Delay pension 'til April for GMP Revaluation?
in Pensions, annuities & retirement planning
8 replies 566 views
This is likely to be one of those 'it depends' questions but please bear with me.
I'm 2 years retired and living off a small DC pension until commencing a DB pension on my 61st birthday in December this year. The DC pot will be spent by then.
I understand from the DB quotation pack that my GMP is revalued at the end of each financial year for each completed FY.
With inflation hitting 10+% should I defer starting my pension from December to April to bake in this revaluation? Deferring would be financed using savings so would the benefit outweigh the cost of burning, say £6k savings or is it likely to be insignificant? I don't really have a clue what proportion of my low £20'sK annual pension is GMP.
My pensionable service was 1982 - 2016 if that's relevant. I have an up to date SP forecast.
Thanks for you thoughts.
4.7kwp PV split equally N and S(!) 20° 2016.
Nissan Leaf (2021 Tekna e+).
0.9kw Ripple Kirk Hill.
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So, increases may very well be due 3 times a year with GMP. It is worth asking your pension administrator. To complicate things there is the early retirement factors, the fact that sometimes the accrued pension can go down slightly at each of the above points (but the general trend will always be up) and when you put the pension into payment there is a policy about the first year increases - depending when it was put into payment.
Statutory excess revaluation, however, is based on price inflation.
What does your scheme guide say about how GMP is revalued in deferment?
Is your scheme private or public sector?
Which gives you pre 88 GMP
Post 88 GMP (to 1997)
Excess over GMP.
Your statement of deferred benefits on leaving the scheme should show this.
What exactly does your state pension forecast say?
What is the COPE shown?
This is because when they use the occupational pension revaluation tables, it works on whole years so if you retire before your deferement date, they count one less back so you get a lower pension.