Being forced to use a Financial Advisor to transfer pension to pension.

scoobyjones1

xylophone said:

If your wife chooses to continue to defer post Scheme NRA, how will the pension revalue in continued deferment?

In such circumstances Ii the member retires (takes benefits) more than seven weeks later than their 60th birthday (women) / 65th birthday (men), their accrued GMP must be increased by at least 1/7% for each complete week thereafter.

Have you checked with the administrator?

Do you mean this, xylo?

Deferred Pension at Date of Leaving

Member’s deferred pension due at Normal Retirement Date, values are calculated at statement date
Pre 97 Excess £354.08
Pre 1988 GMP £115.96
Post 1988 GMP £0.00
Total Deferred Pension £470.04

The Admin said if she decides whilst the CETV is still current, ie within the 3 months then they will honour that valuation.
If after that then she will get a new CETV (maybe higher if interest rates are lower then?) and I presume the annual payments may be slightly different.

theoretica

scoobyjones1 said:

she would need to live 30 years, getting £168 a month at first, to get anywhere near the benefit of £60k in her SIPP now.

Does she have a lower than average life expectancy? (a 60 year old woman in the UK has an average life expectancy of 27 years.) A lower (or higher) life expectancy would be something which I would expect an IFA to take into account in a recommendation.

scoobyjones1

theoretica said:

scoobyjones1 said:

she would need to live 30 years, getting £168 a month at first, to get anywhere near the benefit of £60k in her SIPP now.

Does she have a lower than average life expectancy? (a 60 year old woman in the UK has an average life expectancy of 27 years.) A lower (or higher) life expectancy would be something which I would expect an IFA to take into account in a recommendation.

No theoritica. All is normal touch wood...but there is no provision for accidental death ( we very nearly got hit by a bus yesterday) or sudden illness and as there is no death benefit in this particular pension that should be considered, surely?

scoobyjones1

xylophone said:

If your wife chooses to continue to defer post Scheme NRA, how will the pension revalue in continued deferment?

In such circumstances Ii the member retires (takes benefits) more than seven weeks later than their 60th birthday (women) / 65th birthday (men), their accrued GMP must be increased by at least 1/7% for each complete week thereafter.

Have you checked with the administrator?

Ah no, I found it on one of their IFA help links.
If she defers until 61 then it goes up by 1.054
62 by 1.112
63 by 1.174 and so on. The CETV would be re-calculated, she is allowed 2 of those per year.

theoretica

scoobyjones1 said:

theoretica said:

scoobyjones1 said:

she would need to live 30 years, getting £168 a month at first, to get anywhere near the benefit of £60k in her SIPP now.

Does she have a lower than average life expectancy? (a 60 year old woman in the UK has an average life expectancy of 27 years.) A lower (or higher) life expectancy would be something which I would expect an IFA to take into account in a recommendation.

No theoritica. All is normal touch wood...but there is no provision for accidental death ( we very nearly got hit by a bus yesterday) or sudden illness and as there is no death benefit in this particular pension that should be considered, surely?

Both of those will already have been taken into account in calculating the CETV.  Being hit by a bus will, statistically, be included in life expectancy, and average duration of payout, and any payout to a surviving spouse would be included in the calculation of the liability to the pension company.  It matters where your specific case is significantly different from the average calculations used for the CETV. 

scoobyjones1

theoretica said:

scoobyjones1 said:

theoretica said:

scoobyjones1 said:

she would need to live 30 years, getting £168 a month at first, to get anywhere near the benefit of £60k in her SIPP now.

Does she have a lower than average life expectancy? (a 60 year old woman in the UK has an average life expectancy of 27 years.) A lower (or higher) life expectancy would be something which I would expect an IFA to take into account in a recommendation.

No theoritica. All is normal touch wood...but there is no provision for accidental death ( we very nearly got hit by a bus yesterday) or sudden illness and as there is no death benefit in this particular pension that should be considered, surely?

