How can Pension companies be allowed to keep you in the dark?

Bazofts_Revenge

I am lucky enough to have a deferred final salary pension but as to what it is currently worth I have no idea. I got a statement when I left the company in 2009 stating I would get £10k (at 2009 value) index linked when I retire. Since then all I get is statements about the whole pension fund not my fund. How can I properly plan without knowing?

I see so many horror stories of plans like this failing and people only getting 10% of their pensions.

Just about every other financial product has to send annual statements. How can they be allowed to get away with it?

Lokolo

People only getting 10% of their pensions? Where have you heard such nonsense stories?

A final salary pension scheme has nothing to do with how "your" investments have performed. You haven't chosen the investments, you have your pension outcome already.

itch_for_a_glitch

Why not ring them up, a phone number will be on your annual update.

I have a deferred pension too.

atush

I see so many horror stories of plans like this failing and people only getting 10% of their pensions.

No, you don't. Your pension is set in stone (if public service) or set at 90% of the promised amt (unless more than a set amt over 30K- cant be bothered to remember

Your pension will have been uprated annually by a set amt (say RPI, CPI, or a set % by their rules).The amt this will be, is set in your scheme rules.,

So, why not ask them to send you a booket if you lost yours?

How can they be allowed to get away with it?

They get away with giving you a very good pension.

mania112

Bazofts_Revenge wrote: »

I see so many horror stories of plans like this failing and people only getting 10% of their pensions.

The sort of pension you're talking about means a member can only LOSE 10% of their promised pension. The occurrence of that is very rare.

Horror stories told down the pub should not be relied upon as gospel.

hyubh

Bazofts_Revenge wrote: »

I am lucky enough to have a deferred final salary pension but as to what it is currently worth I have no idea. I got a statement when I left the company in 2009 stating I would get £10k (at 2009 value) index linked when I retire.

It will be about £11085 now.

Since then all I get is statements about the whole pension fund not my fund. How can I properly plan without knowing?

'Final salary pension', 'index linked' - I think you've given yourself some very significant clues... That said, I'm surprised you haven't been receiving annual benefit statements, even if what they say would be pretty predictable.

I see so many horror stories of plans like this failing and people only getting 10% of their pensions.

If that really is your concern, then 'statements about the whole pension fund' is precisely what you want...

bigfreddiel

Bazofts_Revenge wrote: »

I am lucky enough to have a deferred final salary pension

i have one as well, since 1985 with Pearson Group

In 2010 - getting near to my retirement from my current job I needed to know what it was worth.

I hadn't heard from Pearson since 1985, but a 5 minute phone callto the pension admin deptand I had the answer and they sent e my pension forecast statement.

Quite simple and as it grows by 9% per annum its been easy to keep track of it progress

cheers

fj

RichandJ

hyubh wrote: »

It will be about £11085 now.



'Final salary pension', 'index linked' - I think you've given yourself some very significant clues... That said, I'm surprised you haven't been receiving annual benefit statements, even if what they say would be pretty predictable.



If that really is your concern, then 'statements about the whole pension fund' is precisely what you want...

Final salary schemes do not by law* have to provide annual statements to deferred members. You are (should have been) told what the pension is on leaving with a constituent breakdown, e.g. GMP, pre/post 97 element etc, and how each element revalues (increases) in deferment.

An annual statement would be pointless (as well as a significant cost to schemes) as the figure means nothing until actual retirement.

* Defined contribution schemes do.

Linton

Bazofts_Revenge wrote: »

......
Since then all I get is statements about the whole pension fund not my fund. How can I properly plan without knowing?

I see so many horror stories of plans like this failing and people only getting 10% of their pensions.

Just about every other financial product has to send annual statements. How can they be allowed to get away with it?

You dont have a fund, the only fund is the one managed by the trustees which isnt split into individual pensions. You have something far more valuable - a solid guarantee of future income. So you can plan much more accurately than people with funds. They dont know for sure what income they are going to get, you do.

What is this nonsense about people only getting 10% of their pensions?

dunstonh

I am lucky enough to have a deferred final salary pension but as to what it is currently worth I have no idea.

You do know what it is worth. It is a defined benefit scheme. The benefits are defined and you know what they are.

I got a statement when I left the company in 2009 stating I would get £10k (at 2009 value) index linked when I retire. Since then all I get is statements about the whole pension fund not my fund. How can I properly plan without knowing?

Clearly you do know as you say you have been given the benefit statement.

It is not a money purchase pension. It doesnt have a fund value. It has defined benefits. You can more accurately work out what you are getting than a money purchase pension.

I see so many horror stories of plans like this failing and people only getting 10% of their pensions.

Would you like to link some of these horror stories? I would suggest that is complete and utter nonsense. Either you have no such links or you have mischief makers feeding you rubbish (not uncommon in some workplaces)

Just about every other financial product has to send annual statements. How can they be allowed to get away with it?

No they do not. Since when do you get an annual statement on your car insurance, income protection, life assurance? You only get statements on products that have an investment element. Your pension does not have a personal investment element.

Bazofts_Revenge

Google Pilots lose their pensions ( I can't post attatchments) This was one story of company pensions going down. Maybe it would only happen in the US. I have heard of Pension guarantee schemes where 90% is covered. The company who has my pension is gradually becoming more US based and may one day move its base. I just don't like having all my eggs in one basket. I don't recollect getting an update on my scheme in the last year either.

I will write to them and get valuations on all my options. I have a new partner and as such I want her to be looked after. I do not trust 'Trustees' to pay out if I pass away first. Despite filling in a nomination form it is up to the trustees whether they pay out or not. The Sunday Times this week listed such a case where a depenent partner wasn't given a spouses/dependent pension.