Bridging pension option

Benny2020

Is it possible to have a negative bridging pension or have my scheme cocked up? They are offering me £8190 a year until 67 (i am 55 now) and then £-956?

garmeg

Maybe it drops by £956 to £7234 from age 67.

I cannot see them asking you for £956 each year from age 67. Makes no sense.

Benny2020

No, my standard pension due is £4581 or £8190 till i'm 67, then Minus £956?
Got to be a !!!!!! up.

xylophone

https://www.pensionstalk.co.uk/bridging-pensions-bridging-the-gap-to-an-increasing-state-pension-age/
The purpose of a bridging pension is to ‘bridge’ the gap between taking a scheme pension and receiving the state pension. Bridging pensions can operate in a number of ways, but generally they increase the member’s pension from retirement until SPA to account for that fact that the member is not yet in receipt of the state pension. Once the member is in receipt of the state pension the bridge then falls away. There is a broad spectrum of types of bridging pension: some bridging pensions are payable at the option of the member whereas others are built in to the rules; some provide an additional uplift to a member’s pension until SPA whereas others require a member to give up some of their post-SPA pension to fund the pre-SPA bridging pension.

Is the £956 a deduction from your Scheme Pension after SPA as above?

michaels

When is the 4581 due - possibly at age 60?  Otherwise the maths (giving you 8k pa for 12 years and taking less than 1 k off you from age 67) doesn't seem to add up (unless they expect you to live to age 167)

Benny2020

no, 4581 now. Its just one of the options, will get an explanation tomorrow off my adviser or the scheme as they are working together.

ukdw

The figures do make a certain amount of sense. If maximum weekly new state pension is £175, then an average annual figure would be £9,142 (175/7*365.25).   £9142 minus £956 = £8,186 which is very close to the £8,190 figure mentioned.   So these figures would mean the OP would be in more or less the same position pre and post state pension age (assuming the £8,190 increases in line with annual state pension rises).

How a pension of minus £956 is achieved is another matter - if there are other pensions due from the same provider then maybe one of those would be reduced by £956 at state pension age to compensate. Otherwise I suspect that the calculations behind the illustration are purely theoretical and don't take in to account the fact that the pension in question is too low to fully bridge state pension.