CETV How much would temp you?.

kidmugsy

neilvw wrote: »

"increased annually by 5% per year (subject to certain limits)" - curious phrase.

It certainly is. I've always distrusted phrases using "certain" as a way to disguise something. Why not "subject to the limits described in clauses 14.1 & 14.2", or the like.

ajbell

Its been deferred since 2001 and has indeed increased by 5% each year and I know pensioners are getting 5% rises every year.
Its a straight forward deal. It does seem generous to pensioners.

neilvw

Are you female?

ajbell

no. male 50 and just preparing for the possibility of retirement at 55 but more likely 60. scheme normal retirement age is 60.

neilvw

GMP age for men is 65, but I take it the documents make it clear you can have all parts of your pension at 60?

ajbell

Yes, no issues with the GMP.

neilvw

Ask for a projection to age 55 (if possible) as well as a transfer value and post it here. I'd be interested to see the results.

ajbell

What do you mean "Ask for a projection to age 55"

neilvw

The annuity rate today for a 60-year-old in good health wanting a 50% widow's pension, 5% increases and a five-year guaranteed period would be approx 2.1%. So an annuity of £10,600 would cost £505k.

You would need to invest £341k now, at a growth rate of 4% after charges, to reach the £505k. That's my ballpark guess at the transfer value, £341k.

neilvw

Ask if the scheme allows benefits to be taken at age 55, and if so what the pension would likely be at that age. :-)