I transferred out my defined benefit pensions. This is why you shouldn’t
In this day and age, it’s imperative to think carefully before giving up a guaranteed income for life Baroness Altmann is a member of the House of Lords and was pensions minister from May 2015 until July 2016 Credit: Chris McAndrew / UK Parliament A defined benefit (DB) pension has long been the holy grail of retirement. With guaranteed payouts for life, often rising each year with inflation, they can remove that major worry of retirement: running out of money. However, one of the few downsides of people living longer nowadays is the rapid rise in the cost of these pensions. They’ve all but disappeared from the private sector, and even though public sector workers still receive them, they’re less generous than they were. But almost a decade ago, I did something I would never advise today: I cashed in three DB pensions. When you’re considering such a move, you’re given a cash equivalent transfer value (CETV). This is the amount your scheme will pay into your defined contribution (DC) p...