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  • FIRST POST
    • Tevion1
    • By Tevion1 10th Jul 17, 2:20 PM
    • 2Posts
    • 0Thanks
    Tevion1
    Guaranteed Minimum Pension Calculator - anyone tried it ?
    • #1
    • 10th Jul 17, 2:20 PM
    Guaranteed Minimum Pension Calculator - anyone tried it ? 10th Jul 17 at 2:20 PM
    Hi everyone,


    My first post here, having lurked around for a while reading up on all the great information in different posts. As there are obviously lots of people with far more understanding of pensions than I have, I'm hoping you can provide general advice please (I know specific advice would need lots more info):


    There seems to be a single Guaranteed Minimum Calculator available on the internet, from a company called PXP - pxp.ltd.uk/GMPCalculator
    (sorry - as a first time poster, the forum wont let me post this as a link - will try and post as an update). It seems to be the only tool I can find to help anyone who wants to understand what their GMP might be.

    I'm wondering if anyone has tried it ? Does it seem to give a reasonably accurate figure ?

    I'm asking because I'm hoping to take a Civil Service Pension from next year when I reach 50 (this is allowed under the rules, although obviously it will be actuarially reduced by approx. 50%).

    In order to understand whether I will be able to take it, I need to know whether that rough 50% figure will meet my Guaranteed Minimum Pension requirements. I've approached my pension provider, but they say they won't work out the figures, and tell me whether I will be able to claim the pension at age 50 until I actually apply next year. I do understand its a very complicated calculation, but it would help my planning significantly if I know whether I stand a good change of taking my pension from next year or not.

    I tried putting my old salary info into the PXP calculator (I earned less than £15000 each year between January 1988 and December 1997). Even if I put £15000 in for each year, the calculator indicates my Guaranteed Minimum Pension would come to under £4000, which would be well covered by the pension I'd be claiming (approx. £7500), so hopefully would mean I can take it.

    Not asking for anything too complicated in answer (I'm cross eyed from reading what GMP is and how its uprated!), or answers about my specific circumstances as I know that needs far more info, but it would be really helpful if anyone knows if the calculator on the link above provides a reasonably accurate GMP calculation ?


    Or if anyone knows very roughly (ie for illustrative purposes) how much a GMP figure might be if you earned say £15000 for every year when the GMP might be calculated (for me, that's Jan 88 - Dec 97).

    Any help very gratefully accepted !
Page 1
    • Tevion1
    • By Tevion1 10th Jul 17, 2:22 PM
    • 2 Posts
    • 0 Thanks
    Tevion1
    • #2
    • 10th Jul 17, 2:22 PM
    • #2
    • 10th Jul 17, 2:22 PM
    Sorry - forgot to add - I'm female, born November 1968. And sorry, but the forum still won't let me post the link to the PXP calculator :-(
    • fifeken
    • By fifeken 10th Jul 17, 5:05 PM
    • 2,138 Posts
    • 1,103 Thanks
    fifeken
    • #3
    • 10th Jul 17, 5:05 PM
    • #3
    • 10th Jul 17, 5:05 PM
    I can't answer your question, but here's a link to the calculator:

    https://www.pxp.ltd.uk/GMPCalculator.aspx
    • vvvvvvvvvvvvvvvv
    • By vvvvvvvvvvvvvvvv 10th Jul 17, 5:13 PM
    • 906 Posts
    • 1,390 Thanks
    vvvvvvvvvvvvvvvv
    • #4
    • 10th Jul 17, 5:13 PM
    • #4
    • 10th Jul 17, 5:13 PM
    what does CO stand for?
    • greenglide
    • By greenglide 10th Jul 17, 5:27 PM
    • 2,740 Posts
    • 1,745 Thanks
    greenglide
    • #5
    • 10th Jul 17, 5:27 PM
    • #5
    • 10th Jul 17, 5:27 PM
    Contracted Out usually. GMP is only accrued by being contracted out.
    • vvvvvvvvvvvvvvvv
    • By vvvvvvvvvvvvvvvv 10th Jul 17, 5:36 PM
    • 906 Posts
    • 1,390 Thanks
    vvvvvvvvvvvvvvvv
    • #6
    • 10th Jul 17, 5:36 PM
    • #6
    • 10th Jul 17, 5:36 PM
    On some years it asks for contributions and other years earnings.Why is that?

