Understanding Pension Statement

grace

I have received a Pension Statement from an old Scottish Widdows Pension from 1996/7, but I cant understand what its actually telling me.

This is exactly what the letter says word for word (including what I think is a typo).... can some one tell me what it means.

1. Am I still Contracted into SERPS
2. Can I have the 827.19 as a lump sum? and is it worth it.
2. Should I keep it just as it is an do nothing.....


Below are the general details of the policy:-
Type:- Personal Pension Policy
Start Date:- 19th February 1996
Selected Retirement Date:- 12th Fenruary 2026 at age 60
Premium Frequency : Suspended
Premium History: See Below

Date Type Net Value Gross Value

01.03.1996-01.04.1997 Monthly 25.33 33.33
01.05.1997-01.11.1997 Monthly 25366 33.33

Funds :- Mixed (50%) and Untised with Profits (50%) Funds
Current Value: 827.19, this value includes a 11.66 terminal bonus. (14.03.2006)
Charges: 1.48 monthly policy fee and 0.875% fund charge, if these two charges together come to more than 1% then extra bonus units are added to the policy to reduce the charge to 1%.
Contracting Status: Contracted into SERPS
Other Benefits: None

EdInvestor

grace wrote:

1. Am I still Contracted into SERPS

The letter says you are.This appears to be a small pension left over from when you were contracted out for a brief period.

2. Can I have the 827.19 as a lump sum? and is it worth it.

Do you have any other pensions (apart from state pensions), and if so how much are they worth and how old are you?

3. Should I keep it just as it is an do nothing.....

See 2. If you can't take it as a lump sum, you could consider looking to see if it's possible to switch the money into funds which are likely to perform better in the future. The charges at 1% are OK so there is no need to move it from Scottish Widows.

dunstonh

1. Am I still Contracted into SERPS

No.

2. Can I have the 827.19 as a lump sum? and is it worth it.

Not until age 60 and only if your total pensions do not exceed 1% of the lifetime allowance in that tax year. All pensions would need to taken within a 12 month period.

2. Should I keep it just as it is an do nothing.....

Pensions do not make or lose money. It's what you invest in within the pension that performs. The Scot Widows WP fund is going to be a slow performer but the mixed fund has potential for 7% p.a. growth long term average. Scot Widows have a range of funds with free switching so you could look at alternative funds if you are not happy with what you have. Their PPP does have some cracking alternatives.

EdInvestor

1. Am I still Contracted into SERPS

dunstonh wrote:

No.

How do you get that?

Grace quotes the letter as saying:

"Contracting Status: Contracted into SERPS".


Or do you think Grace means contracted out, although she says contracted in?

dunstonh

misread it as contracted out. Sorry.

grace

I gave them a ring, and though I cant have a lump sum I can transfer the sum to any future pension, which I am happy with, cant really expect much more. Considering I had forgotten all about it and only wrote to them on the off chance as I vaguely remembered some paperwork...

margaretclare

grace wrote:

I gave them a ring, and though I cant have a lump sum I can transfer the sum to any future pension, which I am happy with, can't really expect much more. Considering I had forgotten all about it and only wrote to them on the off chance as I vaguely remembered some paperwork...

There are literally billions of pounds out there that people have 'forgotten about' and which are unclaimed - maybe the people are long dead and gone!

You won't ever forget about your money again, will you? As a common TV ad has it: 'If you don't look after your money, who will?'

Keep reading these boards and think about your future options and what you want to do with your money. Again, it's something that only YOU can do.

Best wishes

Margaret Clare