Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • LULULU1
    • By LULULU1 16th Oct 16, 3:37 PM
    • 308Posts
    • 20Thanks
    LULULU1
    Barclays Pension Help
    • #1
    • 16th Oct 16, 3:37 PM
    Barclays Pension Help 16th Oct 16 at 3:37 PM
    My partner worked for Barclays approx 20 years ago and has a small pension valued at £326 per year and a guaranteed tansfer value of £17,554.

    My question is could she take all or part of this as a lump sum.

    If so can she take this at 55 and if she does how much of the £17,554 is she likely to lose.

    Many thanks for any help.

    Lu
Page 1
    • xylophone
    • By xylophone 16th Oct 16, 3:59 PM
    • 19,168 Posts
    • 10,881 Thanks
    xylophone
    • #2
    • 16th Oct 16, 3:59 PM
    • #2
    • 16th Oct 16, 3:59 PM
    It could be possible for her to transfer the pension to a DC arrangement which would enable her to access the pension at (currently) age 55.

    https://www.finalsalarytransfer.com/Uploads/1435150910Tideway-Guide-to-Final-Salary-Pension-Transfers.pdf

    http://www.litrg.org.uk/tax-guides/pensioners-and-tax/what-tax-position-when-i-take-money-my-pension-flexibly

    http://www.pruadviser.co.uk/content/knowledge/oracle_archive/oracle-technical/oracle-tech-september-14/money-purchase-annual-allowance/
    • LULULU1
    • By LULULU1 21st Oct 16, 1:44 PM
    • 308 Posts
    • 20 Thanks
    LULULU1
    • #3
    • 21st Oct 16, 1:44 PM
    • #3
    • 21st Oct 16, 1:44 PM
    Hi There, My partner is looking to open a TD Waterhouse SIPP and to transfer her Barclays pension into it.

    However TD Waterhouse state you cannot transfer final salary pension schemes. The barclays scheme pension scheme is called Barclays Bank UK Retirement Fund (the UKRF) The 1964 Pension Scheme and they have provided a transfer quotation.

    My question is: Is the Barclays Pension Scheme a final salary scheme and therefore they could not set up a SIPP with TD Waterhouse.

    Many thanks in advance
    • xylophone
    • By xylophone 21st Oct 16, 2:18 PM
    • 19,168 Posts
    • 10,881 Thanks
    xylophone
    • #4
    • 21st Oct 16, 2:18 PM
    • #4
    • 21st Oct 16, 2:18 PM
    However TD Waterhouse state you cannot transfer final salary pension schemes.
    This not the case for private DB schemes like Barclays - read Guide referenced in previous and also

    http://www.thepensionsregulator.gov.uk/docs/db-dc-transfers-conversions-regulatory-guidance.pdf

    A DB pension is a "safeguarded benefit" - a transfer out requires the advice of an IFA with the necessary qualification/permissions if the value of the safeguarded benefits is over £30,000.

    It is not the case that DB pensions cannot be transferred, just that TD Waterhouse won't accept such a transfer.

    http://www.tddirectinvesting.co.uk/~/media/uk/pdf/sipp-transfer-factsheet.ashx

    Are there any types of pension I’m unable
    to transfer to TD?
    We are unable to accept transfers in from final salary pension
    schemes (also known as defined benefit schemes) or overseas
    pension schemes.


    TD Waterhouse should have made this point clear to you.
    • xylophone
    • By xylophone 21st Oct 16, 2:29 PM
    • 19,168 Posts
    • 10,881 Thanks
    xylophone
    • #5
    • 21st Oct 16, 2:29 PM
    • #5
    • 21st Oct 16, 2:29 PM
    See also http://www.telegraph.co.uk/pensions-retirement/financial-planning/i-was-forced-to-waste-1k-on-advice-when-all-i-wanted-was-to-move1/

    You will note what is said about Charles Stanley.

    Charles Stanley, too, said it would not accept a defined benefit transfer of a pension “of any size” without positive advice.

    Hargreaves Lansdown would definitely require the positive recommendation of an IFA for a £30,000 + DB transfer - however, the position does not seem to be quite so clear cut for a lower value transfer where advice is not required.

    Your wife might make an enquiry?

    http://www.hl.co.uk/pensions/sipp/transfer-to-the-vantage-sipp
    • Previn
    • By Previn 21st Oct 16, 2:57 PM
    • 212 Posts
    • 133 Thanks
    Previn
    • #6
    • 21st Oct 16, 2:57 PM
    • #6
    • 21st Oct 16, 2:57 PM
    I had a similar sized DB pension, the only SIPP providers I found who would take it on were AJ Bell YouInvest & Iweb.
    I kicked off the process with AJ Bell & it was completed around 3 weeks later with no issues at all.

    If it's the right thing to do for you is another matter though. Its dependent on age, health, any guarantees etc...

    Thanks
    • LULULU1
    • By LULULU1 21st Oct 16, 9:54 PM
    • 308 Posts
    • 20 Thanks
    LULULU1
    • #7
    • 21st Oct 16, 9:54 PM
    • #7
    • 21st Oct 16, 9:54 PM
    Its a small pension with a transfer value of about 18k. She is 50, in good health and has another full pension.

