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Lose Your Pension If You Have No Dependents

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Lose Your Pension If You Have No Dependents

54 replies 4.7K views
Wow, I'm in a Defined Benefit pension scheme. It is worth 6 figures. I have no dependents.
Did you know that if I die before retirement the pension 'disappears'.
I want to transfer the pension to protect my assets - Financial advisers won't recommend the transfer, but they are happy to charge £1,500 for their advice.
I have done some rough calculations and this could affect over 40,000 people in the UK, and the pension value could be c.£3bn.
This is an absolute scandal.
Martin can you investigate further?
I have spoken to my pension provider, the Money Advisory Service, my MP and we are now communicating with Guy Opperman (the pensions MP)
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Replies

  • edited 27 May at 2:31PM
    JoeCrystalJoeCrystal Forumite
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    edited 27 May at 2:31PM
    Really? Not even a death lump sum? Besides, you may find yourself a spouse/children in the future. Your future is still an unknown element.

    Frankly, it is not a scandal, and you are very fortunate to have access to a DB scheme. You probably are not paying very much into it with your employer paying a lion share of it. It is not your money; it is held on your behalf along all other members.

    I have no sympathy for you at all.


  • edited 27 May at 2:42PM
    BrynsamBrynsam Forumite
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    edited 27 May at 2:42PM
    Wow, I'm in a Defined Benefit pension scheme. It is worth 6 figures. I have no dependents.
    Did you know that if I die before retirement the pension 'disappears'.
    I want to transfer the pension to protect my assets - Financial advisers won't recommend the transfer, but they are happy to charge £1,500 for their advice.
    I have done some rough calculations and this could affect over 40,000 people in the UK, and the pension value could be c.£3bn.
    This is an absolute scandal.
    Martin can you investigate further?
    I have spoken to my pension provider, the Money Advisory Service, my MP and we are now communicating with Guy Opperman (the pensions MP)
    So you've only just noticed? Well done for being so on the ball all these years. Nothing scandalous about it - up to you to ensure you understand the nature of the scheme you're in. That's how DB schemes work.

    As for 'doing some rough calculations' - based on what? People are providing for their own retirement. If they want to move out of the secure waters of DB, they can.

    You're in a non-contributory scheme (otherwise the rules would almost certainly provide for a refund of your personal contributions) and have a decent pension to look forward to. Some people are never satisfied. 
  • ratechaserratechaser Forumite
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    Troll or angry idiot, either way not worth investing in a detailed response. Some of you are just too kind...  :D
  • SilvertabbySilvertabby Forumite
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    As others have said, if you die early the 'savings' your pension scheme makes pays the pensions for those/their dependants  who live to 100.  It's the way all pensions work.

  • foofi22foofi22 Forumite
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    I prefer to think of solutions when presented with such a dilemma.  In no particular order:
    - Acquire one or more dependants
    - Live to 100
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