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Pension idiot and lack of awareness
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sam velo
Posted: 17 December 2024 16:04:32(UTC)
#1

Joined: 30/04/2020(UTC)
Posts: 65
Me, being the idiot.
For some reason, about 16 years ago, as that’s is when I transferred my DB pension into a SIPP. The transfer value was around £33k but I didn’t remember any correspondence about getting financial advice.

Does anyone know when the rule about getting advice came in - transfer valve above £30k get advice?

I know I am crying over split milk, not sure why I didn’t think it through! Live and learn I guess.
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Hilda Ogden
Posted: 17 December 2024 16:25:50(UTC)
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I could be wrong, but I think it was at the time of Osborne's pension reforms.
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sam velo on 17/12/2024(UTC)
Sara G
Posted: 17 December 2024 16:37:41(UTC)
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Are you worried that you inadvertently broke the rules, or regretting your decision?

If the former, then I think you are safe after all this time. If the latter, then, as you say, no point crying over spilt milk - just focus on ensuring that the SIPP is invested appropriately for your time horizon and risk profile. Whatever your pot is worth today is just a snapshot in any case - you could be congratulating yourself in a few years' time.
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6 users thanked Sara G for this post.
Newbie on 17/12/2024(UTC), sam velo on 17/12/2024(UTC), Coste on 17/12/2024(UTC), Sheerman on 18/12/2024(UTC), Chalky W on 09/01/2025(UTC), dlp6666 on 17/02/2025(UTC)
You have to change your life
Posted: 17 December 2024 16:56:45(UTC)
#4

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That became a requirement ten years ago.
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sam velo on 17/12/2024(UTC)
Wave Action
Posted: 17 December 2024 17:00:21(UTC)
#5

Joined: 30/11/2023(UTC)
Posts: 391
Recent pension reform was around 2014 . This allowed individuals to make withdrawals from a DC pot instead of buying an annuity.

https://commonslibrary.p...arch-briefings/sn06891/

Transfers were subject to trustees approval from DB to another provider for many years well before 2014.
If it was 2008 the transfer value would probably have been at higher bond rates making the transfer value less in cash terms . When bond rates fell to near zero transfer values were very favourable for many holders.

https://www.mpafm.co.uk/...en-dramatically-in-2022/
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sam velo
Posted: 17 December 2024 17:09:00(UTC)
#6

Joined: 30/04/2020(UTC)
Posts: 65
I think, if I am being honest, I am crying over split milk.

I would like to retire at 58 (next year) and this would have helped my income planning.

I have been saving like a madman since certain life events so have built up my SIPP to £350k ( which the £33k TV was the seed money).

I do have a small DB from the current employer but that does not kick in till 65.

I will start a separate thread re: how to actually manage my SIPP once I do retire as I find it confusing and don’t possess much of the financial acumen others have on the forum.
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Helen L on 18/12/2024(UTC)
Hilda Ogden
Posted: 17 December 2024 17:38:50(UTC)
#7

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sam velo;328922 wrote:
I think, if I am being honest, I am crying over split milk.

I would like to retire at 58 (next year) and this would have helped my income planning.

I have been saving like a madman since certain life events so have built up my SIPP to £350k ( which the £33k TV was the seed money).

I do have a small DB from the current employer but that does not kick in till 65.

I will start a separate thread re: how to actually manage my SIPP once I do retire as I find it confusing and don’t possess much of the financial acumen others have on the forum.




I like the 4% rule. That £350k pot will facilitate £14k annual drawdown*. At 58 that's a bit too young IMO to live on that until DB @ 65 and state pension at 67 start. Of course that's just my broad brush opinion and I wish you all the best.

* I advocate a natural yield drawdown not drawing from capital and not over reaching for high yield. Stuff like City of London, Merchants etc.... should do that indefinitely.
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5 users thanked Hilda Ogden for this post.
Keith Clunk on 18/12/2024(UTC), Sheerman on 18/12/2024(UTC), Helen L on 18/12/2024(UTC), Jonathan7 on 21/12/2024(UTC), dlp6666 on 17/02/2025(UTC)
You have to change your life
Posted: 18 December 2024 18:09:09(UTC)
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Much too hard on yourself, sam velo.

You can buy back all the guarantees of your old DB pension with your current SIPP. You also have added flexibility.
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2 users thanked You have to change your life for this post.
Helen L on 18/12/2024(UTC), Chalky W on 09/01/2025(UTC)
You have to change your life
Posted: 19 December 2024 17:36:37(UTC)
#8

Joined: 17/11/2021(UTC)
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sam velo;328922 wrote:
I think, if I am being honest, I am crying over split milk.

I would like to retire at 58 (next year) and this would have helped my income planning.

I have been saving like a madman since certain life events so have built up my SIPP to £350k ( which the £33k TV was the seed money).

I do have a small DB from the current employer but that does not kick in till 65.

I will start a separate thread re: how to actually manage my SIPP once I do retire as I find it confusing and don’t possess much of the financial acumen others have on the forum.




You have put yourself into a good position, sam velo.

Because £33k to £350k over 16 years corresponds with 15% annualised returns - and from glancing at your profile - I'm guessing that you (and Govt) augmented the original "seed money" over the period.

I think you should retire next year, buy that bike and travel the world, otherwise your sixtieth birthday is going to hit you like a ton of bricks. You have a property in London, let it monetise your adventures via AirBnb or its like. Try not to crystallise your SIPP but rather let the pricipal build in its tax-sheltered environment.

One thing for when you come back: resume that part-time job or side-hustle. Not only will it keep your mind sharp, you may fall in like I did with a great bunch of people. It smooths the glidepath to your state-pension years. Hopefully, many of them.
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2 users thanked You have to change your life for this post.
Jay P on 19/12/2024(UTC), dlp6666 on 17/02/2025(UTC)
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