Pension statement

henry24

I'm due to receive a pension in a couple of years so trying to work out what my statement means.

It says transfer value £260000 so that must mean the value if I was to transfer to another provider. It also says that is the amount if I'd died 

It then says guaranteed pension pot £120000. Why such a big difference? 
It also says with my GAR I could receive £14000 per year based on a value of £228000

I've rounded the figures to keep it simple but what do they all mean and although things can change what figures could I roughly base things on

mark55man

Hello - you haven't had a response to this so just bumping to give you a second chance tomorrow.

It might help if you give a little more detail about the pension - there are so many variants DC/DB/GMP/... so maybe a little more from the statement rather than just the numbers

if you are looking at £14K a year with a transfer value of £200K then everyone would give  advice not to transfer (assuming if you were even thinking of it)

ader42

I'll chime in.

£14k sounds generous...

I suspect at age 65, with a £228k pot you'd probably be looking at £9k per year as an annuity maybe they are assuming some growth might happen to about £340k before you retire to get it to a £14k GAR?

"Why such a big difference?"
Things fluctuate with investments.

There may also be penalties if you transfer - so be sure of what you want to do before you do it.

dunstonh

It then says guaranteed pension pot £120000. Why such a big difference? 

Probably £120k is the capital value plus annual bonuses.    The difference could be the final bonus accrued to date which is not shown in the current value but is shown in the transfer value.

It also says with my GAR I could receive £14000 per year based on a value of £228000

Projections are usually done from the current value rather than the transfer value and then reduced by 2% p.a. to show the impact of inflation to give you a today's spending power figure.

I've rounded the figures to keep it simple but what do they all mean and although things can change what figures could I roughly base things on

Worst-case scenario, the £120k figure is what you have.  Although in reality, you can probably go off the higher figure.

xylophone

Some (earlier in the year) previous from the OP

https://forums.moneysavingexpert.com/discussion/comment/79035993/#Comment_79035993

  I've just turned 60 and after reading this thread I've been checking to get some idea on whether I could retire but with the above pension I lose the GAR if I take it before 65. I also have another pension from the late 70s also with a GAR that I could take now as well as a 15 year railway pension from 65. My thinking is maybe claim the pension that I can now save it until I'm 63 then use it with my savings until the other ones pay out at 65

https://forums.moneysavingexpert.com/discussion/comment/79035993/#Comment_79035993

 I started a pension in the late 70s putting in £270 per year this is now worth around £48000 and according to the statement with the GAR would pay me £4500 per year from age 60 which was last month for 5 years or life. My thinking is to start claiming this without taking the lump sum as I'll make more money by not doing so.
I then wanted to increase my contributions but would have lost the GAR so started another pension which is the one with £110000 in and the £6200 is at 65 so this should increase over the next 5 years. This one I'm thinking about taking 25 % at 65
I can't increase the amount I pay in or transfer any money into it without losing the GAR and as I'm single with no family I'm not to bothered about what happens to it when I die.
I have been working all my life and even now at approaching midnight I'm working in a signal box thinking it's time to let someone else have a go 

xylophone

OP

You say that you are aged 60, single and with a number of pension arrangements, including a (presumably) Defined Benefit pension from a Railway Scheme.

Can you set out exactly what these are?

Have you completed and submitted an Expression of Wishes naming the beneficiary (ies) for each of your pensions?

Have you obtained a State Pension Forecast? If not, see

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

henry24

Just to answer some points  I am 60 and I had 3 private pensions 2 of which I still pay into I also have a railway pension. The one above I have claimed and keep the money so when I have enough I can retire the rest are payable at 65 
All 3 private ones had a GAR, I'm not transferring them but I've just had a statement so trying to work things out.
I have had a state pension forecast and I will get full amount 

xylophone

I am 60 and I had 3 private pensions 2 of which I still pay into I also have a railway pension. The one above I have claimed and keep the money so when I have enough I can retire the rest are payable at 65 

You originally had 3 DC pensions?

You have accessed/are drawing down one of those DC pension?

You are currently contributing to two DC pensions as well as to your DB Railway Pension?

Having accessed a DC pension, are you sure that you have not triggered the Money Purchase Annual Allowance in respect of your contributions to the two DC schemes you mention?

https://www.moneyhelper.org.uk/en/pensions-and-retirement/tax-and-pensions/money-purchase-annual-allowance-mpaa

henry24

xylophone  yes I had 3 due to not being able to increase payments without losing the GAR. One was payable from my 60th birthday though an annuity the other 2  that I still pay into from 65
I've never heard of the Money Purchase Annual Allowance but will now look into it 

xylophone

xylophone  yes I had 3 due to not being able to increase payments without losing the GAR. One was payable from my 60th birthday though an annuity the other 2  that I still pay into from 65
I've never heard of the Money Purchase Annual Allowance but will now look into it 

Then MPAA may not be relevant - see link in my previous.