Calculating Pension Pot

BookerTee

I have a pension from 23 years with the company I used to work for. I left about 7-8 years ago but I have no information about the pension. I will be writing to the company but at the moment dont even have a contact name and expect it will take a long while to get any details out of them.

I am looking to move it into a SSAS and I am trying to get some idea how much of I would have to transfer. I was hoping someone here would have an idea what metric to use from the expected yearly benefits. As I understand the yearly benefits should be fairly easy to estimate by multiplying years service by 1/60ths by last salary (plus inflation?) to get a pretty good estimate.

Any suggestions?

PensionTech

What scheme is it? And why on earth would you want to move it into a SSAS?

BookerTee

Scheme? No idea.

As far as I can see its completely stagnant where it is. I wanted access to the money in order to make a return on it.

xylophone

As far as I can see its completely stagnant where it is.

"As far as you can see" can't be very far if you have no information?

Don't you even have a scheme booklet/statement of benefits on leaving?

Do you know whether your scheme was Defined Benefits/Final Salary or Defined Contribution/Money Purchase etc?

Have you looked up your old company on the internet? It is often the case that you can pick up pension details/contacts on the web.

It is very unlikely that your pension is "stagnant" - if a DB pension it will be revaluing in deferment and if DC/MP should show the return or otherwise on investment.

If the above fails see http://www.pensionsadvisoryservice.org.uk/pension-problems/making-a-complaint/common-concerns/lost-pensions

Ganga

Scheme? No idea.

As far as I can see its completely stagnant where it is. I wanted access to the money in order to make a return on it.

But you do not know if it is making a better return at the moment.
get the information from your previous employer and then look at your options

BookerTee

On the day I left the company I went to see the pension 'administrator' he insisted that all the necessary details would be sent to me in good time. Of course nothing what so ever was sent on to me (typical of how the company operated).

Approximately every two years they send me a 'pension statement' which tells me about the trustees and the spread of the pension investments. Unfortunately it tells me absolutely nothing about MY pension entitlement and so goes straight in the bin.

It was a final salary pension when I left, as I understand it will only ever pay out 23/60ths of salary (plus inflation?). Therefore it doesnt seem to matter how much the pension fund grows the pay out is the same? Hence my comment that it was stagnant (for me).

I have looked it up on the internet which says it was administered by Mercer but that was years ago, I dont know if its changed. Tried to contact them by phone...complete joke the 'customer service' line is permanently switched to 'HOLD'. Tried leaving a couple of msgs to get back to me...nothing. Not really sure if they would have any idea what my entitlement would be anyway.

I was originally going to ask for a transfer value but was advised that might not be a good idea unless I was ready to transfer. It was suggested that I would be likely charged the second time when wanting to actually move the money. So was going to ask for statement of benefits and then estimate back to size of transferable pot.

However thinking about it the benefits wouldnt seem too difficult to estimate reasonably accurately. I am assuming there would be an inflation element to the calc. Hence the requirement for help with back calculating the pot.

bigadaj

You don't appear to know a lot about pensions, so moving into a ssas seems like a bold and not very wise move.

The process would be to find out some more facts about the pension, if you state the company then people here will probably be able to find details after a brief Google.

You can then pay an ifa to review your arrangements, the likely outcome of which will be to sit tight with your current arrangements. With this advice you may then be able to transfer this to your preferred alternative which will mean that you may well be worse off in the long term, but then hopefully won't be able to blame anyone else for the poor decisions you will have made.

sandsy

If you've got a final salary pension, you've got one of the most valuable pensions available.

Transferring it is generally considered to be a bad idea as it will generally leave a person worse off. You'll probably need to pay for proper financial advice in order to transfer it (a statutory requirement).

bigfreddiel

BookerTee wrote: »

On the day I left the company I went to see the pension 'administrator' he insisted that all the necessary details would be sent to me in good time. Of course nothing what so ever was sent on to me (typical of how the company operated).

