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

thebullsback

From original document 7 March 1999 -
Your guaranteed pension £693.72 This includes pension other than GMP of £351.04 a year .Your GMP £342.68 a year which was earned after 5 April 1988 .Your pension will be payable from 1 March 2024 for at least 5 years and continue for life .
Will the pension increase . ..When you are 65 your pension other that GMP of £351.04 will increase each year by 5.00% compound .Your GMP of £342.68 will increase by 3.00% .
Any ideas ?

agarnett

Let's try another way:

• How many years were you in the scheme?
• What was your final salary in 1999 when you left it?

agarnett

OK, so I was getting close to the mark perhaps in the Edit at the bottom half of my post before last? - By the way, I just corrected that post because I was multiplying by 40 not 60 in one part of it ! - Sorry about that!

I don't think your pension if you leave it will be £700 pa at age 65. I think it will indeed be significantly higher (possibly £2,000 pa).

Do you have anything on the scheme itself which tells you if the pension accrual rate with years of service was on a 60ths basis ?

3 years service x 1/60 x £11,000 pa = £550 pa. Maybe you were actually in it 3½ years ?

3½ x 1/60 x £11,000 pa = £641 pa

or perhaps it was 3 years 9 months?

3y9mths x 1/60 x £11,000 = £687 pa

or maybe your final salary over the final 12 months was a bit higher?

3½ x 1/60 x £11,800 pa = £685 pa


These are again rough trial and error, but I am beginning to feel quite sure your expected pension at age 65 is not £692 pa.

£692 is what it would have started at if you were 65 the day you left. I think it'll have been revalued ("inflation-protected") substantially since then.

Your last couple of posts have slightly varied the revaluation rates. The ones you have given relate to revaluation after the pension starts.

What we don't seem to have are the revaluation rates between date of leaving the scheme and age 65, and that's what you can ask Aviva about in the morning

thebullsback

So when I contact Aviva in the morning my list of questions are ??
And thank you very much for your time and effort on my behalf .Thank you .

agarnett

Same main question as mentioned before unless a few of the regular experts can think of some better ones:

I have an original 1999 document confirming the main retirement benefit I can expect at age 65 is a pension of £693.72 a year revalued at 3% GMP / 5% other. I have been advised that in the 25 years from 1999 to the original scheme retirement date in 2024, the effect of revaluation of £693.72 at those particular fixed rates would yield a new total pension at age 65 of around £2,000 per year. If the revaluation does not work that way please confirm how it does actually work. Can you therefore confirm the revalued pension benefits I can expect at age 65 if I allow the contract to run its original intended course?

thebullsback

I shall email that passage tonight to Aviva so there's no question about getting it wrong . Your a star among other stars on here agarnett

agarnett

thebullsback wrote: »

I shall email that passage tonight to Aviva so there's no question about getting it wrong . Your a star among other stars on here agarnett

Kind of you to say so, but more of a rough diamond at best to many stars on here I think

thebullsback

Have emailed Aviva twice asking for answers to the above question .Still no reply.

kangoora

Yes, they seem to be quite sneaky about these valuations. I asked for a valuation of benefits from Mercer - and they sent me a CETV plus all the paperwork to transfer it out. Specifically NOT what I had asked for.

On top of this, they only quoted the pension payments based upon the original FS valuation back in 1991 and didn't include any estimates of growth using GMP figures.

On the face of it, without looking into it further, it looked great value to transfer out and lose a (sic) pension of only £470 year and get £44k in return. Until I calculated it out and (estimated) it would be worth circa £3.5k/year on my retirement and about a 12.5 year payback.

How many people have been mugged by these pension companies 'buy-out' values who don't know enough to calculate GMP increases to arrive at a realistic value of what it would be worth on attaining their retirement age?

[Deleted User]

thebullsback wrote: »

Have emailed Aviva twice asking for answers to the above question .Still no reply.

Hi thebullsback,

I'm really sorry to see no one has been in touch. I'd like to help and try to get you some answers. Could you send me copies of the emails you have sent so far to social@aviva.co.uk and for security purposes please include your

Full name
Date of birth
Post code
Policy number

It would also really help if you could include your MSE username so we can link your email to this post.

I look forward to hearing from you so we can start to get things sorted.

Kind regards

Dave
Aviva Social Media Team