    Im suprised the value is so high given she only worked for Barclays for 2 years........
    • lvader
    • By lvader 22nd Oct 16, 6:56 AM
    • 1,886 Posts
    • 1,601 Thanks
    lvader
    • #8
    • 22nd Oct 16, 6:56 AM
    • #8
    • 22nd Oct 16, 6:56 AM
    I would check that annual amount again, Barclays sometimes show the frozen value from the time employment stopped. The true figure is likely to be several times that amount by the time of retirement. Otherwise the transfer value looks far too generous which it rarely is.
    • LULULU1
    • By LULULU1 22nd Oct 16, 7:26 AM
    • 308 Posts
    • 20 Thanks
    LULULU1
    • #9
    • 22nd Oct 16, 7:26 AM
    • #9
    • 22nd Oct 16, 7:26 AM
    Thank Ivader, Thats exactly what I thought.

    I have actually done an updated guarenteed transfer document which I have printed and it says the same amount. These are some of the details on the print out below:



    Transfer entitlement Guaranteed transfer value £22121
    which includes:
    Scheme pension built up before 6 April 1997
    Transfer value of Guaranteed Minimum Pension (GMP) £10,676

    Guarantee date 21 October 2016 Pension benefits
    GMP built up before 6 April 1988 £0.52
    GMP built up after 5 April 1988 £29.64

    Scheme pension (over the GMP) built up before 6 April 1997 £145.95
    Total Scheme pension £176.11

    The numbers just don't seem to stack up.....Any thoughts
    • bigadaj
    • By bigadaj 22nd Oct 16, 7:37 AM
    • 7,803 Posts
    • 4,757 Thanks
    bigadaj
    I had a similar sized DB pension, the only SIPP providers I found who would take it on were AJ Bell YouInvest & Iweb.
    I kicked off the process with AJ Bell & it was completed around 3 weeks later with no issues at all.

    If it's the right thing to do for you is another matter though. Its dependent on age, health, any guarantees etc...

    Thanks
    Originally posted by Previn
    Though a j bell administer the iWeb sipp, so only one provider really.
    • LULULU1
    • By LULULU1 22nd Oct 16, 7:54 AM
    • 308 Posts
    • 20 Thanks
    LULULU1
    Sorry don't understand your post. Are you saying AJ Bell and IWEB basically same company.
    • Previn
    • By Previn 22nd Oct 16, 9:33 AM
    • 212 Posts
    • 133 Thanks
    Previn
    Sorry don't understand your post. Are you saying AJ Bell and IWEB basically same company.
    Originally posted by LULULU1
    When i spoke to Iweb, they said AJ Bell administer the SIPP on their behalf & had to phone them to approve the transfer.
    So not the same company & they have different charging structures.
    • xylophone
    • By xylophone 22nd Oct 16, 1:46 PM
    • 19,168 Posts
    • 10,881 Thanks
    xylophone
    The numbers just don't seem to stack up.....Any thoughts
    https://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/

    https://www.barnett-waddingham.co.uk/comment-insight/blog/2012/07/24/revaluation-for-early-leavers/

    Your wife's pension has been revaluing in deferment.

    When the pension comes into payment (age 60 with Barclays Scheme), the bank must pay at least the revalued GMP for the duration of the pensioner's life.

    The portion representing post 88 GMP must be increased annually in payment by up to 3% CPI, and the balance by Scheme Rules.

    There will also be a widower's pension.

    In calculating the CETV, the Scheme Actuary will have taken all the above into account.

    Incidentally, has your wife obtained a New State Pension Statement?


    https://www.gov.uk/check-state-pension
    • neilvw
    • By neilvw 22nd Oct 16, 9:45 PM
    • 376 Posts
    • 177 Thanks
    neilvw
    I would add that your partner has been in deferment since she left Barclays in about 1989/1990 - for some 26/27 years deferment revaluation has been racking up, rather more than the twenty years you mentioned.

    (You said she worked for a couple of years at Barclays, and it seems she has a tiny bit of pre-6 April 1988 GMP - hence she worked from c. 1987/88 to c. 1989/90.)

    In the case of the GMP part, that revaluation has possibly been racking up at 7.5% a year.

    Hence that tiny £176.11 per annum accrued by date of leaving is more like £550 today, and would be something like £875 in ten years' time.

    Gilt yields and annuity rates are near historic lows, and these feed into the transfer value calculations which are now producing high values as a consequence.

    I would be very tempted to transfer out, if I were your partner.
    • LULULU1
    • By LULULU1 24th Oct 16, 8:12 PM
    • 308 Posts
    • 20 Thanks
    LULULU1
    So just to be clear the transfer value would be £222121.

    Is that right ???
    • greenglide
    • By greenglide 24th Oct 16, 9:20 PM
    • 2,358 Posts
    • 1,456 Thanks
    greenglide
    would be £222121.
    To many 2s?

    You had said it was £2,121- it would be an order of magnitude increase!
    • LULULU1
    • By LULULU1 25th Oct 16, 8:22 PM
    • 308 Posts
    • 20 Thanks
    LULULU1
    Yes it is £22,121.

    Still seems a lot but Happy Daze if its right......

    Thanks
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

239Posts Today

1,451Users online

Martin's Twitter