Approximately every two years they send me a 'pension statement' which tells me about the trustees and the spread of the pension investments. Unfortunately it tells me absolutely nothing about MY pension entitlement and so goes straight in the bin.

It was a final salary pension when I left, as I understand it will only ever pay out 23/60ths of salary (plus inflation?). Therefore it doesnt seem to matter how much the pension fund grows the pay out is the same? Hence my comment that it was stagnant (for me).

I have looked it up on the internet which says it was administered by Mercer but that was years ago, I dont know if its changed. Tried to contact them by phone...complete joke the 'customer service' line is permanently switched to 'HOLD'. Tried leaving a couple of msgs to get back to me...nothing. Not really sure if they would have any idea what my entitlement would be anyway.

I was originally going to ask for a transfer value but was advised that might not be a good idea unless I was ready to transfer. It was suggested that I would be likely charged the second time when wanting to actually move the money. So was going to ask for statement of benefits and then estimate back to size of transferable pot.

However thinking about it the benefits wouldnt seem too difficult to estimate reasonably accurately. I am assuming there would be an inflation element to the calc. Hence the requirement for help with back calculating the pot.

I had a 60th's fs pension sadly only 3 years.

Thirty years later I contacted the admins. Too my surprise it was worth £3,500 per annum, index linked. Not bad for paying in only £1200!

In the last few years before I took the pension it as building at 9% per annum.

You have 23/60ths fs pension. What was your salary when you left.

Let's say it was £20k. So you should be looking forward to at least £10k per annum pension.

You must contact the pension admins and find out what it's worth.

I doubt you could do better, especially as you seem to be totally ignorant about the state of your pension, and didn't bother to follow up on the promise of details when they failed to turn up even tho' they were promised shortly after you left the company.

Take it from me, you won't be able to do better if you cash it in and try to invest it yourself.

Let us all know how you get on.

Cheers fj

xylophone

You have a deferred final salary pension. It is very likely that you were contracted out so would have a GMP.

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

Transferring out of a deferred Final Salary pension valued at more than £30,000 would require the advice of an IFA with the necessary permission/qualification - you might find it difficult to find an IFA to accept the work and if you did, his recommendation might be against transfer. If this were the case, you might find it very difficult to transfer out.

Regarding Mercer,you might try an enquiry in writing giving the personal details required.

Send your letter "signed for".

http://www.uk.mercer.com/we-want-to-hear-from-you/uk-employee-pension-scheme-enquiries.html

If the above fails see http://www.pensionsadvisoryservice.org.uk/pension-problems/making-a-complaint/common-concerns/lost-pensions

It is rather alarming to see that Mercer's site describes deferred pensions as "frozen".....:eek:

If you will be eligible for new state pension, have you obtained a statement?

https://www.gov.uk/government/publications/application-for-a-state-pension-statement

BookerTee

bigadaj wrote: »

You don't appear to know a lot about pensions

Youre right! which is why I came here, I wasnt looking for personal financial advice, only help on how pensions work generally.

bigadaj wrote: »

The process would be to find out some more facts about the pension, if you state the company then people here will probably be able to find details after a brief Google.

What kind of facts would I need to be asking for? I am sure I wont get them if I dont ask for them. I have Googled it, there is virtually nothing.

bigadaj wrote: »

You can then pay an ifa to review your arrangements, the likely outcome of which will be to sit tight with your current arrangements.

My basic understanding of the current arrangement seems to suggest I will get a pittance per year...?

sandsy wrote: »

If you've got a final salary pension, you've got one of the most valuable pensions available.

That may depend on your definition of 'valuable'...I dont see it, why is it valuable?

sandsy wrote: »

Transferring it is generally considered to be a bad idea as it will generally leave a person worse off. You'll probably need to pay for proper financial advice in order to transfer it (a statutory requirement).

I am glad you can assess it as generally a bad idea, that suggests you know why?

I dont feel I need a IFA for the basic level of understanding that I need at this stage.