Guaranteed Minimum Pension

stillucan

Can anyone advise please? The way I understand it is, my pension provider has to give me Guaranteed Minimum Pension. They tell me that to do this they have to make up a shortfall of around 40k. i.e. my private pension pot (formerly a company pension) has only achieved 60k and provider needs to make up to around 100k to realise the GMP. My question is, can I still shop around for an annuity for the 100k amount or would I have to stay with existing provider and accept its annuity due to shortfall? Secondly, can I take 25% lump sum of 100k or would it be 60k or would I not be entitled to lump sum at all due to shortfall?

The product is a buy-out bond and I retire Nov '06. Thanks,

dunstonh

If there is a GMP and the provider has to make up the difference at maturity, that difference will not be available to you on an open market option.

Secondly, can I take 25% lump sum of 100k or would it be 60k or would I not be entitled to lump sum at all due to shortfall?

It would be made up of the lower figure normally.

It would be a good idea to get an IFA involved now and start the process of finding out the options. It can take 8-12 weeks sometimes (I have known a few take longer). Most S32s pay commission out upon commencement and if you dont use an IFA, the original person that sold the S32 gets paid the commission (unless they are no longer trading, in which case the insurance company keep it). You do not get enhanced terms so its worth using an IFA as it will, in effect, cost you nothing.

EdInvestor

At least some people have not been losers as a result of the With profits mess.

My question is, can I still shop around for an annuity for the 100k amount or would I have to stay with existing provider and accept its annuity due to shortfall?

You won't be able to shop around with this non-existent money.The provider will give you the Guaranteed Minimum Pension, so you know what you will get.

Secondly, can I take 25% lump sum of 100k or would it be 60k or would I not be entitled to lump sum at all due to shortfall?

Non-existent money again - so lump sum seems very unlikely. But S32s are complicated so get a pension IFA who knows what they are to help.