • The big pensions lock in …..
Would you accept this transfer value? • Age 55, left at 30, retiring at 60 • Age 30, leaving now, retiring 65 • As above but underfunded • Why put all your eggs into one basket anyway? • And what are you moving to • defined contribution? – taking more risk • defined benefit – how do receiving scheme transfer in terms compare to your TV?
Thank you! Clare Hobro 2 December 2003 Younger Member’s Convention Clare.Hobro@HewittBaconWoodrow.com