Final salary pension

michaelahutchinson

Hi, I have a very old final salary pension plan which ended many years ago but is now worth around £60,000. It always seems to be recommended to keep these schemes instead of transferring them but the annual income from it is stated as a bit over £1,000 which appears to equate to living at least 40 years from retirement date to get any benefit from the annual income compared to cashing it in or transferring it into another investment vehicle. I may be oversimplifying this or misunderstanding the calculation but it does seem that the benefit of the final salary scheme is only gained through extreme longevity. Would that be others' understanding ?

Dazed_and_C0nfused

Not necessarily.

What is "a bit over"  £1,001 or £1,100 is a big difference in relative terms.

Is the c£1,000 the current expected pension at your schemes normal pension age or will it revalue between now and then.

What is the NPA?

What inflation proofing does the scheme have post commencement?

Is there an automatic PCLS in addition to the £1,000?

What spouse/survivor pensions are payable if you die either before NPA or after the final salary pension has started to be paid?

Albermarle

Is the c£1,000 the current expected pension at your schemes normal pension age or will it revalue between now and then.

Or is is maybe even the sum you were told when you left the company , x number of years ago ?


Plus it will cost you up to £5K for the obligatory financial advice and in the end you might not be able to transfer it anyway.
If you scroll through the first pages of the forum you will see this is a topic discussed at length and at regular intervals. For example
DB Pension Transfer Advice — MoneySavingExpert Forum

michaelahutchinson

Thanks both - the figures are current from recent correspondence I asked for and will presumably revalue in the future. I did not provide accurate figures as I was only trying to illustrate that the yearly income equated to around 40 years from retirement date to match the cash value.

dunstonh

t always seems to be recommended to keep these schemes instead of transferring them but the annual income from it is stated as a bit over £1,000 which appears to equate to living at least 40 years from retirement date to get any benefit from the annual income compared to cashing it in or transferring it into another investment vehicle.

you cannot cash it in. So, that option is irrelevant.

Is that after the Pension commencement lump sum is paid or before? i..e £1k plus lump sum or no lump sum

Pablo7474

This question is asked all the time, in addition to other posters above points, does this pension have GMP? 

xylophone

How old are you now?

Male or female?

When exactly were you a member of the scheme? Was it a Contracted Out Salary Related Scheme?

What is scheme normal retirement age?

What exactly did your statement of deferred benefits on leaving have to say?

How does the pension revalue in deferment and in payment?

Have you obtained a state pension forecast?

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

What exactly does it say? Is a COPE shown?