LTA instead of DB transfer

Working on a DB case. Client 60 now, no intention of retiring until 70 and doesn't want/need income or TFC. Main driver for wanting to consider a transfer is death benefits for wife/son as has other wealth/assets so may never spend all of pension, but then again not wealthy enough to completely write off. Scheme gives 7.5% p.a. late retirement increase post 60. Obviously, that is a very high level precis so doesn't cover all the nitty gritty! 

I'm planning on raising with the adviser concerned the alternative of the client taking out a 10 year LTA to age 70 on, say, CETV (or CETV plus growth to 70), as my view is that would leave the client with both options still open in the future i.e. take DB or transfer to DC, whilst still ensuring that if they did pop their clogs early wife/son would still get equivalent lump sum (plus spouse's pension). LTA premium is £65 to £90 pm and client has surplus income to cover whilst working.

Do you think that's a reasonable alternative option to raise/cover off?
Jonny (paraflex)


  • richallumrichallum Administrator
    Sounds like a good plan but would there be a restriction on being able to transfer if he defers past NRA?

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. Republican.

  • Not sure, but will ask the question. Thx
    Jonny (paraflex)
  • PeterMPeterM Member
    Would it be worth looking at a whole of life policy as well as the LTA ,as part of the  life cover option?  

    It would give the client the option of continuing the life cover at age 70 regardless of their health and would mean that you would be covered in the event that the client got to age 70 and decided to take the DB scheme  but still wanted to keep the life cover. 
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