What is it and what can I do with it ???

xylophone

http://www.pensionsandannuities.co.uk/GMPInsurers.htm

Might be worth a look for information but remember that indexation above 3% with the state pension comes to an end with the new state pension - have you obtained your NSP statement?

https://www.gov.uk/state-pension-statement

thebullsback

I have found the original Documentation from the then Norwich union.
Normal Retirement age 65 (5/2/2024)
Benefits on Retirement at normal age.
£693.72 a year .This includes Pension other than your guaranteed minimum Pension of £351.04 a year .Your guaranteed minimum Pension of £342.68 a year which was earned after 5April 1988.
Payable monthly from 1 March 2024 and for at least 5 year and continuing for the rest of your life.
Your Pension other than your GMP of £351.04 will increase by 5.00% compound and your GMP of £ 342.68 will increase by 3.00% compound.
There is also a guaranteed spouses Pension on my death after normal retirement of £346.92 per year.
So what does anyone think of this .Is it a good deal or could I do better somehow ?
Thank you for reading

dunstonh

So what does anyone think of this .Is it a good deal or could I do better somehow ?

It would need up to date figures but most Section 32 buy out bonds with GMP cannot be beaten unless you quality for enhanced annuity rates. Without analysis of the product and your objectives and circumstances it is difficult to say.

Linton

When was the original documentation? Normally I believe such pensions increase by inflation between then and your retirement date. But as your one appears to have guarantees in terms of % increase rather than inflation I dont know. It would be worth checking what the income benefit is now.

From the figures you have given so far the transfer value seems fair and it would be reasonable to choose either the income or a lump sum transfer based on whatever best meets your needs.

xylophone

I am finding it difficult to reconcile the figures in your first post with those given in your last and GMP increase rules.

PM to Aegis might clarify? https://forums.moneysavingexpert.com/discussion/5220615

thebullsback

Again many thanks for all your replies .xylophone as I am financially dim witted er what do you mean please?

xylophone

One would expect the GMP to increase as here

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

but this doesn't appear to be the case?

As I said above, you might PM Aegis who seems to have a lot of knowledge about this sort of policy.

ffacoffipawb

xylophone wrote: »

One would expect the GMP to increase as here

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

but this doesn't appear to be the case?

As I said above, you might PM Aegis who seems to have a lot of knowledge about this sort of policy.

Perhaps the GMP amount being quoted has already been revalued to state pension age (at the known revaluation rates - 8.5%, 7.5%, 7% or whatever)?


Or perhaps they always quote the GMP at date of leaving contracted out service.

thebullsback

As it stands now what is the best way of getting as much money out of this pot as I can now as in my opinion the sums payable in 9years time are trivial .

Pincher

thebullsback wrote: »

Payable monthly from 1 March 2024 and for at least 5 year and continuing for the rest of your life.
Your Pension other than your GMP of £351.04 will increase by 5.00% compound and your GMP of £ 342.68 will increase by 3.00% compound.
There is also a guaranteed spouses Pension on my death after normal retirement of £346.92 per year.

thebullsback wrote: »

As it stands now what is the best way of getting as much money out of this pot as I can now as in my opinion the sums payable in 9years time are trivial .

Planning on dying before 70, are you?