good news for me i think

McKneff

i am due to retire next october and rang my administrator up and
was told that my pension is not being affected by the present crisis
because i am in a with profits scheme. All the managers changed theirs
a couple of years ago and they are jumping up and down at the moment as they have lost between 20 and 30 percent off theirs and they are within
a few months of retiring.

i think i was overlooked and boy am i glad about it.
Apparently my terminal bonus is affectd but hey, that could be more or it
could be nothing.

Good news for me eh.
Its not a big pension but i will get about 15,000 lump sum without adding
25% of the terminal bonus.:j

EdInvestor

anniehanlon wrote: »

All the managers changed theirs
a couple of years ago and they are jumping up and down at the moment as they have lost between 20 and 30 percent off theirs and they are within
a few months of retiring.Apparently my terminal bonus is affectd but hey, that could be more or it could be nothing.

With profits payouts are expected to be down around 20% over the next couple of years as a result of the market falls.

McKneff

I understand that, thanks, but it was good news that my 'pot' is unaffected. I know also that the yearly bonuses will be affected as well as the terminal bonus.
Still not bad news for me, i dont intend to leave work but to work part time.
Whether i actually take my pension remains to be seen. I will probably post on this board nearer the time

dunstonh

I know also that the yearly bonuses will be affected as well as the terminal bonus.

No indication of that at the moment. The MVR/terminal bonus reductions at their current levels are adequate to cover recent events. Remember yields are very good at the moment and the typical bonus rate is less than the yield. Annual bonus rates arent that good either.

McKneff

Thanks for that dunston, you know some stuff dont you?
i can see from your other posts that you have been a big help to a lot of posters. What goes around comes around.

MikeJones_2

Hi Annie,

anniehanlon wrote: »

...I don't intend to leave work but to work part time. Whether I actually take my pension remains to be seen.

Because your have monies in a with-profits fund and because we don't know much more than that from your post (type, date you commenced, etc), check whether the policy has a Guaranteed Annuity Rate (GAR) as this could be important.

Some policies will only apply the GAR at a specified date e.g. at your Normal Retirement Date. So, if you DIDN'T take your pension at your NRD, you might lose the special GAR.

I acted as a mediator over a recent complaint (I'm a TPAS adviser) and discovered that the policyholder lost her GAR because she didn't draw her pension and continued to work past her NRD (it was her choice and she chose not to). An expensive oversight in her case.

With this type of issue, put your request in writing (letter or email) to the scheme administrators, to be on the safe side.

Hope this helps.

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

EdInvestor

anniehanlon wrote: »

I understand that, thanks, but it was good news that my 'pot' is unaffected.

The only reason it would be unaffected is if you have such a guarantee - a GARor a GMP, as mentioned.

So importnat to check on this and to follow the rules strictly on retirement dates and ages, or you could lose out.

McKneff

thanks Mike and edinvestor, i will check. like you say i dont know much about pensions but my intention is to stay on a work part time and draw my company pension (even though i will pay tax on it) and defer my OAP for a year or so.

the news today was interesting about buying back years on lost contributions as i lost about 20 years ealier on in my life, kids etc. More news today on the cost and returns on this i believe. What are your thoughts on this.

seven-day-weekend

If your State Retirement date is before April 6th 2010 and after 1978 you have been claiming Child Benefit and not earning enough to pay NI, you will be granted Home Responsibilities Protection, up to a maximum of 19 years. This will have the effect of reducing the amount of years you have to pay NI for.

As an example - as my State Retirement date is before April 6th 2010, I have to pay 39 years worth of contributions to get a full Pension. But I have been granted 13 years of HRP. So now I only need to pay 26 years.

I have 24 paid years through working, have paid one year of Voluntary Contributions and will pay my last year next January. I will then have a full Pension.

Get a Pension Forecast here:
http://www.thepensionservice.gov.uk/resourcecentre/e-services/home.asp

You may be pleasantly surprised - I was!

McKneff

does the same rule apply to women who only paid married woman stamp i wonder

seven-day-weekend

Oh no annie, it doesn't sorry.