Barclays 1964 Pension Scheme - thoughts on transfer?

Boston2000

Hi All

I’ve been browsing this forum, there seem to be knowledgeable folk when it comes to the Barclays 1964 Pension Scheme. I’d be keen to know thoughts my scenario.

Barclays 1964 Scheme
Joined Scheme in September 1983
Left Barclays in January 1988
GMP £135.20
Stated deferred increases of GMP 8.5% per annum
Future Value of GMP when 60 at 8.5% compounded growth (36 years) = £2,349.72
Barclays state the pension is made up solely of GMP
I am 55 in August
Transfer Value £58,220.39

Firstly, have I interpreted the Scheme correctly insofar that my calculations project an annual pension of £2,349 at 60? Would that amount increase over time? Also, Barclays say the pension at Date of Leaving (1 October 1998) was £135.20. I left Barclays in January 1988, so is this the date of this Scheme finishing? If so, does the growth of the GMP at 8.5% start from 1998 or from when I actually left in 1988? If 1998, the future value at 8.5% per annum is £1,039, which is obviously a significant difference.

In summary, which is the right calculation for pension at 60 and what are thoughts on the current transfer value?

Appreciate any guidance from the gurus on this Scheme!

Silvertabby

Firstly, are you male or female? Despite the increases to State pension ages (and the pension freedoms) GMP age remains 60 for women and 65 for men.

So, if male, then Barclays may not allow you to access this as a pension until 65, if taking it early involves an actuarial reduction for early payment.

The GMP increase factor will depend on the scheme rules.

Boston2000

Thanks. Female, looking to retire at 55 (later this year). I could either leave this pot until I’m 60 or transfer into my personal pension.

steve0510

If your pension is GMP only it is likely that you will have to wait until it becomes payable. Also, have you queried the differences in the date of leaving?

Boston2000

I’ve not queried the dates yet, just wanted to get myself informed before enquiring further. The transfer value quoted is valid for 3 months, so it seems there is no issue with transferring. If I don’t transfer, I’d just leave it alone until I’m 60.

steve0510

Transferring GMP shouldn't be a problem, but I would query those dates for piece of mind.

Boston2000

Thank you. I guess if my back of fag packet figures are correct, I need to evaluate a pension of £2,349 a year from when I’m 60 (5 years time) versus a transfer of £58,220 now into my personal pension (which I can access at 55). If it’s the lower figure of £1,039 a year pension, it would appear fairly compelling to transfer.

xylophone

https://www.royallondon.com/media/press-releases/2018/may/five-good-reasons-to-transfer-and-five-good-reasons-not-to-royal-london/

Barclays (Willis Towers Watson?) have advised that the whole pension is GMP.


It is pre 6/4/88 GMP so that once it comes into payment at GMP age, the scheme has no obligation to pay any annual increases.

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

It appears that Barclays will permit a transfer out but as this is a DB pension with benefits valued in excess of £30,000, you will be required to take the advice of a Pension Transfer Specialist.

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/pension-transfers-conversions/

https://adviserbook.co.uk/ You would tick "pension transfer" and "confirmed independent" when the menu comes up.

The PTS may or may not give a positive recommendation.

This would not prevent your transferring out (since the requirement is for you to have taken advice, not necessarily to have followed it) but see https://forums.moneysavingexpert.com/discussion/6032686/dont-use-hargreaves-lansdown

In sum, anybody seeking a transfer out needs to ask the adviser before engaging him whether he will provide the required declaration to the ceding and receiving schemes in the manner that those schemes prescribe, whether or not the advice is positive.

And you would wish to check whether or not your chosen receiving scheme would accept a transfer against advice.

Have you obtained a state pension forecast?

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

Andrew31

Nobody will be able to properly determine if transfer is right for you with info provided. As value is over 30k, you would need to take advice. If you do this make sure you are open and honest with adviser.

If you want to disclose your whole financial picture/attitude to risk on here, then maybe someone could give you a decent assessment, but it would take an awful lot of information to get an accurate assessment.

steve0510

just to confirm Barclays 1964 is still with WTW

Boston2000

Thanks for the replies, very useful and much appreciated.

Yes, it’s WTW. I’ve checked and qualify for full state pension from 67. This Barclays Pension represents a slice of the pie, so I’m just looking at it purely from a mathematical perspective.

I’d appreciate views on whether my calculated pension figure of £2,349 per annum makes sense (WTW won’t tell me). The transfer value of £58,220 would represent a 24.7 multiplier, but don’t forget I’d get the £58K now which I could invest into my personal pension. If there is no annual increase in the £2,349, from a time value of money perspective, it makes sense to transfer. I guess what I’m asking from those who understand this Scheme, is if the basis of my calculated figure of £2,349 is correct?