Spend Nowt, Buy Nowt, Owe Nowt

DT2001

With your old DB pension were you contracted out of SERPS as it may have an element of GMP. Depending on the scheme this may have grown considerably? Worth finding out.

apple_muncher

My sch has its dress up day tomorrow. After going as 'James Bond' a couple of times, (just a white shirt, bow tie, black trousers and jacket), I wanted to go in jeans and be more than a muggle or geek girl. So I am going as Chris Graham from Five minutes of Amazing and his journey through dementia. Hoping for 5 mins at the start of my classes to explain dementia to the pupils, as they'll all inevitably come across it at some point.


He did a huuuge cycle ride in 2015, but I sure as heck ain't going in cycling lycra!!

XSpender

DT2001 wrote: »

With your old DB pension were you contracted out of SERPS as it may have an element of GMP. Depending on the scheme this may have grown considerably? Worth finding out.

The statement shows two parts one of which is GMP. The Av1va pension that holds my SERPs bit seems to have grown quite a bit.

Spent today on bits in H0bbycraft for DS book day outfit. Would almost have been the same to buy him a ready made one, at least they would have known who he was, but he has such a creative little brain that he has enjoyed making it.

Also spent on milk, apples and beer. A quid and a few pennies left in the grocery purse but next £75 gets added on Friday.

Sat with a hot watter bottle on my knee this afternoon to avoid putting the heating on and heating the whole house. Feels a bit pointless sometimes when DH has put the fire on as well as the heating like tonight:(

I've signed DS up to a martial arts class starting next week, first couple of lessons are free.

DT2001

XSpender wrote: »

The statement shows two parts one of which is GMP. The Av1va pension that holds my SERPs bit seems to have grown quite a bit.

I am a little confused. GMP is complex and my limited knowledge just makes me ask more questions of the experts so I understand.
Is the Aviva pension definitely part of your DB pot? My old DB pension included a GMP element (£6k when I left of which £1340 was GMP). The GMP is recalculated at 65 (NPA for males in my scheme) - it increases at 7% p.a. But is offset against increases in pension since drawdown.
Ask the DB administrator
1. Value of pension when you left
2. How much of this was GMP
3. Rate of increase (as various options)
4. When GMP increase is payable - can vary between schemes
5. Once in payment will GMP element of pension increase (presume not as nSP now not linked to old SERP’s part)

You’ll then know what it is really worth and if still more info required post on pension thread as some very knowledgeable posters there.

enthusiasticsaver

I have an old GMP which was a pittance when I left my old employer more than 30 years ago but the pension has been revalued by 8.5% per year and is worth considerably more now. Many of them, mine included pay out to women at 60 which is earlier than most pensions today unless you take a reduction in benefits. Some older GMPs though don't include indexation once they are in payment. Also transferring them is very expensive and not usually encouraged. I have been quoted around £5k for IFA advice and any DB pension worth more than £30k as a Cash transfer value has to have an IFA advise before the pension company agrees to transfer. Good questions above to ask.

XSpender

I confuse myself about pensions DT2001

My DB pension was about £1000 pa, made up of an element of GMP, when I left in 94 and now says it will pay about £3000 pa at 60. I will keep a note of the questions you have suggested to ask them.

When I was 'persuaded' to opt out of serps a private pension was opened for me which I moved to Aviva about 12 years ago. That pension is now worth £5k ish with a projected value of £13k.

At present I don't intend to do anything with the DB pension and will do more research before I do anything with the others.

Suffolk_lass

Just check your Aviva one to see if there is a guaranteed minimum pension. It seems unlikely but some still did, 12 years ago. The projected value is based on an income per annum, based on you continuing to contribute to it until the scheme's normal pension age. I know you refer to it as a private pension but if your employer contributes, it is their occupational one, administered by Aviva (that is not bad). Given that it is setting out the current accrued benefits (the £5k p.a) it does sound like a DB pension but do check the statement. If it tells you a total pot value and the £5k is a projected income with your current level of investment, it may still be a DC (still with your employer contributing).

