Small pot: Is it better to transfer than leave?

xylophone

I think that the £934 is likely to be the pension on leaving of which
£56.91 was the GMP at leaving.

The administrator has been able to calculate with some certainty the value of the GMP at age 65 because fixed rate revaluation is being used, but the revaluation of the excess is dependent on RPI/CPI?

http://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/

http://www.barnett-waddingham.co.uk/comment-insight/blog/2012/07/24/revaluation-for-early-leavers/

Skinnydad

Thanks Xylophone let me read the literature they sent me again and I'll pop it back into the post. Yes I've plenty of reading to do and no one is getting emotional here, I see the request as pretty straightforward. I am just trying to work out what this small pot is worth, what it'll get me at retirement age and whether or not it is worth leaving it where it is. I understand there are numerous factors that impact income, in particular life expectancy(LE). I'm 57 at present want to retire at 60 and want to factor in 25 good years (if I'm lucky) anything over and above this will be catered for by additional means. Admittedly if it is £20 quid a week it's not to be sneezed at, but there is also no good having dribs and drabs scattered around. i'm just getting financies in place is all.

This forum has been great for advice (for want of a better word) but not all responses are conducive or positive but then different folks different strokes Thank you again :T

atush

All posts are meant to be truthful and informational. And to correct misunderstandings and misinformation.

Not to rubber stamp what people want to hear.

Income is income, It should not matter if it comes in dribs and drabs or once per year. What should matter is getting the best bang for your buck overall.

Skinnydad

Agreed atush, that’s what we all want is best bang for our buck, I think what my line of thinking was, if correct. Small pension gives me 1k a year, would transferring the 39K into my sip (if this is correct) generate a 3% return equalling approx. the same. But I’ve probably got my figures wrong and getting confused over returns etc. It’s not an issue leaving it I was just getting all the little pots into some manageable form and consolidate where necessary into 3 pots..

Thanks Xylophone I think you are correct in your response.

Jem16 the details I have are:

It is 60th’s, NRD: 2020 at aged 62
This is what my transfer form states:
Final pensionable salary 21k
Preserved pension at leaving before 6 April 1997: £572.79 pa
Preserved pension at leaving, earned after 5 April 1997: £361.76
Total preserved pension: £934.55 pa
Total GMP at date of leaving: (Included in preserved pension quoted above) £50.96 pa
Which included GMP after 6 April 1988 of: £50.96
GMP revalued to State pension age: £218.40
Total transfer value: £39,773.51

Thanks everyone and I really do appreciate the feedback..

jem16

Skinnydad wrote: »

Jem16 the details I have are:

It is 60th’s, NRD: 2020 at aged 62
This is what my transfer form states:
Final pensionable salary 21k
Preserved pension at leaving before 6 April 1997: £572.79 pa
Preserved pension at leaving, earned after 5 April 1997: £361.76
Total preserved pension: £934.55 pa
Total GMP at date of leaving: (Included in preserved pension quoted above) £50.96 pa
Which included GMP after 6 April 1988 of: £50.96
GMP revalued to State pension age: £218.40
Total transfer value: £39,773.51

Thanks everyone and I really do appreciate the feedback..

Ok from that the £934.55 does not appear to have been revalued even to today's figures and is likely to be much more when you take it in 2020.

You can see they have quoted a GMP revalued figure of £218.40 where the GMP included in preserved pension is £50.96.

You could ask them if they could give you a value for today as they should be able to calculate that from previous increases. 20 years worth if increases is going to make a difference and you still have another 5 years to go.

molerat

£934 20 years ago revalued to date is worth iro £16-1700. Worth asking them the question.

Skinnydad

Thanks Jem16 and molerat, I'll get this done.. I didn't realise that this would change again. As I said thanks again.. appreciate your time and effort

Skinnydad

Jem I called them, they need to get someone to work this out and they'll post this to me.. thank you

jem16

Skinnydad wrote: »

Jem I called them, they need to get someone to work this out and they'll post this to me.. thank you

Do let us know when you get it then.

xylophone

You can see they have quoted a GMP revalued figure of £218.40 where the GMP included in preserved pension is £50.96.

As I said in post 12, I suspect that this is because fixed rate revaluation is being used so that they are able to calculate this with some certainty.

I think that the OP said that he left in the nineties and it seems that this was after 1997 - it would seem that a rate of 6.25% is being used? If we assume revaluation for around 22 years this would be about right?

The excess over GMP would then be £877.09 to be revalued as here
http://www.barnett-waddingham.co.uk/comment-insight/blog/2012/07/24/revaluation-for-early-leavers/

Presumably the administrator does not give a "revaluation to date" figure of the excess in the annual statement but leaves this until NRD or when the benefits are drawn,