Help please option 32

jamesd

With a GMP they have to ensure that there's enough money to generate that minimum income level before they can allow taxable lump sum drawing. Seems as though the investments have done well enough to get above that threshold.

In some way that can be negative because one way a GMP can improve an annuity level is if the annuity purchase has to be subsidised to get to the minimum.

How much would it cost to buy that £560 a year? We can compare that to other options that might be a better deal. Could be anything from an annuity that takes your health and lifestyle into account through state pension deferral or drawdown.

What is your current, not projected, state pension amount? It's not as simple as 35 or more years gets the maximum.

xylophone

With regard to your state pension, what was your starting amount as at 6 4 16?

Trubb

Hi ,
Thankyou so much for all replies ..
I'm been honest now ...i really didn't realise what a option 32 was ..
Until this week ..with all your help ..
Also didn't realise about it been linked to state pension either ..
Quite enjoyed reading through all the ins n outs ...but think basically ..the penny has dropped �� ...
So right ..im 58 ..( not 59 ) as stated early ..
I'm a female...
Married .
State pesion forecast...is ..estimate 148.00 per week ..with 38 yrs NI credits
As from tax yr 2015 to 2016 .
With COPE amount £7.57 per week ..
So I guess will have the full pension
£155 per week in 2025 ..or what it may be at that date ...

My situation is at the moment...
I'm currently on Support Allowance contribution with a illness ..for 2yrs ..
benifit of £119.00 per week ..(then the benefit is assesed ) ..
Unfortunately it's a nasty illness.
So at the moment I will not be going back to work ....
The benefit will take me to over 60 yrs ...and is not means tested with savings ..
So do I cash the £560 ..in annuity ..
Or wait until I'm 60 to see what if any better options there is for me ...
Sorry if it's long ...hope it all makes sense
Regards

GunJack

Trubb wrote: »

State pesion forecast...is ..estimate 148.00 per week ..with 38 yrs NI credits
As from tax yr 2015 to 2016 .
With COPE amount £7.57 per week ..
So I guess will have the full pension
£155 per week in 2025 ..or what it may be at that date ...

My situation is at the moment...
I'm currently on Support Allowance contribution with a illness ..for 2yrs ..
benifit of £119.00 per week ..(then the benefit is assesed ) ..
Unfortunately it's a nasty illness.
So at the moment I will not be going back to work ....
The benefit will take me to over 60 yrs ...and is not means tested with savings ..
So do I cash the £560 ..in annuity ..
Or wait until I'm 60 to see what if any better options there is for me ...
Sorry if it's long ...hope it all makes sense
Regards

you may still need 3 yrs of NI to get to the £159 New SP maximum, does the benefit give you NI credits? If not, you'll be on the £148 (plus inflation) when you get to SP age..

edit - if it's ESA you're on, then it does give you automatic NI Class 1 credits, so depending on the dates, that may well suffice to get you to the max SP

Trubb

Yes it is ESA ..support ...and understand it does also pay NI contributions..
While I'm ill

Trubb

Hi James.
Just received another pension forecast up to April 2016 ..
Forecast is
£159.55
Estimate based on record is : £151.79 ..
My circumstances up to press is in the thread below ..hope this is of help ..
So my question is ..
When I'm 60 in 18months time..and I receive the option 32 full value ..
( I really do not think this figure is going to be over 10.000 ) ....as there is no way it can mature up to ten fold ..
Ie ..from 1000 in 1993 to now ..
Would it be better to take the pot ..of under 10.000 ..or yearly of annuity £ 560 at this present time
Regards

xylophone

Have you read the first link in post 7 above?

It would seem that you had an occupational pension that was transferred to a S32 policy?

When the transfer took place was there both a GMP and an excess over GMP that was transferred in?


The company must pay you at least your revalued GMP at age 60.

Have you received full details from Royal London?

Trubb

Yes it was a occupational pension scheme .. transfers to option 32 ..
Tomorrow I shall give you all relevant answers on the actual on the plan ..
No not as yet no mail from royal London ..
Once again thankyou for your time n patience 😁

xylophone

http://www.royallondongroup.co.uk/Documents/Coop/pdf/CIS_ISB_Individual_Option_32_Pension.pdf

Have you seen the above booklet? It contains information about GMP which may well be relevant to you.

Trubb

Transfer plan details..
Transfer value £1006.98 including members contribution of£771.63
Date of withdrawal 19.7.1985 ...
Term to retirement 25yrs n 9months ..
Retirement pension ..
Basic pension £191.18
illustration (i) £463.00 *
(ii) £159.00*
The pension is payable monthly in advance from normal retirement date and throughout your life.
Once in payment pesion will increase by 3.0% ...after each complete yr ...
Other benefits..
About ie death before n after retirement
GMP .PENSION ..at Withdrawl £117.52 rate of revaluation :5.0% pa
GMP revalued to state pension age £560 p.a
It was a BTR ..group pension scheme ..to a option 32 ..05 .04 93
Period of service ..03/12/79 to 19/07 /95
Also in policy schedule 5 is Excess benefit ..( not sure what this means )
Limits ..
(1) £532 .93
(2) 532.93
(3)1.199.10
(4) 1.199.10
(5) 355.29
(23.154.83 )

Hope this is a help to you ..understanding the option 32 policy.
Hope is doesn't give you a headache reading all this 😉
Thankyou so much