Private Pension advice.please?

Cacran

I worked for a company years ago and was part of a non contributary pension scheme. I will be 60 in March and this pension is due to be paid.
I have just received the paperwork to choose my option.
It is giving me a headache. I panic when I see all the instructions.I have the option of choosing the pension, or lump sum and pension.
I have also to fill in a form, which I am finding very daunting.
Is there anyone out there who could answer me a few questions?

atush

If you want real help you need ti give specifics. You could name the companyand otheres could be familiar with your options.

Or you could say how much annual pension you have to give up for how much lump sum? this gives you the 'commutation' figure that tells you if it is a good , bad, terrible idea to commute the annual pension for a Lump sum.

I can say, that assuming over a life time you have some sort of savings, and you are in general good health (and maybe have a spouse) that taking the full annual pension w/o Lump sum (or if you need some cash taking a smaller lumps sum) tends to be better value in the long run.

xylophone

Can you give details of the options offered?

Are there details of the scheme on the internet to which we could refer?

When did you work for the company?

Cacran

I have the option of £1720.53 per year or £8155.11 lump sum with pension of £1223.27.
I have a part time job at present for which I am not taxed on but I do have savings.

Cacran

Last year I earned £3521.23 last year from my job which is about £67.70 a week.

Cacran

I worked for Refuge Assurance Co. from March 1971 to May 1984.
My pensionable service began march 1975 when I was 20.
The company was taken over and the pension was taken over by Royal London Group Pension Scheme.

RichandJ

Cacran wrote: »

I have the option of £1720.53 per year or £8155.11 lump sum with pension of £1223.27.
I have a part time job at present for which I am not taxed on but I do have savings.

Your figures give a commutation rate of approx 15:1, in other words for every pound of (potentially inflation linked) income given up you'll get £15 lump sum. It's not the worst rate I've ever seen but it's nowhere near the best either.

If you think you're going to die in less than 15 years take the cash. If not, well you work it out....

xylophone

I am assuming that the scheme was contracted out.


If so, when you left, were you given a statement of your pre 88 GMP and the excess?

How does the GMP revalue in deferment?

Are you male?

What information is given about increases to your pension in payment?

Cacran

xylophone wrote: »

I am assuming that the scheme was contracted out.


If so, when you left, were you given a statement of your pre 88 GMP and the excess?

How does the GMP revalue in deferment?

Are you male?

What information is given about increases to your pension in payment?

Sorry but I cannot answer these questions as I do not understand them. I am Female (I can answer that one!) not blonde but maybe, should be!!!

atush

Do you have any state,ents from this pension? If you dont, I would contact them and get one, They may not have your address?

It should have the info mentioned in post 8 (ie GMP means guaranteed minimum pension)

xylophone

Do you have a scheme booklet?

Does the letter you have received show a Guaranteed Minimum Pension revalued to age 60?

Is there information about any cost of living increases to this pension once it comes into payment?

You can ask for a new state pension statement as you are over 55.

https://www.gov.uk/government/news/millions-more-offered-free-pension-statement

Do you intend to continue to work until state pension age?