Pension with GAR

tijo2011

I have a small pension pot with a Guaranteed Annuity Rate of 9% that I took out in the 1980s. I stopped paying in when I joined a work pension scheme and the policy was made paid up. I want to start paying extra contributions and thought this might be a good place to put it. Scottish Widows says I can do this though the rules changed on GAR pensions. Will I still get the GAR on the original pot (Plus any bonuses)? If so how will they Work this out? Or should I leave it alone? 

dunstonh

I stopped paying in when I joined a work pension scheme 

Thats a shame. 

Will I still get the GAR on the original pot (Plus any bonuses)?

The GAR and the bonus on the with profits fund are two different things.  The GAR is a contract right.

Dox

tijo2011 said:

Will I still get the GAR on the original pot (Plus any bonuses)? If so how will they Work this out? Or should I leave it alone? 

Yes, you'll still get the GAR on the original pot, including any bonuses. SW's systems will automatically keep track of the amount which will benefit from their GAR, so you could choose to pay in further contributions if you wish. 

tijo2011

dunstonh said:

I stopped paying in when I joined a work pension scheme 

Thats a shame. 

I know... but I was young and stupid... theres not enough publicised about GAR’s.
Thanks for the reply, really helpful

tijo2011

Dox said:

tijo2011 said:

Will I still get the GAR on the original pot (Plus any bonuses)? If so how will they Work this out? Or should I leave it alone? 

Yes, you'll still get the GAR on the original pot, including any bonuses. SW's systems will automatically keep track of the amount which will benefit from their GAR, so you could choose to pay in further contributions if you wish. 

Thanks Dox. I’m happy with SW’s performance on another pot I have so better off than some people. I am hoping the terminal bonus on £10k from 30 years ago will be massive!! 😄