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Small Pension - GMP
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cloud_dog
Posts: 6,326 Forumite
Hi
Was going to revive my old post from 2006/2007 but 'tis closed, so....
This question specifically relates to the GMP pension with Aegon.
Scottish Equitable (Aegon)
GMP at NRA (60) £1228 (figure all post 88 GMP)
GMP Revaluation Rate: 7%
Plan Value (Reserved): £5100
Transfer Value: £8100
No mention of MVR being applied if transferred. Not that we are thinking of doing that specifically
This is obviously one of the older style pensions and Aegon take their pound of flesh each year, selling units to pay the AMC, and the fund has grown slightly (but not significantly) over the years.
The question I have is...
A Pension of £1228pa based on a (current) fund value of approx £5100/£8100 sounds great value (for us).
Firstly, what is the possibility that on obtaining 60 (NRA of plan) Aegon will confirm that there is insufficient funds in the plan (assuming ongoing charges/growth remain equal) to pay the GMP, and would confirm/offer a lower pension? (I know this goes against the concept for the GMP but...)
Secondly, whilst they are under no obligation to do so, is there any example of pension providers, with these types of GMP liabilities, offering to 'pay off' clients with a larger transfer value?
Was going to revive my old post from 2006/2007 but 'tis closed, so....
This question specifically relates to the GMP pension with Aegon.
Scottish Equitable (Aegon)
GMP at NRA (60) £1228 (figure all post 88 GMP)
GMP Revaluation Rate: 7%
Plan Value (Reserved): £5100
Transfer Value: £8100
No mention of MVR being applied if transferred. Not that we are thinking of doing that specifically
This is obviously one of the older style pensions and Aegon take their pound of flesh each year, selling units to pay the AMC, and the fund has grown slightly (but not significantly) over the years.
The question I have is...
A Pension of £1228pa based on a (current) fund value of approx £5100/£8100 sounds great value (for us).
Firstly, what is the possibility that on obtaining 60 (NRA of plan) Aegon will confirm that there is insufficient funds in the plan (assuming ongoing charges/growth remain equal) to pay the GMP, and would confirm/offer a lower pension? (I know this goes against the concept for the GMP but...)
Secondly, whilst they are under no obligation to do so, is there any example of pension providers, with these types of GMP liabilities, offering to 'pay off' clients with a larger transfer value?
Personal Responsibility - Sad but True 
Sometimes.... I am like a dog with a bone
Sometimes.... I am like a dog with a bone
0
Comments
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http://www.financialadvice.net/s32_buy_out_plan/zone/1288
https://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/
GMP age for your wife is 60.
You have stated that all GMP is post 88 - it must be index linked in payment by up to 3% CPI.
Has your wife obtained a new state pension statement?0 -
0
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Yes, done the SP quote, and she needs to work another 4 years to obtain full SP.http://www.financialadvice.net/s32_buy_out_plan/zone/1288
https://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/
GMP age for your wife is 60.
You have stated that all GMP is post 88 - it must be index linked in payment by up to 3% CPI.
Has your wife obtained a new state pension statement?Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0
This discussion has been closed.
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