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Gauranteed pension
Silverbird65
Posts: 451 Forumite
Hi my husband who retires in July has a small contracted out pension £1452 per yr(wish it was per month) with a lump sum that if we don't take will be worth less and less. They are asking does he want the pension paid monthly in arrears . What's the best way to take the monthly payts.
Thanks
Thanks
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what are the options?1
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Arrears immediate annual.0
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Does he want to buy an annuity? Often with small funds, it's better not to buy an annuity. However, if the annuity has a guaranteed high rate then it can be.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1 -
As opposed to what...?Silverbird65 said:Hi my husband who retires in July has a small contracted out pension £1452 per yr(wish it was per month) with a lump sum that if we don't take will be worth less and less. They are asking does he want the pension paid monthly in arrears . What's the best way to take the monthly payts.
ThanksGoogling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!1 -
No the over is a guaranteed minimum that has to be paid out due to contracted out period. They have offered a paltry annuity along side or a lump sum.0
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Hi my husband who retires in July has a small contracted out pension £1452 per yr(wish it was per month) with a lump sum that if we don't take will be worth less and less.
Do you mean that he has a Guaranteed Minimum Pension from a DB company pension scheme?
Was there any excess over GMP?
Does it relate to pension accrued pre or post 5 April 1988?
What information has been given about increases in payment?
As above, what options are offered?
Has he obtained a state pension forecast? If so, what exactly does it say?
https://www.gov.uk/check-state-pension
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State forecast says cope amount £17per week. They state will get full state pension as he worked after 2016 to April2023.
Yes there is excess of 5237 over the GMPension is offered as lump sum or small annuity of 305 per year with no increases . The GMP which we have to accept is increase 3% per yr. We have had a pension options pack.0 -
The GMP which we have to accept is increase 3% per yr.
Up to 3% per annum depending on CPI?
Arrears immediate annual.Could you clarify this?
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No just 3% on amount pre 88.
Thanks0 -
Sorry post 880
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