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    • cloud_dog
    • By cloud_dog 16th Sep 17, 1:39 PM
    • 3,254Posts
    • 1,816Thanks
    cloud_dog
    Small Pension - GMP
    • #1
    • 16th Sep 17, 1:39 PM
    Small Pension - GMP 16th Sep 17 at 1:39 PM
    Hi

    Was going to revive my old post from 2006/2007 but 'tis closed, so....

    This question specifically relates to the GMP pension with Aegon.

    Scottish Equitable (Aegon)

    GMP at NRA (60) £1228 (figure all post 88 GMP)
    GMP Revaluation Rate: 7%

    Plan Value (Reserved): £5100
    Transfer Value: £8100

    No mention of MVR being applied if transferred. Not that we are thinking of doing that specifically

    This is obviously one of the older style pensions and Aegon take their pound of flesh each year, selling units to pay the AMC, and the fund has grown slightly (but not significantly) over the years.

    The question I have is...

    A Pension of £1228pa based on a (current) fund value of approx £5100/£8100 sounds great value (for us).

    Firstly, what is the possibility that on obtaining 60 (NRA of plan) Aegon will confirm that there is insufficient funds in the plan (assuming ongoing charges/growth remain equal) to pay the GMP, and would confirm/offer a lower pension? (I know this goes against the concept for the GMP but...)

    Secondly, whilst they are under no obligation to do so, is there any example of pension providers, with these types of GMP liabilities, offering to 'pay off' clients with a larger transfer value?
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
Page 1
    • xylophone
    • By xylophone 16th Sep 17, 2:40 PM
    • 23,446 Posts
    • 13,631 Thanks
    xylophone
    • #2
    • 16th Sep 17, 2:40 PM
    • #2
    • 16th Sep 17, 2:40 PM
    http://www.financialadvice.net/s32_buy_out_plan/zone/1288

    https://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/

    GMP age for your wife is 60.

    You have stated that all GMP is post 88 - it must be index linked in payment by up to 3% CPI.

    Has your wife obtained a new state pension statement?
    • xylophone
    • By xylophone 16th Sep 17, 2:53 PM
    • 23,446 Posts
    • 13,631 Thanks
    xylophone
    • #3
    • 16th Sep 17, 2:53 PM
    • #3
    • 16th Sep 17, 2:53 PM
    Some more SE/Aegon S32 discussions post 12

    http://forums.moneysavingexpert.com/showthread.php?t=5126700
    Last edited by xylophone; 16-09-2017 at 3:45 PM. Reason: typo
    • cloud_dog
    • By cloud_dog 16th Sep 17, 3:19 PM
    • 3,254 Posts
    • 1,816 Thanks
    cloud_dog
    • #4
    • 16th Sep 17, 3:19 PM
    • #4
    • 16th Sep 17, 3:19 PM
    http://www.financialadvice.net/s32_buy_out_plan/zone/1288

    https://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/

    GMP age for your wife is 60.

    You have stated that all GMP is post 88 - it must be index linked in payment by up to 3% CPI.

    Has your wife obtained a new state pension statement?
    Originally posted by xylophone
    Yes, done the SP quote, and she needs to work another 4 years to obtain full SP.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
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