Help I feel swindled

sue139uk

Marine_life, Two years ago the pensions administrator changed to a different company. Then I contacted them and got a statement, which I signed to take the pension but did not return as they said I would get less than leaving it. At the same time, I had a different work pension which I did take as I needed the money for daily living expenses.

ProDave

Have you yet found out what the scheme normal retirement age was?

The "lump sum" you received was probably redundancy pay and nothing to do with your pension.

I doubt you will have "lost out" by waiting. If you had drawn it early, it would have been at a lower rate for the rest of your life. The scheme will have rules for the reduction of benefit for early payment. In broad terms they are trying to limit the total benefit paid over your lifetime to the same amount, so drawing it early you receive it for longer but at a lower rate.

If you have managed this far on your savings, you will now have a higher pension than your would have had if you had drawn it sooner.

sue139uk

Deneb, Mrs May was talking about the increase in date for women to get the State pension; I was in a WASPI group. She said in general that women can access work pensions from 55. I rang the administrators to see if it applied to my works pension. I recall them leaving me hanging on the phone whilst they checked about it.

Dox

sue139uk wrote: »

Marine_life, Two years ago the pensions administrator changed to a different company. Then I contacted them and got a statement, which I signed to take the pension but did not return as they said I would get less than leaving it.

I think you've just shot any potential claim in the foot. You knew you could take your pension early but chose not to do so because (as the administrators correctly pointed out) you would have got less by taking it before the scheme's Normal Retirement Age.

You would have got very substantially less if you'd taken it at 55 - assuming the scheme's retirement age is 63(?), taking the pension 8 years early would probably have meant a reduction in the starting level of at least 5% a year i.e. a permanent reduction of at least 40%.

sue139uk

Pro Dave: I will try to find the scheme normal retirement age, but I see no paperwork with it on.

Yes, the "lump sum" I received was indeed redundancy pay and nothing to do with your pension.

I have "lost out" massively. I have found out this year that fellow workers who drew their pension early and invested the lump sum have seen it increase by more than inflation.

Also they have had the benefit of having money in their pocket to spend.

This pension is a DB scheme for life, so their monthly income has also been increasing.

I now know this goes against my natural instinct to avoid instant gratification.

In fact I suspect that life expectancy dates have increased over time, so by taking it early you actually get more. The administrators say the actuary works it out based on expected date of death, but they won't tell me the actual date it is based upon.

I have managed this far on my savings, but now I have no savings.

xylophone

Yes I have often checked my state pension statement,

To be clear, this is a new State Pension statement?

What exactly does it say?

Are you absolutely certain that when you accepted redundancy and hence left the scheme that you were not given a statement of deferred benefits?

What was normal scheme pension age?

Is there any information about your scheme on line?

xylophone

You say that you do not know what normal scheme pension age was which seems astonishing.

You chose redundancy but if you hadn't, at what age did you expect to be able to retire on full pension?

sue139uk

Dox: Two years ago I found out I could take my pension early but chose not to do so.

You say "because (as the administrators correctly pointed out) you would have got less by taking it before the scheme's Normal Retirement Age."

I had been living with that, on a very tight budget, because I understood that was the best thing to do. It was the best thing for them, but the very worst for me.


In fact the administrators INCORRECTLY pointed out that it was to my advantage to defer. I would have got lots more had I taken it as soon as possible (as I now know my co-workers had done by taking it at 55).

I only have recent lump sums to compare, and they have changed only with inflation and I presume the costs of the scheme have been deduced too.

The monthly income would have more than compensated for any change in the pension pot.

I thought like you. I was so very wrong.

xylophone

What is the answer to the question posed in post 18?

sue139uk

xylophone: I expected to be able to retire on full pension at State Pension age, which I knew was increasing.

I have a State Pension statement for this year, and will look it out.

I am absolutely certain that when I accepted redundancy and hence left the scheme that I was not given a statement of deferred benefits.
Is there any information about your scheme on line?