Old Staff Barclays Pension

glitzy

I am looking for some help in understanding an old staff Barclays pension I had please.

Transfer entitlement

Total transfer value. £84,681.24
Guaranteed transfer value. £84,681.24
which includes

Scheme pension built up before 6 April 1997

Transfer value of Guaranteed Minimum Pension (GMP) £42,101.24
Other rights. £42,580.00

Pension benefits

Pension at 18 April 1986
GMP built up before 6 April 1988. £123.76 a year
Scheme pension (over the GMP) built up before 6 April 1997 £465.74 a year

Total Scheme Pension. £589.50 a year

State Pension Deduction. £73.69 a year

Also it is written that -The Normal Retirement Date is the earliest date the member maybe able to take their pension without any adjustment for early retirement, which they have as 07/04/2023.

I am 55 now, so would I be able to have 25% now, if so would it be £21,000?

To be honest I thought the pension was not that much, so I’m crossing my fingers that it is, even if I do have to wait another 5 years?

kidmugsy

I don't understand. Are you saying that by giving up a pension of £589.50 minus (eventually) £73.69 a year you will get a transfer value of £84,681.24?

Really? £500 p.a. versus £80k? There's something missing in this story. Is it that the pension at age 60 would be far bigger than £589 p.a.?

Brynsam

glitzy wrote: »

I am looking for some help in understanding an old staff Barclays pension I had please.

Transfer entitlement

Total transfer value. £84,681.24
Guaranteed transfer value. £84,681.24
which includes

Scheme pension built up before 6 April 1997

Transfer value of Guaranteed Minimum Pension (GMP) £42,101.24
Other rights. £42,580.00

Pension benefits

Pension at 18 April 1986
GMP built up before 6 April 1988. £123.76 a year
Scheme pension (over the GMP) built up before 6 April 1997 £465.74 a year

Total Scheme Pension. £589.50 a year

State Pension Deduction. £73.69 a year

Also it is written that -The Normal Retirement Date is the earliest date the member maybe able to take their pension without any adjustment for early retirement, which they have as 07/04/2023.

I am 55 now, so would I be able to have 25% now, if so would it be £21,000?

To be honest I thought the pension was not that much, so I’m crossing my fingers that it is, even if I do have to wait another 5 years?

You can't take 25% now from the Barclays scheme but delay taking actual pension payments from the scheme, because that's not how defined benefit pensions work. You would need to transfer out to a SIPP or similar.

The pension quoted is as at 1986 and your GMP will most certainly have been merrily revaluing away since then. If you left in 1986, the non-GMP part of your pension earned for service in the scheme from 1 January 1985 will be subject to revaluation; anything earned before then could be frozen. You'd need to check with the scheme.

sandsy

glitzy wrote: »

Pension benefits

Pension at 18 April 1986
GMP built up before 6 April 1988. £123.76 a year
Scheme pension (over the GMP) built up before 6 April 1997 £465.74 a year

Total Scheme Pension. £589.50 a year

All of these figures are at 1986. However, every year these numbers go up. It's possible that the GMP may have gone up as much as 7% every year. The remainder will have gone up roughly in line with the inflation since 1986, subject to some caps.

So the transfer value quoted can't really be considered properly when you don't know the current value of the benefits it relates to.

Search up "Barclays" in this Pensions forum and you may find some helpful information.

As you're already 55, you could also try asking the pension scheme for an early retirement quote to get a better idea of up-to-date figures but remember that these won't reflect what you might get at 60 as the figures will be reduced to allow for the fact that the pension would be payable for 5 years longer.

xylophone

As you're already 55, you could also try asking the pension scheme for an early retirement quote to get a better idea of up-to-date figures but remember that these won't reflect what you might get at 60 as the figures will be reduced to allow for the fact that the pension would be payable for 5 years longer.

You may find this thread of interest.

https://forums.moneysavingexpert.com/discussion/5865725/gmp-and-deferred-pension

gdrforest

Your Barclays pension details should be available online from the Barclays pensions portal. Help can be found here:

Email: barclaysteam@willistowerswatson.com
Pensions Helpline: +44 (0)1737 227567

DT2001

Willis Towers Watson are updating their method of contacting pensioners and you should have had a recent letter advising of log on instructions.
If you google GMP increases in deferment you’ll get a hit for Old Mutual which has a table of rates for different dates of leaving. You can then calculate the value of GMP payments at GMP age (60 for female, 65 for men).
Get a quote from WTW for early drawdown. Your option maybe restricted as GMP element will be a high % of total if increases in deferment at 8.5% (if you left in 86 and Barclays applied the fixed rate as they did for me in 95).
Post your findings and someone will advise re transfer values/options and the information from WTW as ‘we’ are not all enamoured by their service.

Tcquins

Your GMP increases all depend on date of leaving Barclays has section 21 orders, fixed rate, and section 148 orders (national average earnings) for much later leavers.

You need to get your up to date figures, rather than at date of leaving.

Just check the scheme guide at the back of the documents along with your CETV.

As the value is over 30k you would need financial advice on a transfer to a DC pot where you could take the 25% tax free cash. Usual advice is to keep your guaranteed income, rather than transfer unless there are a multitude of reasons to transfer. (Just being 55 and taking the 25% tax free not being one of them usually)

glitzy

Thank you so much for all your replies , I’m working my way through the links, I’m waiting for Barclays team to get my quote , which will take 5-10 days. I did think it was too good to be true but I have managed to pay enough into my NI on top of contracting out if SERPS. I have been fortunate to always had work , so fingers crossed, I will get more then I thought🤞