Cashing in a final salary pension to use in P2P

Mar 2, 2016 21:16:01 GMT pikestaff said:

Mar 2, 2016 18:44:07 GMT alanp said:

WoW, amazing CETV conversion rate.

Couple of years older than you and mine was at just under 12 * Age 65 Estimated Pension.

Not necessarily comparing like with like.  Different schemes have different rights to increases, which will change the numbers significantly.  My guess is your quote was based on projected pension assuming annual increases.  (The clue is the word "estimated".) The other quote probably was not, but still seems high. 

Some closed company schemes that are winding down have enhanced the transfer payments to closer to the liability for an insurance company price to buy out the liabilities that the projected present value of payments to that pensioner at current assumed returns.

Re questions to ask, there is also the issue of "how long the market might stay below long term average". If others estimates that the headline 12% will yield 7% long term, I would expect that property backed loans will show few losses except in a property downturn. If this was one year in 6, that is a 15% absolute loss on average every 6 years. Also some might say that there is a significant risk of the next cycle being much worse than average due to previous inflated prices (UK property losing its "safe-haven" premium and investibility due to increased rates and loss of investors on a Brexit).