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

xylophone

 seemed to not attempt to contact her

It was her responsibility to contact the Scheme at Scheme Pension Age. Was she given a Statement of  Deferred Benefits on leaving, and a letter confirming  acceptance of resignation,  instructing her to claim her pension at normal scheme pension age to advise the Fund  of any change of address?

I can recall people I knew who left a DB Scheme in the eighties being given just such a letter.

xylophone

the pension has fixed growth of 5% regardless of inflation....etc etc.

which is a bonus if it really is the case that it escalates in payment by a fixed 5% regardless of inflation and including the pre 88 GMP - for a private  scheme to undertake to escalate pre 88 GMP in payment when not obliged to do so is unusual.

scoobyjones1

xylophone said:

 seemed to not attempt to contact her

It was her responsibility to contact the Scheme at Scheme Pension Age. Was she given a Statement of  Deferred Benefits on leaving, and a letter confirming  acceptance of resignation,  instructing her to claim her pension at normal scheme pension age to advise the Fund  of any change of address?

I can recall people I knew who left a DB Scheme in the eighties being given just such a letter.

she was given none of that, no. She DID contact the scheme before pension age, yes. Her company was taken over, she moved on and worked abroad. I can't remember what happened when I was 22-24 xylo, can you? 

scoobyjones1

xylophone said:

the pension has fixed growth of 5% regardless of inflation....etc etc.

which is a bonus if it really is the case that it escalates in payment by a fixed 5% regardless of inflation and including the pre 88 GMP - for a private  scheme to undertake to escalate pre 88 GMP in payment when not obliged to do so is unusual.

5% increase is not good with inflation of 9% as it was recently. And I have said, zero death benefit because she was a single woman in the 1980s. That would not be allowed today. I am fed up with the argument. It's a pointless one. It's her wish to leave and she is being prohibited by ridiculous fees for something she neither wants or needs. Thanks for your help xylo but let's leave it there eh?

Cus

scoobyjones1 said:

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...

Was easy in 2017. Positive recommendation was straightforward, and it cost me just under 1% of the total. Different times...

scoobyjones1

Cus said:

scoobyjones1 said:

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...

Was easy in 2017. Positive recommendation was straightforward, and it cost me just under 1% of the total. Different times...

Indeed, She has been quoted between 5-12 % and with no clue as to the outcome. You did well, it's extremely difficult now.

najan49

scoobyjones1 said:

xylophone said:

the pension has fixed growth of 5% regardless of inflation....etc etc.

which is a bonus if it really is the case that it escalates in payment by a fixed 5% regardless of inflation and including the pre 88 GMP - for a private  scheme to undertake to escalate pre 88 GMP in payment when not obliged to do so is unusual.

5% increase is not good with inflation of 9% as it was recently. And I have said, zero death benefit because she was a single woman in the 1980s. That would not be allowed today. I am fed up with the argument. It's a pointless one. It's her wish to leave and she is being prohibited by ridiculous fees for something she neither wants or needs. Thanks for your help xylo but let's leave it there eh?

But you ignoring the many years where inflation is below 5% where this pension would see above inflation increases. A fixed 5% increase is far better than a pension with a CPI-up-to-5% increase, for instance. At least your wife’s scheme has a chance of making up for the recent inflation spike over time.

xylophone

I was 22-24 xylo, can you? 

Well, yes, I can as it happens. First job post college and DB (contributory) pension scheme (although I didn't think about it much - it was there and everybody joined up!

I then moved to another job with a non contributory pension scheme and had a letter asking if I wanted to transfer in any previous pension.

I replied in the affirmative and that was that!

scoobyjones1

najan49 said:

scoobyjones1 said:

xylophone said:

the pension has fixed growth of 5% regardless of inflation....etc etc.

which is a bonus if it really is the case that it escalates in payment by a fixed 5% regardless of inflation and including the pre 88 GMP - for a private  scheme to undertake to escalate pre 88 GMP in payment when not obliged to do so is unusual.

5% increase is not good with inflation of 9% as it was recently. And I have said, zero death benefit because she was a single woman in the 1980s. That would not be allowed today. I am fed up with the argument. It's a pointless one. It's her wish to leave and she is being prohibited by ridiculous fees for something she neither wants or needs. Thanks for your help xylo but let's leave it there eh?

But you ignoring the many years where inflation is below 5% where this pension would see above inflation increases. A fixed 5% increase is far better than a pension with a CPI-up-to-5% increase, for instance. At least your wife’s scheme has a chance of making up for the recent inflation spike over time.

Of course but you are missing the point. This is not her main pension. It's 2k a year, 3% or 5% makes little difference. She would like the £60k now, even just as cash that is making 5% at the moment...likely to fall of course but she could invest some and whatever she does she will have something to leave at death, most probably more than 60k even if she withdraws 2k a year. Her DB pension leaves zero to pass on, or to invest, or to use in emergencies. It's not the same as someone who is dependent on this as their only pension. This was a bonus. You should be allowed to do what you like with a bonus!

scoobyjones1

xylophone said:

I was 22-24 xylo, can you? 

Well, yes, I can as it happens. First job post college and DB (contributory) pension scheme (although I didn't think about it much - it was there and everybody joined up!

I then moved to another job with a non contributory pension scheme and had a letter asking if I wanted to transfer in any previous pension.

I replied in the affirmative and that was that!

well congrats on the sharp memory. How old are you now if you don't mind me asking? My memory is going...and a lot has happened since those days!