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Section 32 GMP Pension 2015

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monica123_2
monica123_2 Posts: 4 Newbie
in Pensions, annuities & retirement planning
I have Section 32 Pension, with AVIVA from 1981 to 1991. It's now worth £65,000, I am 57. AVIVA have told me there's not enough to give me a GMP now.


Does anyone know if the 2015 Pension changes will allow me to take it all or a lump sum? Or will Section 32 Pension be overlooked?

I've searched numerous websites and it's still not clear.

Many thanks

Comments

  • Your_Hero
    Your_Hero Posts: 883 Forumite
    edited 7 October 2014 at 1:00PM
    Section 32 rules will remain. You cannot take it until age 65, or earlier if the GMP can be met.

    You cannot take it as a lump sum. It provides a Guaranteed Minimum Pension, i.e. an annuity/income for life, plus a 50% spouse's pension upon death. No tax free cash is payable on the GMP element. Only the excess (if any) over GMP can pay the tax-free cash.

    You may be able to take the S32 as a lump sum if you are in serious ill health but, even then, other restrictions apply.
    Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.

    Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.
  • PaulCooper
    PaulCooper Posts: 296 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Just to add to what Yourhero has stated.
    I've got one of these policies and I've asked the provider in the past if I can take the pension early. The stock reply is, there isn't sufficient funds in pension pot for them to honour the guaranteed amount early.
    Fair enough, so I will wait until the date the pension is due. The provider then has to honour the guaranteed minimum amount, whether or not they have the funds in the pot.
    In my case, there is a very valuable GAR of 9.9%, so whatever happens in April 2015, I'll leave it alone and hope I remember the contractural due date
    Paul
  • monica123_2
    monica123_2 Posts: 4 Newbie
    So, in 2015 Section 32 Pension will remain the same or there may be changed.
  • monica123_2
    monica123_2 Posts: 4 Newbie
    Sorry - should have read may be changes.
  • Your_Hero
    Your_Hero Posts: 883 Forumite
    monica123 wrote: »
    Sorry - should have read may be changes.
    Section 32 rules will remain the same. So no changes.
    Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.

    Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.
  • xylophone
    xylophone Posts: 45,604 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You cannot take it until age 65,

    If the OP is female, GMP age was and still is 60?

    http://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/
  • Your_Hero
    Your_Hero Posts: 883 Forumite
    xylophone wrote: »
    If the OP is female, GMP age was and still is 60?

    http://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/
    Sorry you are correct. I wasn't paying attention to OP's user name.
    Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.

    Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.
  • little_monkey
    little_monkey Posts: 910 Forumite
    looks like aviva and Friends Life are hooking up together.

    http://www.bbc.co.uk/news/business-30154323
  • gocat
    gocat Posts: 5,907 Forumite
    Part of the Furniture 1,000 Posts Mortgage-free Glee!
    little_monkey wrote: »
    looks like aviva and Friends Life are hooking up together.

    http://www.bbc.co.uk/news/business-30154323

    Looks interesting. Wonder if will help those with shortfall endowments maturing soon
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