Deferred db scheme

If I work with the numbers you outline, then the DB figure might be :
- Full Pension of €37,000, or
- Lump sum of €100,000 Plus
- Reduced Pension of c€26,000 (my estimate)
On the other hand you might get a Transfer Value of c€800,000 into a BOB, which would allow you to :
- Take a lump sum of €200,000 tax free (25%)
- invest c€600,000 into an ARF

The attraction of the latter option is getting an extra €100,000 tax free and maybe you might be leaving some capital to children when both you are your spouse are deceased,BUT
- you give up the security of a guaranteed income for life (subject to scheme remaining fully funded)
- you have to make ongoing investment decisions for the ARF
- you must draw down a minimum of 4% of the ARF up to age 70, and 5% thereafter
- you have to accept that the value of the ARF will fluctuate, based on the investment profile you adopt
- unless you earn 4% or 5% (net of charges), the value of the ARF will gradually reduce (as will the 4% or 5% drawdown)
- depending on how long you live, you could outlive the fund (also depends on investment growth and rate of income drawdown).
So it might be attractive to opt for the extra tax free cash (the €200,000) but it comes with risks. Clearly, if your health was poor, if you family medical history is poor, then the BOB route might be more attractive. If however your health is good, your family history is good, then the security of a guaranteed income might be a priority.
Not an easy (or simple) decision.
Conan, you've been very good coming back to me. With regard to all of the this, it is the DB that I find the hardest to get comfortable with regardless of the rest of our financial situation. Up until a very short time ago, I was so happy with the DB pension and grateful for the guaranteed income. I suppose speaking to a Financial advisor, seeing 800000 written down, having the state pension paid on top of the 4% drawndown, instead of the DB reducing by the state pension amount and getting the higher tax free amount has caused me to stop and reassess. I don't want to be greedy but I don't want to be tunnel visioned either. I will take all the points above and consider them. Thank you again
 
It’s easy to get blinded by the telephone number transfer value

i set out the issues for consideration here https://joom.ag/3zKC

There are some strategies that you can consider and certainly worth getting a second opinion.

 
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