Transfer value query

sanatogen

Hi there,

I have been diagnosed with what is considered a terminal illness, so I started looking at the two pensions I have and considered how best to cash these in. One is a deferred pension taken out after 2001, and the other is a pension from 1993 which I stopped contributing to after a number of years.

I'm not sure what to make of the transfer values as to whether these would constitute the amount I would receive if I were to go ahead? "Guaranteed minimum value" is also mentioned in one of the pensions of which I'm not sure what that means either.

It's not a great deal. Transfer value amounts to £50-60k.

Best Regards
Rod

kidmugsy

Please look at the paperwork and tell us the kind of pension each is: for example Defined Benefit (e.g. final salary) or Defined Contribution (money purchase).

How long is your expected lifespan?

AlanP_2

Rod, sorry to hear your news.

They are both Defined Benefit / Final Salary schemes by the sound of it. I am not an expert but from what I understand most DB schemes have a terminal illness payout procedure of some kind.

Do you have any of the scheme booklets or have you looked at the organisation websites or tried googling for the scheme detail on the web?

Usually the final decision on paying out some kind of lump sum as opposed to a monthly pension is down to the scheme trustees. Contacting the scheme administrators would be the first step.

sanatogen

Thank you for your replies.

The larger one is a final salary scheme. I will check what the other one is.

Doc refused to give a date on lifespan. I expect it would be less than 12 months if asked to put it in writing.

molerat

Getting that prognosis is critical in the decision making process for both yourself and the pension providers.