Pre 1988 GMP

Troytempest

I have a pension that has a chunk of Pre 88 GMP. I am aware that this will never increase in payment which in a period of high inflation is bad luck.

Can I presume that if I don't need the money I can leave it in deferment and it will keep on growing at it's predefined rate - 7% in this case.

Thank you.

xylophone

Can I presume that if I don't need the money I can leave it in deferment and it will keep on growing at it's predefined rate - 7% in this case.

Its predefined rate referred to the rate up to GMP age (65 for a man).

If the pension is left in deferment after GMP age, the GMP increases on a different basis.

https://www.gov.uk/guidance/provide-a-pension-for-your-scheme-member

Troytempest

Thank you - sounds worth considering.

Marcon

Troytempest said:

I have a pension that has a chunk of Pre 88 GMP. I am aware that this will never increase in payment which in a period of high inflation is bad luck.

Can I presume that if I don't need the money I can leave it in deferment and it will keep on growing at it's predefined rate - 7% in this case.

Thank you.

You need to check if your pension scheme's rules (and they will be individual to the scheme in question) permits you to opt for what is known as 'late retirement'. Also check with them what increases apply where you have the option to delay drawing your scheme pension beyond the scheme's normal retirement age.