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  • FIRST POST
    • Birdy12
    • By Birdy12 19th May 17, 5:59 AM
    • 562Posts
    • 987Thanks
    Birdy12
    DC or DB pension?
    • #1
    • 19th May 17, 5:59 AM
    DC or DB pension? 19th May 17 at 5:59 AM
    I have 2 pensions relating to previous employers (one with Aviva & one with Prudential). This may sound like a stupid question, however, how do I know if each pension is a DC one or a DB one? I'll be honest, I don't know what wording to look out for, on the paperwork I have, to determine what type each pension is.

    I'm now paying into a workplace pension, with The People's Pension. Am I correct in thinking that a workplace pension is a DC pension?

    Cheers, B
    It's wouldn't have not wouldn't of, shouldn't have not shouldn't of and couldn't have not couldn't of. Geddit?
Page 1
    • JoeCrystal
    • By JoeCrystal 19th May 17, 6:54 AM
    • 1,292 Posts
    • 755 Thanks
    JoeCrystal
    • #2
    • 19th May 17, 6:54 AM
    • #2
    • 19th May 17, 6:54 AM
    Do you have the names of the schemes with Aviva and Prudential? That might help. Although from the sound of it, it is more likely than not that they are DC pension schemes.
    • GunJack
    • By GunJack 19th May 17, 7:45 AM
    • 9,833 Posts
    • 7,324 Thanks
    GunJack
    • #3
    • 19th May 17, 7:45 AM
    • #3
    • 19th May 17, 7:45 AM
    phone them and ask them
    ......Gettin' There, Wherever There is......
    • xylophone
    • By xylophone 19th May 17, 8:17 AM
    • 23,412 Posts
    • 13,608 Thanks
    xylophone
    • #4
    • 19th May 17, 8:17 AM
    • #4
    • 19th May 17, 8:17 AM
    The People's Pension is DC.

    The other two are likely to be DC but may possibly have some form of safeguarded benefits (Guaranteed Annuity Rate)/S32 with GMP.

    Do you receive annual statements/updates?
    • Birdy12
    • By Birdy12 19th May 17, 8:42 AM
    • 562 Posts
    • 987 Thanks
    Birdy12
    • #5
    • 19th May 17, 8:42 AM
    • #5
    • 19th May 17, 8:42 AM
    Think I need more sleep; just noticed the address for Aviva starts 'Defined Benefits Administration Team'. Honestly, I wonder about me sometimes.

    I will phone the Pru as I'm still unsure on that one. It doesn't have a specific title. I do know that my previous company passed the handling of the pension scheme over to Prudential in 2004.

    It's a strange one, the Prudential pension; I've noticed that, while the current value of the fund is increasing each year, my 'pension at age 60 expressed in today's terms' has reduced since 2014. I've got a letter from Prudential dated Oct 2013 which mentions 'fund risk rating changes' so that's probably the reason why.

    Just to point out that I like to ask the occasional question on the MSE forums as there's some very knowledgable people on here!

    Cheers, B
    It's wouldn't have not wouldn't of, shouldn't have not shouldn't of and couldn't have not couldn't of. Geddit?
    • Triumph13
    • By Triumph13 19th May 17, 8:58 AM
    • 1,102 Posts
    • 1,342 Thanks
    Triumph13
    • #6
    • 19th May 17, 8:58 AM
    • #6
    • 19th May 17, 8:58 AM
    That Pru one will be a DC.
    Basically if the statements are showing a fund value (and probably an estimated pension at some future date saying something like 'what your pension might be worth at age x', then they are DC. If they are showing an entitlement to a set amount of pension at some future date then they are DB.
    • Birdy12
    • By Birdy12 19th May 17, 9:23 AM
    • 562 Posts
    • 987 Thanks
    Birdy12
    • #7
    • 19th May 17, 9:23 AM
    • #7
    • 19th May 17, 9:23 AM
    Yep, have had Prudential confirm the pension as a DC one. Thanks for all your help.
    It's wouldn't have not wouldn't of, shouldn't have not shouldn't of and couldn't have not couldn't of. Geddit?
    • bostonerimus
    • By bostonerimus 19th May 17, 1:15 PM
    • 1,114 Posts
    • 624 Thanks
    bostonerimus
    • #8
    • 19th May 17, 1:15 PM
    • #8
    • 19th May 17, 1:15 PM
    Yep, have had Prudential confirm the pension as a DC one. Thanks for all your help.
    Originally posted by Birdy12
    Your next bit of research MUST be to find out how your DC pension is invested and how much you are being charged. This is your money and your future.........I marvel that people don't know about the money that they will need to live on for maybe 30 years.
    • Triumph13
    • By Triumph13 19th May 17, 1:27 PM
    • 1,102 Posts
    • 1,342 Thanks
    Triumph13
    • #9
    • 19th May 17, 1:27 PM
    • #9
    • 19th May 17, 1:27 PM
    I marvel that people don't know about the money that they will need to live on for maybe 30 years.
    Originally posted by bostonerimus
    I'm not picking on the OP, but more generally I think it is fairly terrifying that we, as a society, are going to be expecting millions of people with little or no financial knowledge, and in many cases not even too much in the way of numeracy, to manage drawdown pots into their advancing years.
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