As you are looking for a new job you do need to look at your options if you change jobs (and if you go contracting or set up your own company, this is all aspects) - if you change employer they will offer an employee pension as they have to. I suggest you could also look at the Pensions forum on here and look out for Aviva pensions subject threads and have a quiet read. There are some really knowledgable people in that part of the forum (although some are a bit !!!!!! and not very friendly) - most are helpful (not always right)

The SERPS issue is mostly irrelevant except in how it impacts your SP forecast. For me, (aged 60) I cannot make up the difference fully between the Basic State Pension and the New State Pension - this won't be an issue for you. SERPS opt out was removed in 2016 and you have the years left to work that will nullify it. It just means you paid less in those years and so did your employer - so you had a benefit from it. 99% of us opted out when we had the chance.

brizzlegirl

Just catching up...I use TCB and TrainGenius not Trainline for booking tickets. It adds up and they are super fast payers.

Have a great weekend x

XSpender

brizzlegirl wrote: »

Just catching up...I use TCB and TrainGenius not Trainline for booking tickets. It adds up and they are super fast payers.

Have a great weekend x

Thanks for this tip. I spend over £115/month on train tickets for work so a little cash back would be nice. I just need to find someway of getting cashback/incentives on Premier 1nn now as I book 1 or 2 of these a month.

XSpender

Where did the weekend go? :eek:

3 hours in the hairdressers on Saturday morning having my colour and cut done. Even with £35 off with loyalty points it still was eye watering. I attempted to replace my foundation but couldn't get served at the counter in either of the department stores as ladies were having their faces done and I was ignored. I would have needed some of their time to choose the right colour as they have changed them since my last purchase so not a problem. Will go to the other shopping centre on my way back form Scotland tomorrow when it should be quiet.

Stocked up on Wilc0 water filters and rinse aid and DH dropped me off and picked me up so saved on parking.

DH and DS had given the living and dining room a good clean when I was out including polishing the leather sofa. A disgusting amount of mouse poo was found under the sofa _pale_ so DH cleaned the carpet and checked the mice hadn't gotten into the sofa.

A supermarket visit has blown my budget and left us with £103.51 for the rest of the month! Why do I ever let DH near a shop???? £4 on a tin of air fresher we didn't need amongst other things.

Sunday DS played a match in the torrential rain and after lunch and a shower for the boy who was cold, wet and very muddy we took DMIL to the garden centre as she had requested some plants for her birthday. We followed this with tea and cake in the caf!. They do a good GF selection. DMIL gift was under budget and we each paid for our own refreshments as usual.

We ran out of time to pop to our friends but will see her this Sunday.

We are doing OK budget wise this month so far. We should be OK with the food budget as DH is cutting down on beer and we are going to have another go at sorting out our diet by cutting out snacks and sugary stuff and eating proper meals. We have a long distance walk booked for June which we need to prepare for and I feel I would struggle with it at the moment especially as my left knee doesn't feel right. I have a 12 miler in a couple of weeks which will be the test for it.

I have spent too much time looking at house restoration projects on insta this weekend. I think I finally have the idea in my head of what I want our living room to look like. Ideally we would like the stone fireplace removing, a wood burner and a new suite but that is not affordable at the moment. I would also like 2 cupboards and some shelves building in the alcoves, a new door, shutters or blinds and some kind of sliding/bifold doors putting in between the living room and dining rooms. Not much then!

Even removing the existing wallpaper, which has sound proofing behind the wall adjoining next door, replacing it, lining the walls and painting them will be a big task. Oh yes and the carpet will need replacing too.

I have been catching up with brizzle's diary and they are going hard on their debt, paying a chunk off and living on the rest and I think this could be an option for us. We were left short by the tax c0ck up at work but I still decided to pay DPIL back the £1200 this month I had decided on and we have managed OK so far. The first couple of months of attempting this will be to get our summer holiday paid for so it doesn't add to the debt. This should have been covered by my bonus but the roof repairs ate that. We will then throw it at the debt. We do still need to rebuild our EF that we had to use for the roof repairs but I am aiming for £500 as a first step and back to £1000 by the end of the year.

I am going to have a cuppa and see how much I could chop off next month's budget to go towards the holiday.:)