Nat West Deferred Pension

Your_Hero

CathA wrote: »

However, the CETV amount has been quoted on each annual statement and there is a massive increase between the 2008 statement (the earliest one I have with a CETV) and the latest one (I'm talking about £35,000 increase).
Can someone explain this and what relevance it has to my final pension, if any?

With all things being equal, the CETV will naturally go up the closer you get to retirement. In your case, the 2014 CETV is a lot higher than 2008s because it has been 'discounted' by 6 years less.

The CETV is just an indication on the cost to provide you with an equivalent pension if you retired today based on actuarial assumptions. This does not change your final pension and does not mean your pension has improved or reduced.

CathA

Thank you both for that information. I'm getting a much better understanding of pensions now and your help is much appreciated.

CathA

Only an entirely different matter to transferring the pension, I would appreciate your thoughts on the following.

As I've already said, this pension was entirely non-contributory and can be taken from 55. If I take it at 55 (please don't howl with outrage at the actuarial reduction, I know!) I can take a lump sum and a reduced pension. I can take it at 60, also with a lump sum but no actuarial reduction. The difference in the 2 pensions at these different dates is roughly £1000 per year.

If I took the lump sum and pension at 55, could I start a personal pension, putting £2880 per year in it and gain the tax relief without falling foul of any tax laws? I do work part time so would be putting in money from my pay, rather than savings/lump sum and using the lump sum as to replace income.

I realise that 5 years before NPD in this scheme means I'd be getting less money, but the way I look at it is that I'll be getting money that I never would have had otherwise and that I've never paid into. Free money and the possible benefit of something back from the Government. Thanks.

atush

In theory yes you could do this, but do you have another DC pension running now, and how much annually do you put in?

CathA

atush wrote: »

In theory yes you could do this, but do you have another DC pension running now, and how much annually do you put in?

At the moment I have a DC workplace pension with John Lewis but after 3 years (next March) it becomes a defined benefit final salary pension. Very lucky, I know, to have 3 final salary pension schemes.

atush

ok, so if you do into your DB pension, that will use some of your allowance.

I am not sure when the new regs come into place where if you take a pension, you can only put in 10K per year so you need to check these rules and see how they might affect you. AS our 2880/3600 will be part of your allowance.

CathA

atush wrote: »

ok, so if you do into your DB pension, that will use some of your allowance.

I am not sure when the new regs come into place where if you take a pension, you can only put in 10K per year so you need to check these rules and see how they might affect you. AS our 2880/3600 will be part of your allowance.

So what's the tax situation if I pay £2880 into my John Lewis pension as AVC's? Would I get the tax relief then? I work part-time, and have quite a lot of my tax free allowance unused. Thank you.

atush

it isn't your tax free allowance we are talking aoubt, it is your annual pension allowance.

Which is, either 40K or your entire income (from work not savings and investments?) which ever is lower. but, if you are in a pension scheme now, you do have 3 years excess allowance to use.

CathA

atush wrote: »

it isn't your tax free allowance we are talking aoubt, it is your annual pension allowance.

Which is, either 40K or your entire income (from work not savings and investments?) which ever is lower. but, if you are in a pension scheme now, you do have 3 years excess allowance to use.

Is that annual pension allowance what you can pay into a pension, rather than what you can draw from a pension?

atush

yes,

And given all the Qs you have asked, and all the answers given, I am still thinking yo may actually need/want an IFa.