Pension company not telling me what my pots worth

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  • sandsy
    sandsy Posts: 1,718 Forumite
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    singhini wrote: »
    I pay £26,000 annually in IT and NI anyway, what difference is another £32k going to make

    Around 6-7 years of £4.5k worth of index linked income.
  • hyubh
    hyubh Posts: 3,531 Forumite
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    singhini wrote: »
    The elephant in the room for me is the fact the pension fund is circa £588 million short and their intending to put £33million in to it until 2027

    As well as what (in particular) Malthusian has said, were the sponsoring employer to fail, unless the pension scheme's trustees successfully argue that it can remain free-standing, it will enter the Pension Protection Fund and the amount of 'compensation' members receive (i.e. level of pension in the PPF) will be calculated in a standard fashion, relative to the scheme pension lost, that doesn't take into account the funding level of the scheme when it ceased.

    Conversely, if the scheme remains formally in deficit and but the sponsoring employer stays around, the funding level won't enable the employer to just reduce benefits accordingly. At most a very good funding level might increase the chance of the scheme not entering the PPF were the sponsoring employer to go bust... but notwithstanding certain high-profile cases, not entering the PPF in such a situation would be pretty unlikely.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    singhini wrote: »
    Thanks for everyone's comments and suggestions but if taking the money out and holding it in my bank account makes me happy then I don't see what's wrong with that.

    You wont be allowed to, that's what's wrong.
  • Silvertabby
    Silvertabby Posts: 9,010 Forumite
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    You wont be allowed to, that's what's wrong.

    He could if he transfers his DB benefits to a personal pension/SIPP - with all the costs that involves.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    Silvertabby wrote: »
    He could if he transfers his DB benefits to a personal pension/SIPP - with all the costs that involves.

    Not if he doesn't take regulated advice and there's no indication that he accepts he will do this.
  • Malthusian
    Malthusian Posts: 10,930 Forumite
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    singhini wrote: »
    I pay £26,000 annually in IT and NI anyway, what difference is another £32k going to make

    When you set up my Direct Debit to pay me the £2,625 a year that you don't care about, could you also send me a lump sum of £32,000?

    That's the difference.
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    singhini wrote: »
    I pay £26,000 annually in IT and NI anyway, what difference is another £32k going to make

    I think what others are trying to say is apply a bit of thought to tax bands and thresholds as keeping the money in a pension pot and drawing it down bit by bit when you're highest tax rate is only 20% might be a tad more sensible than paying 40% or even 45% tax on some of it.
  • Silvertabby
    Silvertabby Posts: 9,010 Forumite
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    “ He could if he transfers his DB benefits to a personal pension/SIPP - with all the costs that involves.
    Originally posted by Silvertabby ”
    Not if he doesn't take regulated advice and there's no indication that he accepts he will do this. Posted by bigadaj

    That's what I meant by costs. If OP won't pay, then his DB pension is going nowhere.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    Silvertabby wrote: »
    That's what I meant by costs. If OP won't pay, then his DB pension is going nowhere.

    I don't think it's the cost actually, it's just a set view that complains it's all too complicated and the world is against him.
  • mickw488
    mickw488 Posts: 3 Newbie
    I agree with others that £3500 index-linked for less than ten years of contributions is actually very good (schemes which offered 1/40th per year of service were pretty generous). £3500 is close to half the new state pension, which needs 35 years of contributions.
    To buy a £3500 annuity at age 65, index linked, would I think cost at least £100,000 today, so maybe the £80000 offer is a little low but not crazy.
    Obviously the decision on whether to take the pension or convert to cash is yours alone - best of luck for the future!
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