is this mis-selling?

MrChips

sunshine54 wrote: »

im afraid i can't contribute more than 40 years payments, so i will stop paying in at 58 and have to wait wait 7 years till i can draw on it (health permitting).

You won't have to wait that long - you can continue to draw the 30 years of benefits already accrued at age 60 as before on the same terms. You can probably take the other ten years worth at that point too, but this will probably be reduced for early payment. You may even to be able to take flexible retirement whereby you start receiving your pension and continue to work.

Regarding ill health, if you do suffer from ill health you may be entitled to receive your benefits early.

sunshine54

thanks mrchips, so my pension to date is protected with the original terms,
thats a lot better.

so any changes now, will only affect my last 10 years.
in that case i wasn't mis-sold. the pension i entered into is honoured up till now anyway,

i get 30/80th at 60
and 10/80th at 65
is that right?

MrChips

Kind of. In practice you would probably take it all at once when you retire. If you retire at age 60, you will get 30/80 unreduced and 10/80 reduced. If you retire at 65 you will get it all unreduced.

If you can take flexible retirement (check the Rules of the scheme, but most schemes offer this since 2006) you could take the 30/80 at age 60, continue to work until 65 and then take the final 10/80 then. The final 10/80 would also be based on a later (presumably higher) final salary.

MikeJones_2

Hi sunshine 54,

MrChips wrote: »

Kind of. In practice you would probably take it all at once when you retire. If you retire at age 60, you will get 30/80 unreduced and 10/80 reduced. If you retire at 65 you will get it all unreduced.

If you are considering this (retiring at age 65, thereby deferring taking the majority of your benefits for 5 years), you might even get an enhancement to the benefits you were entitled to take at age 60, but which you chose not to. Ask the scheme administrators, Pensions or HR Manager.

Mike

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.