What to do with money in a closed FS pension

pompeii

Sorry if this has been covered before, I found out last year that I have £10.000 in a closed final salary scheme, I used to work for a major charity then they told us that they were closing the scheme, no further payment could be made into it. So I joined the new scheme, I left the charity 2 years ago at age 60 and have an annual pension income of about £4.000 give or take from an assortment of LGPS, private and the charity pension scheme. I have no other regular income. Not eligible for state pension for another 2 years.
So my question is should I make plans for this £10.000 pension money now, or leave it till after April and try to take it then under the new pension proposals from our glorious leaders.

kidmugsy

I'd start by finding out how big a pension they will pay you, and whether it comes with a lump sum. I'd also enquire about the penalty ("actuarial reduction") for starting it early. If you want a transfer out to a personal pension, you'd need to know the terms on which they'd do it. I take it that the £10k is the Transfer Value?

atush

Well what is the age at which you can take the pension under the rules? Can you take the pension early/reduced?

Is 10K the CETV amount or what? What is the projected income per annum?

mgdavid

pompeii wrote: »

......... have an annual pension income of about £4.000 give or take from an assortment of LGPS, private and the charity pension scheme. .......

which one, you said you were a member of two different schemes whilst at the charity?

pompeii

Thank you both for your replies, i did ask last year and they sent me a number of options. The £10.000 (exact amount £9.624.22 as of 23,05,2014) is the transfer value, I am able to take the pension now as i am over 60. There are 3 options given
1, to transfer to a private pension £532.03pa with option to take £2.406.06 cash lump sum.
2, scheme pension £348.98pa £1.046.94 cash LS.
3, scheme pension £313.67pa £1.730.83 cash LS.
Scheme pension options include spouse benefit on death of £174 pa.
The final salary scheme was closed, i was automatically enroled in the new scheme i was not contributing to any of the other pensions.

kidmugsy

pompeii wrote: »

There are 3 options given
1, to transfer to a private pension £532.03pa with option to take £2.406.06 cash lump sum..

Sorry, I don't understand that. Can you quote the exact words?

xylophone

Can you simply transfer out into a SIPP say with Hargreaves Lansdown and draw down as you wish?

Or take it as a small pot?

https://www.gov.uk/personal-pensions-your-rights/how-your-pension-is-paid

pompeii

kidmugsy wrote: »

Sorry, I don't understand that. Can you quote the exact words?

Transfer value to a personal pension. £532.03pa
Illustration of the higher value pension that might be available to you based upon that transfer value are set out below, so that you can compare these with the annual pension payable from the scheme, the example we have given from a personal pension does not increase in payment and no dependent's pension is payable.
Please note that if you elect to take this option you may be able to take up to £2.406.06 as a cash lump sum.
These benefits. would use up Lifetime Allowance. of: 0.77% .

Hope this helps. Ta

atush

sorry, that makes no sense Transfer to a PP would be the CETV or 'pot' value- perhaps the 10K.

532 PA in a PP sounds like an annuity.

pompeii

xylophone wrote: »

Can you simply transfer out into a SIPP say with Hargreaves Lansdown and draw down as you wish?

Or take it as a small pot?

https://www.gov.uk/personal-pensions-your-rights/how-your-pension-is-paid

Not sure what i can do with it as it was a final salary scheme it was with the NSPCC so was similar to LGPS.

xylophone

Read the link - do you want to take it as a small pot?

Can you take it as a small pot from the scheme?

If not, and you want to access it as you wish, transfer out?

See the Pension Wise link link within the link.


http://www.hl.co.uk/pensions/retirement-options