Future pension calculator??

Brie

I have a small variety of somewhat small pension pots and would like to figure out what they might pay me when I decide to retire.  Unfortunately there are all pegged at different ages none of which are when I anticipate wanting them which is later than any of pension age.  So one I could have cashed in 4 years ago, another couple will be ready when I hit a significant age in about 11 months, state pension I think 18 months after that and the age at which I think I might retire shortly after that point.  

Is there any easy way to determine what the pensions might be worth?  One is a straight DB which I'll take as is but won't tell me if it will increase in value after NRD.  Another is  a DC which too small to be bothered changing to an annuity so I'll do 3 year drawdown or something but can't due that as I'm still paying into another work scheme and drawdown would mess up my tax free contribution limit.  Current pension which is a combi style DC with a DB underpin I believe - again I can get a value at NRD but no confirmation of what happens after.  Then the state pension and a foreign state pension as well (which I will probably get paid into an account in that country) and again no good idea of what happens after the 2 different NRDs. (UK being later than the foreign one).  And none of this is helped by not being able to get the info on all the schemes at any one particular date.

None of these are big enough for me to enlist the assistance of any sort of IFA so I'm having to DIY.  

So - anyone got any calculator ideas or advice on how to anticipate changes in values?  Something I can pop into excel would be marvellous.

And any other tax implications I need to watch out for???  Higher tax limit is not even visible from high ground so not a happy worry to have before or after retirement.  Always been PAYE in this country but was happy to submit tax returns when I lived elsewhere but between having a messy hectic life and a complicated set of funds I would love to get this sorted at some point sooner rather than later.

Marcon

Brie said:

I have a small variety of somewhat small pension pots and would like to figure out what they might pay me when I decide to retire.  Unfortunately there are all pegged at different ages none of which are when I anticipate wanting them which is later than any of pension age.  So one I could have cashed in 4 years ago, another couple will be ready when I hit a significant age in about 11 months, state pension I think 18 months after that and the age at which I think I might retire shortly after that point.  

State pension age is something you can check now: https://www.gov.uk/state-pension-age

Is there any easy way to determine what the pensions might be worth?  One is a straight DB which I'll take as is but won't tell me if it will increase in value after NRD.  

You're entitled to know what the rules of the scheme say, so the administrators of the scheme should be able to tell you whether you will have any statutory increases and if so on what basis these are calculated. Given they will be linked to inflation, they obviously can't predict the actual increase, but they can certainly confirm the rules which apply.

Another is  a DC which too small to be bothered changing to an annuity so I'll do 3 year drawdown or something but can't due that as I'm still paying into another work scheme and drawdown would mess up my tax free contribution limit.  

How small? If it's under £10K, you could take the whole lot in one go under the 'small pots' rule, which wouldn't trigger the Money Purchase Annual Allowance.

Current pension which is a combi style DC with a DB underpin I believe - again I can get a value at NRD but no confirmation of what happens after.  

Find out for certain what your current scheme is and what the rules say about any increases. Are you getting annual statements with projected values at your retirement date? If not, ask for one.

None of these are big enough for me to enlist the assistance of any sort of IFA so I'm having to DIY.  

A free consultation with PensionWise might help: https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise/book-a-free-pension-wise-appointment

So - anyone got any calculator ideas or advice on how to anticipate changes in values?  Something I can pop into excel would be marvellous.

Depends what sort of funds your DC plans are invested in, and what the charges are - but you should be able to get projections from each of the DC providers on request (and possibly online - worth checking if you have that facility).

tacpot12

Have a look at Intelligent Retirement Planning Calculator | EvolveMyRetirement

Brie

Thanks @Marcon
Obviously I need to pull together the numbers that are available.  I do have statements and various books/things they send for the occupational schemes so will have to drag some of the info out of those.

The issue with the increases though is that any time in the last 2 years I've asked for info I get the basics but my questions aren't properly answered.  And "it's covid, innit" means there are delays in any replies of 2+ months.  

"Small" DC is just under £30k and would convert to about £700 pa at the last estimate.  I had asked that it be taken out of the investment schemes and put into cash a couple of years back but that wasn't done.  Not about to complain as the value has increased about 30% in the last 4 years so I've gained from their error.  

I'd forgotten about Pension Wise.  And that reminds me that there may be an inhouse/industry related advisor I might be able to access - obviously either way they'll need the numbers available so that's my starting point.  

Any additonal advice re tax issues in the meantime would be grand.

