Old DB Barclays Pension

annasel

Hello, I  would appreciate some advice as I am confused.  I have a Barclays Pension DB (1964 scheme) the transfer value is 53976.25 and the pension would be paid annually is £348.78.  Does this seem a bit low would I be better transferring it to SIP?  I am 52 and I get the pension at 60.
Thanks a lot in advance

MallyGirl

a rough rule of thumb is that you could withdraw something like 3.5-4% from a DC pension and likely not run out of money.
3.5% of £50k (you would have to pay most of the £3976 for transfer advice) is £1,750 so £348.78 seems pretty low but make sure you are comparing apples with apples. Is that £348 when you retire at 60 or at some earlier age? What exactly does it say? There will undoubtedly be growth due to inflation happening and maybe some spousal benefits.

xylophone

You are a deferred member of this pension scheme?
You are female?
If you are a deferred member, when did you work for Barclays?

Dale72

It does seem a bit low, my old Halifax one has a transfer out value of 68k, and my last statement gave me £930 pa. 

Marcon

annasel said:

Hello, I  would appreciate some advice as I am confused.  I have a Barclays Pension DB (1964 scheme) the transfer value is 53976.25 and the pension would be paid annually is £348.78.  Does this seem a bit low would I be better transferring it to SIP?  I am 52 and I get the pension at 60.
Thanks a lot in advance

Are you sure the £348.78 wasn't your pension at the date of leaving service? If so, it is likely to have revalued (i.e. increased in value) between the time you left service and the time you access your benefits. 

dunstonh

 I have a Barclays Pension DB (1964 scheme) the transfer value is 53976.25 and the pension would be paid annually is £348.78. 

When was the last time the £348.78 was updated?    If the CETV is recent but the projected income is old, then you are not looking at the latest figures.   That £348.78 would increase each year since it was last updated.

annasel

xylophone said:

You are a deferred member of this pension scheme?
You are female?
If you are a deferred member, when did you work for Barclays?

Hi, yes I am deferred, I am female and last worked at the bank in the late 1980's

annasel

dunstonh said:

 I have a Barclays Pension DB (1964 scheme) the transfer value is 53976.25 and the pension would be paid annually is £348.78. 

When was the last time the £348.78 was updated?    If the CETV is recent but the projected income is old, then you are not looking at the latest figures.   That £348.78 would increase each year since it was last updated.

Hi thanks, I have requested clarification on the above, it could explain a lot.  Thanks

Brenster

Dale72 said:

It does seem a bit low, my old Halifax one has a transfer out value of 68k, and my last statement gave me £930 pa. 

Forgive my ignorance here, but how can these numbers be correct ? you would need a retirement of 70 years (without growth to break even), even with the healthiest of diets and keeping fit, i dont think any of us will be living till 130 !!!
I assume i must be missing something ???

Albermarle

Since the late 80's inflation has averaged around 3.5% .
So very roughly if your projected pension when you left was £350 , then presuming it is linked to inflation it would be very approximately be today - £1000 pa .

ErinGoBrath

Albermarle said:

Since the late 80's inflation has averaged around 3.5% .
So very roughly if your projected pension when you left was £350 , then presuming it is linked to inflation it would be very approximately be today - £1000 pa .

Could be a lot higher if it is mostly GMP - which is quite possible. Especially if the GMP has fixed rate revaluation!