Pension coming up - advice please

Jack2015

Hi
I am coming up to my pension in August and just had my retirement options through the post.

Back in 2009 I requested what my options would be if I took my pension out early. The pension company kindly replied with my options. I didn't take up the offer at the time believing the deal would be better when i come up to retirement age.

Now i have the two difference options the only difference is the lump sum is higher but i thought the actual pension would be as well.

In 2009 if i took my pension early the figures were :
A cash sum of £7,200 with a minimum of £3,600 a year when i reached 65

Now in approaching 65:
A cash sum of £11,600 and the same pension of £3,600 a year
.
I just thought that will increases such as RPI etc the second figure would of been higher or even lower not the same.
Thanks for your replies and help

hyubh

Jack2015 wrote: »

I just thought that will increases such as RPI etc the second figure would of been higher or even lower not the same.

Anything in the documentation about having GMP with fixed rate revaluation?

Jack2015

Hi
Thanks for the reply. No Nothing in the literature about GMP with fixed rate revaluation. I all honestly I had to look it up because I was unsure what this is. The only thing it said was that the pension will increase with the RPI but by those figures nothing has in those 5 years.

xylophone

https://forums.moneysavingexpert.com/discussion/comment/68295996#Comment_68295996

You posted on this matter a few weeks back.

Thanks for clearing up about the lifetime allowance. This will be the only private pension I shall receive. I t was provided by a company I worked for back in the 80's.

I think I would be a Defined benefit pension as the offers on the table are :

A pension of £4500 a year, a cash sum of £11,600 and a pension of £3600 a year, a small sum and bigger yearly payment or to defer it. Just wondered if the £11,600 was 25% of my total pension pot as unsure what my pot would equate to.

It would seem that you can choose a pension of £4500 a year or a pension of £3600 and a lump sum of £11,600.

How much of your deferred pension is pre 88 GMP, how much is post 88 GMP and how much is the excess?

Are you intending to draw your state pension?

Have you had a detailed statement from DWP showing a Contracted Out Deduction from Additional State Pension?

How does your pension increase in payment?

If you continue to defer, will it increase in deferment, if so how?

Do you intend to continue working/and or defer your occupational/state pension?

Jack2015

Hi
Thanks for your help
Yes i posted about it a few weeks ago. Just been looking through the paperwork and it just seemed funny that the pension of £3600 a year was the same now as it was five years ago.

My frozen pension stopped in 1984 and I am intending to draw my state pension at 65. I have just received my pension forest from the DWP and it shows the state pension i shall receive as well as the S2P additional pension as I haven't opted out of this.

I don't intend on working after 65 so i will hopefully be taking the lump sum, £3600 a year, the state pension and the additional pension.

Thanks once again

xylophone

I have just received my pension forest from the DWP

Too many trees cut down to produce the pamphlet?:)

You have claimed the pension? Have you received a detailed letter like Post 18 here https://forums.moneysavingexpert.com/discussion/comment/60319901#Comment_60319901

You will notice the contracted out deduction from ASP - this is roughly equivalent to the revalued GMP from a scheme which contracted out of SERPS between 1978 and 1998.

It is probable that your pension scheme to 1984 was contracted out but may not have been.

Your statement from your OCP Administrator says nothing about whether any part of the pension is GMP?

Do you have a scheme booklet for the old scheme?

mgdavid

Cioca_Edward wrote: »

Hey!

There were changes done to the pension system made in 2014, so it's a bit different now. You can take a look at this guide that's informing you about them and how to make the right choices: freeinvestmentguides.com /guides-and-reports/67-81-1/pensions/osborne-rule/guide-to-pension-freedom (just add www at the beginning, i can't post links yet)

4 posts all pushing some free book which is totally unattributed on the web page; reported as spam.

Jack2015

Hi
I have had a reply from my pension regarding the questions i asked here. I have also found some literature.

How much of your deferred pension is pre 88 GMP, how much is post 88 GMP and how much is the excess?

All of my pension is before 88. I was in it for 6 years from 1978 to 1984.
Today the pension office said my GMP on leaving was £289.64 and receives an increase of 8.5% a year. Am i right in thinking that would be £764.20 now. (289.64 / 100 x 8.5% = 24.61 x 31 years.)

Does that also mean that the excess (£3632.20) or the real pension is the remainder.

Thank-you

xylophone

Have you claimed your state pension?

Have you yet received the letter to which I refer in my post above showing your contracted out deduction?

A rough calculation for the GMP would be 8.5% compound for 30/31 years.

I make it approx £3632.

When you left, were you told that all your deferred pension was GMP?

See post 33 below- have you had a letter along these lines from the scheme administrator?

https://forums.moneysavingexpert.com/discussion/4532605

RichandJ

Jack2015 wrote: »

Hi
I have had a reply from my pension regarding the questions i asked here. I have also found some literature.



All of my pension is before 88. I was in it for 6 years from 1978 to 1984.
Today the pension office said my GMP on leaving was £289.64 and receives an increase of 8.5% a year. Am i right in thinking that would be £764.20 now. (289.64 / 100 x 8.5% = 24.61 x 31 years.)

Does that also mean that the excess (£3632.20) or the real pension is the remainder.

Thank-you

As you left before 1/1/86 your excess over GMP at leaving probably doesn't/hasn't increased in deferment. It was not a requirement back then. So the only increase will have been your pre 88 GMP.

xylophone

As you left before 1/1/86 your excess over GMP at leaving probably doesn't/hasn't increased in deferment. It was not a requirement back then. So the only increase will have been your pre 88 GMP.

Although depending on the particular scheme it might.

I know somebody who was in a DB Scheme 1974-82 who has GMP and excess - GMP increased by Full Rate rather than Fixed Rate, balance by scheme rules.