Not a penny more, not a penny less problems with transfer values Clare Hobro Younger Members Convent

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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

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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.

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What is a pension transfer value?

• Your ideas please!

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Who cares how much it is?
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Pension, lovely pension, how much will you give
me for this prime pension?

• What transfer amount would be fair?

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What if scheme is underfunded?

• Is it fair to pay full TV?
• If not fair, what would you do?

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What data is needed
?
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Men are from Mars, women are from Venus

• So should their transfer values be different?
• What about young and old?

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How much is your pension worth?

• Peanuts?
• More than your house?
• More than your car?

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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?
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Too high, too low?

• TVs were generally calculated as .
• This was too low. Why?.. ...
• This was too high. Why?......
• The big pensions lock in ..

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Legislation and guidance says..
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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?

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Thank you!

• Clare Hobro
• 2 December 2003
• Younger Members Convention
• Clare.Hobro_at_HewittBaconWoodrow.com