    upto 1986-87 in asks for contribution.After that year upto 1996-97 it asks for earnings.
    Last edited by vvvvvvvvvvvvvvvv; 10-07-2017 at 5:39 PM.
    • Advice4sue
    • By Advice4sue 11th Jul 17, 4:27 PM
    • 7 Posts
    • 2 Thanks
    Advice4sue
    • #7
    • 11th Jul 17, 4:27 PM
    • #7
    • 11th Jul 17, 4:27 PM
    Not sure if you can see my post from yesterday asking about similar situation
    (but from 55). The answers may help you a bit
    • Suffolk lass
    • By Suffolk lass 12th Jul 17, 11:58 AM
    • 1,361 Posts
    • 16,137 Thanks
    Suffolk lass
    • #8
    • 12th Jul 17, 11:58 AM
    • #8
    • 12th Jul 17, 11:58 AM
    I don't know about the calculator you are using but I do know how to calculate your pension based on a civil service pension between January 88 and December 1997.

    You were a member of what was then called the Principle Civil Service Pension Scheme. this was the only one on offer at that time. The way you calculate your accrued benefits is to multiply your greatest 12 months of earnings within the last three years you worked for them (usually this will be your final year, due to pay increases, but if you worked shifts, received an on-call allowance, or did a period on temporary promotion, any of these might mean that a period prior to the last 12 months is better).

    Let us assume your earnings were £15,000 for your last year. The calculation to use is then:

    10x15000/80 = so ten years times 15000 salary divided by 80 (each completed year earned you 1/80th of your salary - so for you this was £1,875.

    What has happened since then is that your accrued (reserved) total will have been index-linked. If you look back at the annual September RPI figures for every year between 1998 and 2010, and then the CPI index from 2011 to 2016. this will give you the annual indexation figure for your pension that is applied the following April.

    This link has the RPI and CPI figures - http://www.swanlowpark.co.uk/consumer-price-index.jsp

    So to illustrate -
    3.2 in 98 = £1935
    1.1 in 99 = £1956
    3.3 in 00 = £2020
    1.7 in 01 = £2055
    1.7 in 02 = £2090
    2.8 in 03 = £2148
    3.1 in 04 = £2215
    2.7 in 05 = £2275
    3.6 in 06 = £2356
    3.9 in 07 = £2448
    5.0 in 08 = £2571
    -1.4 in 09 = no change
    4.6 in 10 = £2689

    Then CPI from 2011

    5.2 in 11 = £2987
    2.2 in 12 = £3053
    2.7 in 13 = £3136
    1.2 in 14 = £3173
    -0.1 in 15 = no change
    1.0 in 16 = £3205

    Obviously these are approximate numbers. You are right about a 50% reduction, the current actuarial reduction is based on 5% for each year you take your pension early. Members of the old PCSPS have a reserved right to draw their pension from age 50 (or in full at 60). By leaving the scheme in December 97 you should have that reserved right. Your reasons for wanting to draw it at age 50 are your own but 50% is a lot to give up and a £1600ish isn't enough to live on.

    PCSPS is now described as Classic if you want to read the scheme guide. It is now closed to new members and only people who were already 50 in (I think) April 2012 have a further reserved right to see out their service without having to move to the new scene at some point.
    MFiT T4 #2 update 25.95% after Q5
    Save £12k in 2017 #64 - £5617.21/£5500 (51.64%/50%) after June - my annual target is £11,000 (Save £12k in 2016 thread £10,488.04/£10,000)
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