Buy-Out 32 Plan with L&G

Hal17

I am due to get a small pension shortly from a Buy Out 32 Policy with L&G after it has sat there for about 34 years. The pension value is only about £14,500 and it has it has a GMP value. I remember doing some pension planning and that the GMP value was about £2K per year.

However, all the paper I have received asking what I want to do and risk warning questions etc only gives 4 options and states not all options are available with your Buy Out Plan

1. Leave the pension pot invested
2. Buy a guaranteed income for life
3. Take a flexible income
4. Take a cash lump sum

There is no further information on the yearly GMP £ value, no boxes to tick to take this option. I am confused, it is almost as if they want me to forget that the policy has a GMP value?

Has anyone any experience of this type of stuff? Guess I will need to ring them, just seems strange not to mention anything about it.

xylophone

Do you have your policy and key features document?

https://www.legalandgeneral.com/_resources/pdfs/pensions-retirement/pensions/Individual_Buy_Out_Plan_KFD_w6298.pdf may be of interest.

have you reached GMP age?

Have you obtained a state pension statement?

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

dunstonh

However, all the paper I have received asking what I want to do and risk warning questions etc only gives 4 options and states not all options are available with your Buy Out Plan

There are no S32 buy out bonds that offer all options. The nature of the plan means it would be difficult to do so.

Plus, it is worth remembering that the provider will only tell you their options. Not those that are available elsewhere.

I am confused, it is almost as if they want me to forget that the policy has a GMP value?

That would be option 2.

In the stepped approach leading up to retirement, they want to get an idea of what option or options you are considering. Then as you get closer, they only have to focus on those options.

Hal17

Thank you both for your help and prompt replies. Thank you Dunstonh for pointing out that it is option 2 that I need to select.