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Graduated Pension & Lump Sum Payments
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JasonHand
Posts: 197 Forumite


Hi,
I'm hoping somebody can help.
My Father in Law many years ago started paying into a graduated pension and was told at the time when he hit the pensionable age he would be able to collect these contributions in one lump sum.
Now that time has come he has been told that this is no longer the case and he will simply be paid the extra amount into his state pension.
I'm no expert whatsoever when it comes to Pensions. But surely these contributions can be paid back in one lump sum can't they?
I appreciate the level of detail I've given here is a tad vague but I would be very grateful for any advice.
Thank you very much
Jason
I'm hoping somebody can help.
My Father in Law many years ago started paying into a graduated pension and was told at the time when he hit the pensionable age he would be able to collect these contributions in one lump sum.
Now that time has come he has been told that this is no longer the case and he will simply be paid the extra amount into his state pension.
I'm no expert whatsoever when it comes to Pensions. But surely these contributions can be paid back in one lump sum can't they?
I appreciate the level of detail I've given here is a tad vague but I would be very grateful for any advice.
Thank you very much
Jason
0
Comments
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http://www.financialadvice.net/state_graduated_retirement_pension_scheme/zone/354
Graduated retirement benefit? It just means a small addition ( a couple of pounds a week?) to the State pension.0 -
Grad was shown separately on the payslip all those years ago but it wasnt optional. It was the forerunner to SERPS / S2P.
My contributions were due to get me around £5.00 a week the last time I got a detailed breakdown of my additional pension (when the Pensions Forecast used to give this breakdown, now they just give the total of Additional Pension in all it's forms).0 -
Graduated pension was a scheme were for every £7/10/0 (£7.50) of NI paid towards a pension by a man (some went for other purposes) you earned a unit worth an extra 6d (2.5p) a week pension, up to a maximum of 86 units, ie an additional pension of 43/- (£2.15) per week.
Women needed to pay more for a unit (£9) and had a lower maximum number of units (72), based on longer life expectancy and earlier pension age.
The real loss of value in this scheme was that nothing was indexed in its whole life (contributions or pension) between 1961-1975. The pension unit has been indexed since 1978 though, and is now worth 12.79p, so a maximum pension of £11 per week. If it had been indexed from 1961 it would be about three times that.0
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