Deferred pension statement

brisser

My pension fund administrator for a former employer, is no longer able to provide me with an estimate of an annual pension amount, as they last did in 2013. They now only provide a statement of funds at the time of leaving and say I have to take that to an Independent financial advisor to produce an estimated annual pension amount, when I can start drawing it in 2026. Every financial advisor I have contacted via their website has not replied to my request to translate it and answer what the fee will be. Is there an easy formula I can apply, based on an average price Index %? or other way I can work if out myself, in lieu of any financial advisor willing offer this service,

xylophone

Is this a deferred defined benefit pension?

brisser

In the sense that I will not be able to start drawing it until 2026, yes? But not deferred in the sense that I will be delaying it until a later date to get a higher annual sum.

Linton

brisser wrote: »

In the sense that I will not be able to start drawing it until 2026, yes? But not deferred in the sense that I will be delaying it until a later date to get a higher annual sum.

This is the important part of "Is this a deferred defined benefit pension?" is in bold. So much the same question as my initial assumption that it isnt.

brisser

The statement shows £12,400 in the pot as of date of leaving in March 2004, which I can start drawing at age 60 in 2026. If I apply say 3% per annum growth as suggested, I assume I would take this figure and add 3% for a valuation in 2005 and then take that figure and add 3% in 2006 and so on? If that makes sense, not just a one off of 3% of the £12,400 amount in the fund. When in 2013 my company fund management last supplied (they say that cannot do this anymore, presumably for liability concerns following 2008 financial crash) the estimated annual pension they quoted was approximately £20,000 per annum as of 2026.

brisser

The statement is headed "Mars Associates Retiremend Plan (MPP), Statement of deferred benefits on March 2004. The fund value is made up of GMP fund before April 1988 and after April 1988 and then a plan pension over the GMP before and after April tax year 1997. This amounts to a total of £12,553,.68 a year as of date of leaving, 2004. It quotes of up to 4.5% per year growth for the GMP and of up to 5% growth per annum for the plan pension over the GMP.

brisser

Do you think that if I apply a 3% growth average as per Linton suggests, that I can then apply this in the way I previously suggested of adding 3% to the £12,553 after the first full year after leaving and then add a further 3% to that combined figure the following year?

Linton

brisser wrote: »

The statement is headed "Mars Associates Retiremend Plan (MPP), Statement of deferred benefits on March 2004. The fund value is made up of GMP fund before April 1988 and after April 1988 and then a plan pension over the GMP before and after April tax year 1997. This amounts to a total of £12,553,.68 a year as of date of leaving, 2004. It quotes of up to 4.5% per year growth for the GMP and of up to 5% growth per annum for the plan pension over the GMP.

That changes everything - ignore my postings, I will delete them. You have a deferred Defined Benefits pension with a guaranteed pay out. You do not have a "pot" with a pot size. the calculation should be relatively straightforward but I will leave it to someone who knows more about DB pensions.

brisser

Thank you Linton for your help.

JoeCrystal

brisser wrote: »

My pension fund administrator for a former employer, is no longer able to provide me with an estimate of an annual pension amount, as they last did in 2013. They now only provide a statement of funds at the time of leaving and say I have to take that to an Independent financial advisor to produce an estimated annual pension amount, when I can start drawing it in 2026. Every financial advisor I have contacted via their website has not replied to my request to translate it and answer what the fee will be. Is there an easy formula I can apply, based on an average price Index %? or other way I can work if out myself, in lieu of any financial advisor willing offer this service,

I thought as a deferred member of a DB scheme, you can request a benefits statement once a year? Still, you don't need to worry that much since it ought to keep up with inflation. A 2% inflation/increase would result in a pension of almost £20k in 2026 or £12.5k in 2004's money term.

xylophone

This is a deferred defined benefits pension.

You have pre 88 GMP, post 88 GMP and excess.

You should have a statement of deferred benefits on leaving.

Do you have a scheme booklet? It should give the details of how your pension revalues in deferment.

https://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/

https://www.barnett-waddingham.co.uk/comment-insight/blog/2012/07/24/revaluation-for-early-leavers/

Are you male or female?

Have you obtained a new state pension statement?

https://www.gov.uk/check-state-pension