Standard life GMP

plumb1_2

Hi  I have one of my pension pots with standard life.
I had a lump sum of £3k invested many years ago, it transfer value is £35,345 , it’s in with profits 100% allocation.
It has a GMP of £1186.00 , Can someone tell me if this is any good ? If I decide to swop out of the with profits into cash 35k would equal 29 yrs at £1100 roughly 
my thoughts are I am looking into a 15 yrs payment life, so the 35k would be £8750 lump sum leaving £26,250 divided by 15yrs =£1750
iam just confused about how the GMP works ? On the standard life site it says I will loose the GMP if swapping funds, but is it worth keeping it ?

( section 32 I think)? plus I think I would need a ifa to transfer it, and don’t think a ifa would be interested in a small pot, and would want a high fee.

other pension pots , RL, vanguard , nest roughly £260k , full sp in 18 months,

xylophone

Do you mean that you were formerly a member of a contracted out occupational pension scheme which was transferred into a S32 policy with Standard Life?

https://www.financialadvice.net/s32_buy_out_plan/zone/1288

plumb1_2

xylophone said:

Do you mean that you were formerly a member of a contracted out occupational pension scheme which was transferred into a S32 policy with Standard Life?

https://www.financialadvice.net/s32_buy_out_plan/zone/1288

No I don’t think so, I only ever had a £3k lump sum transfer into the pension, from another pension by ifa 

xylophone

Is this a GAR ( Guaranteed Annuity Rate) rather than a GMP?

plumb1_2

Not a GAR had one of those on my RL pension, this standard life has a GMP of £1186

xylophone

No I don’t think so, I only ever had a £3k lump sum transfer into the pension, from another pension by ifa 

If you are sure that this is indeed a GMP in a S32 pension, then it seems likely that the transfer in was indeed from a contracted out pension scheme - see link.

If so, is the GMP from pre 88 or post 88?

plumb1_2

Managed to find original paperwork 
Transfer Plan, (variable benefits) with profits fund.
Contribution date 18/03/86 sum £ 3473.92. So pre 88
illustrative benefits inc terminal bonus £50835; pension £65318 pa ( I wish)
Guaranteed benefits at normal retirement age (65)£1182.72
widows pension £591.36

Notes
The units purchased by £1668.95 of the transfer value must remain invested in the with profits fund

on death before retirement part of the fund will be used to provide a widows Guaranteed minimum pension 

xylophone

You must now be within six months of age 65 and the maturity of  the policy.

Have you actually been in contact with SL for an up to date illustration?

plumb1_2

xylophone said:

You must now be within six months of age 65 and the maturity of  the policy.

Have you actually been in contact with SL for an up to date illustration?

I’ve not been in contact with them , but received my yearly statement 4 weeks ago stating value at £35,228 so I don’t think that will change much?

So it it worth keeping the GMP? Looking at my 15 yr time frame.
How would it affect a drawdown with or without it?
On SL website it gives me a option of changing to another SL fund,(loosing GMP) but on my limited knowledge and reading on the site I don’t know if their other funds are better?
If I transferred it into one of their funds, would I then be able to transfer it to vanguard?

I am still working part time and earn enough to cover expenses and savings to cover min 4 yrs.
This year before April I opened a vanguard sipp £20k, £25k with government added. Not invested left it as cash.

xylophone

On SL website it gives me a option of changing to another SL fund,(loosing GMP) 

I am finding this rather puzzling.

If this is a S32 with GMP (see link), then the insurer is obligated to pay a pension at least equal to the GMP at GMP age, whether or not the fund has grown enough to support the GMP - I do not see that this gives the insurer the ability to allow you the option.

And if what you have amounts to a "safeguarded benefit" valued at over £30,000, then you would need specific advice.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

I am wondering if perhaps the original transfer was from some sort of "protected rights" arrangement rather than from a DB scheme with GMP?

https://www.financialadvice.net/protected_rights_pension/zone/378

https://www.aegon.co.uk/support/faq/Understanding-our-products/retirement-products/pension-contributions/What-is-non-protected-rights-npr-protected-rights-prp.html

 PRs were abolished and became ordinary pension rights so perhaps this is what permits SL to offer the option - even so however, I am not clear as to whether what is offered under your particular policy would count as a "safeguarded benefit".

It seems to me that you must clarify your exact situation with SL before coming to any decision.

plumb1_2

Thanks, is there any particular questions I should be asking them ?