Midland / HSBC "clawback"

xylophone

And I believe she has checked her new state pension entitlement, and she has enough years to qualify in full.

Your aunt is in the transition period between the old and the new systems.


She has actually obtained a new state pension forecast?

Silvertabby

AnotherJoe wrote: »

I think thats by no means the only pension scheme which has earlier retirement than state age and then deducts something when SP comes into play.
Why would it help your relative with long term financial planning? Surely she should always have been planning on this basis ?

I find it worrying for customers that someone who worked in a bank for umpteen years wasn't aware of such a basic element of their own pension scheme. What else might they have got wrong with customers accounts?

There was some hoo-ha a few years ago about female bank employees who complained that they had been 'diddled' out of their bank pensions. They claimed that when they left their jobs to start their families, they were given a wadge of money - which came in very handy for buying prams etc. However, when they reached retirement age and tried to claim their pensions they were told that the 'handy wadge of money' had actually been a full refund of their pension contributions.

Would a bank employee really have just read 'sign here for £X' and done so without reading any further?

Brynsam

Silvertabby wrote: »

Would a bank employee really have just read 'sign here for £X' and done so without reading any further?

Sounds as if quite a lot did - either that or there has been a very convenient mass memory lapse...

Worth remembering that at the time many of those now retiring would have joined the bank's pension scheme, membership of the scheme could have been compulsory (up to 1988), so any 'thinking about it' simply didn't happen.

Thrugelmir

fwor wrote: »

The question is: does anyone know if there is any likelihood of this provision getting removed?

Shareholders voted against (96%) the proposed resolution at the AGM on Friday. Difficult to see on what grounds any further challenge can be made. As there's nothing illegal in the Pension Schene enforcing their own scheme rules.

Not helped by the fact that HSBC faces significant challenges in the future.

westv

Silvertabby wrote: »

Would a bank employee really have just read 'sign here for £X' and done so without reading any further?

Maybe it was another case of people sticking their heads in the sand. "Pensions? That means nothing to me and it's years away so it's of no relevance". That sort of thing.

Silvertabby

westv wrote: »

Maybe it was another case of people sticking their heads in the sand. "Pensions? That means nothing to me and it's years away so it's of no relevance". That sort of thing.

Like the WASPI women !

maisie_cat

My husband has just retired and his pension is front loaded so that when he reaches SPA it drops to offset the SP. I don't think it's unusual, just a different way of paying out for early retirees

ffacoffipawb

Silvertabby wrote: »

Like the WASPI women !

Like the WASPE women.

Just fixed that for you.

GunJack

Thrugelmir wrote: »

Not helped by the fact that HSBC faces significant challenges in the future.

What challenges??

fwor

westv wrote: »

Maybe it was another case of people sticking their heads in the sand. "Pensions? That means nothing to me and it's years away so it's of no relevance". That sort of thing.

You could look at it that way, but as already explained, she joined Midland straight out of school, and there genuinely would have been no point in her examining the finer points of the scheme - it was "free", and there was no option to negotiate different terms anyway.

It's a bit too simplistic to call it "sticking your head in the sand". Where someone has just gone from school to their first job, there can be a lot more important things to think about than what might happen in fifty years time.