Marcon

Brie said:

Thanks @Marcon
Obviously I need to pull together the numbers that are available.  I do have statements and various books/things they send for the occupational schemes so will have to drag some of the info out of those.

The issue with the increases though is that any time in the last 2 years I've asked for info I get the basics but my questions aren't properly answered.  And "it's covid, innit" means there are delays in any replies of 2+ months.  

Could you be a bit more specific about why your questions 'aren't properly answered' ? In particular, what exactly did you ask? Administrators get all sorts of variants on 'how does my pension increase', often from irate members who expect them to be able to predict the future, so are often on the wary side when it comes to responding.

Try asking a different question(!) which should get the answer you need - ask for a copy of the scheme booklet, if you can't dig out a copy from somewhere at the back of a cupboard. That will set out how increases are calculated.

Brie

Thanks again @Marcon
I think it was phrased something like "can you advise me at what rate my pension might increase for each full year after my NRD?" or similar.  I know that with a DC it would be a crystal ball but a FS/DB scheme should be very straight forward.  All I've had is "refer to the scheme booklet" without one being included or no answer to it at all. 

And as it's soooo long since between sending the request and getting a reply I just lose the will to live....and thinking that all this covid fuss will be over soon and then I can actually get it sorted.  Obviously it's dragged on so long now I've got to get on the ball a bit more.  

And I quite get the "irate members" asking vague questions....sad to say I've spent probably a third of my working life dealing with pensions in some way so I've been the receiving end admin!!!  But it's been a few years now so trying to refresh my brain on it all.....

That said - my 3 occupational schemes are all with the same administrators.  But as they are unrelated I can't talk to one person to get answers on all 3.  So 3 letters/emails required, tracking 3 different replies...I'm sure others are much more complicated.

Fortunately for me the Canadian pension plan website is somewhat straight forward and open enough to admit that any reply is likely to take 3 - 4 months.  Down side is there's nothing to tell me how they might translate CAD to GBP or if I must pay tax in Canada as well as in the UK.  Given they can't provide a projection without applying I've no idea if I would need to pay tax in Canada at all.  Sigh.  Plus needing to do it all by post as online applications aren't possible from the UK.  Plus plus needing to do the same for the OH as well.....double sigh.

Brie

Side query for the OH - is there a NEST site that would give a projection?  OH was possibly enrolled for a couple of years but neither of us is sure.

Marcon

Brie said:

Thanks again @Marcon
I think it was phrased something like "can you advise me at what rate my pension might increase for each full year after my NRD?" or similar.  I know that with a DC it would be a crystal ball but a FS/DB scheme should be very straight forward.  All I've had is "refer to the scheme booklet" without one being included or no answer to it at all. 

I think that's what has caused the problem. The administrators have assumed (rightly or wrongly) that you are asking for 'a number' (as many members do) and they can't possibly give you one, since statutory DB increases will be linked in some way to inflation - and nobody knows what that will be. There is a further complication if you have something called a 'Guaranteed Minimum Pension' - that has different treatment depending on when the GMP element of any DB pension was built up, and when you reached retirement. There is also the possibly of discretionary increases...rather rare, these day. So 'refer to the scheme booklet' is the most helpful they can safely be - although sending you a copy would have ticked the 'maximum helpfulness' box.

It's actually DC pensions that are the more straightforward in terms of pension increases, since the answer could indeed be a simple number depending on what the member chose at the point they bought an annuity (assuming that's what they did, rather than anything fancier like drawdown).

Marcon

Brie said:

Side query for the OH - is there a NEST site that would give a projection?  OH was possibly enrolled for a couple of years but neither of us is sure.

Try this: https://www.nestpensions.org.uk/schemeweb/nest/saving-for-my-future/what-kind-of-retirement-do-I-want/estimating-my-retirement-income.html

Might also be useful for you (the non-NEST calculator bit).

Thrugelmir

Brie said:

 I know that with a DC it would be a crystal ball but a FS/DB scheme should be very straight forward.  

As there's no investment growth with a FS/DB scheme it's safe to assume that in real terms that it will be worth what it is now. 

Marcon

Thrugelmir said:

Brie said:

 I know that with a DC it would be a crystal ball but a FS/DB scheme should be very straight forward.  

As there's no investment growth with a FS/DB scheme it's safe to assume that in real terms that it will be worth what it is now. 

There's statutory revaluation in deferment, and could be a late retirement factor if OP takes after the scheme's normal retirement date, so could wiggle a bit...but probably not that much in 'real terms', as you say.