Both of those will already have been taken into account in calculating the CETV.  Being hit by a bus will, statistically, be included in life expectancy, and average duration of payout, and any payout to a surviving spouse would be included in the calculation of the liability to the pension company.  It matters where your specific case is significantly different from the average calculations used for the CETV. 

Thanks for that, I hope you are right there. But the fact remains the same, if she takes the small pension at 2k or 2.3k per year then it would die with her. She is not happy about that, her SIPP she can pass on after death...in 1 year, 2 years or even 27 years. That's what she wants.

xylophone

Do you mean this, xylo?

Deferred Pension at Date of Leaving

Member’s deferred pension due at Normal Retirement Date, values are calculated at statement date
Pre 97 Excess £354.08
Pre 1988 GMP £115.96





Value for Money (VFM) Deferred Pension at Normal Retirement Date

Member’s deferred pension due at Normal Retirement Date
Pre 97 Excess £354.08
Pre 1988 GMP £2,015.52
Post 1988 GMP £0.00
Total Deferred Pension £2,369.60


https://www.barnett-waddingham.co.uk/comment-insight/blog/revaluation-for-early-leavers/


Your wife's GMP  up to age 60 revalued at fixed rate of 8.5%.

The excess over GMP has not revalued in deferment, presumably because there was no statutory/ scheme right to revaluation.

As stated in my previous, if your wife defers the pension for at least seven beyond age 60, there is a statutory right for the GMP to increase by 1/7%  for each succeeding week.

Don't forget to check whether your understanding of increase in payment is correct. If it is, then the Scheme is being very generous because there is no obligation to pay any increase on the revalued pre 88 GMP.

scoobyjones1

xylophone said:

Do you mean this, xylo?

Deferred Pension at Date of Leaving

Member’s deferred pension due at Normal Retirement Date, values are calculated at statement date
Pre 97 Excess £354.08
Pre 1988 GMP £115.96





Value for Money (VFM) Deferred Pension at Normal Retirement Date

Member’s deferred pension due at Normal Retirement Date
Pre 97 Excess £354.08
Pre 1988 GMP £2,015.52
Post 1988 GMP £0.00
Total Deferred Pension £2,369.60


https://www.barnett-waddingham.co.uk/comment-insight/blog/revaluation-for-early-leavers/


Your wife's GMP  up to age 60 revalued at fixed rate of 8.5%.

The excess over GMP has not revalued in deferment, presumably because there was no statutory/ scheme right to revaluation.

As stated in my previous, if your wife defers the pension for at least seven beyond age 60, there is a statutory right for the GMP to increase by 1/7%  for each succeeding week.

Don't forget to check whether your understanding of increase in payment is correct. If it is, then the Scheme is being very generous because there is no obligation to pay any increase on the revalued pre 88 GMP.

Thanks xylo, as per my later post on this, the info is in the links they provided for IFA help :

If she defers until 61 then it goes up by 1.054
62 by 1.112
63 by 1.174 and so on. The CETV would be re-calculated, she is allowed 2 of those per year.

Cus

Apologies if you stated this earlier in the thread, but what were the reasons why your wife and you were unaware of this pension a few years ago?

scoobyjones1

Cus said:

Apologies if you stated this earlier in the thread, but what were the reasons why your wife and you were unaware of this pension a few years ago?

Well it's a long story but this was a job she did back in 1986-88. She did not pay into it at all...only the company did. The company was taken over and she declined to stay on for the new company. She did not even know there WAS a pension....only in her young 20s then with no experience in such things. This year she retired and for various reasons did a pension search and found out about it. She was surprised and happy to find it. I am somewhat bemused as to why the company involved seemed to not attempt to contact her and it would have been beneficial to have known about it sooner, when CETVs were much higher.. but there we go.
Hopefully you can understand now why she wants out of it, to make up for lost time. It was not part of her financial planning and is only a small bonus to her. There is no death benefit at all so she cannot pass it on to kids / grandkids plus the pension has fixed growth of 5% regardless of inflation....etc etc.
Did you have trouble / expense getting yours transferred out, Cus? Seems very difficult now as the rules have changed as per the rest of the thread...