Barclays Bank - 1964 Final Salary Pension Scheme - Help!

glitzy

WTW left a message today & guess what, the recent quote was incorrect 🤦‍♀️ They are sending a correct quote but it’s exactly the same as the quote I received September 2022!!

My next question is understanding the pension payment, either option do I get it until I die?

JoeCrystal

glitzy said:

WTW left a message today & guess what, the recent quote was incorrect 🤦‍♀️ They are sending a correct quote but it’s exactly the same as the quote I received September 2022!!

My next question is understanding the pension payment, either option do I get it until I die?

Umm... Yes??? Is that the whole point of the pension!!!??? 😀 Pay you a pension until you die....

glitzy

Do you think I would be mad to take option 1 & put the 19k in a cash free isa. I’m a bit worried if I leave it, my next quote in 5 years time it might go down again, as it’s gone down 31k since 2019!!

xylophone

I’m a bit worried if I leave it, my next quote in 5 years time it might go down again, as it’s gone down 31k since 2019!!

Your pension has NOT gone down.

The CETV has reduced substantially between 2019 and now for the reasons explained in the link in 

https://forums.moneysavingexpert.com/discussion/comment/80937075/#Comment_80937075

It is not impossible that the Commutation Factor could change if you chose to leave your pension in deferment.


From what you have said, it would appear that your options for taking your pension now are likely to be as here

https://forums.moneysavingexpert.com/discussion/comment/80942632/#Comment_80942632


Thus you would choose between  (a) TAX FREE LUMP SUM of   £19, 627.41  and taxable pension of  around £245 a month

and  (b) no lump sum and taxable pension of  around £307 a month.


With regard to pension increase in payment,  you need to consider the effect of your GMP.

As previously explained, the Scheme has no obligation to pay any increase at all on GMP accrued between  6/4/1978 and 5/4/1988.

It pays up to 5% on the excess over GMP.

All your GMP is pre 88.

In the case of option 1, approx 80% of your monthly pension would see no annual increase.

In the case of option 2,  approx 63% of your pension would see no annual increase.


I think that if I were offered these options, my inclination would be to take the lump sum and reduced pension.

I would then ISA the lump sum.



However, I am not you. You need to consider all your circumstances and choose what best suits  your objectives.

What exactly does your state pension forecast show?

Do you have other pensions?

Are you still working?

glitzy

Hi xylophone, I get the full forecast for my state pension. I have a few smaller pensions with Aviva & Aegon. I am still working & plan to work until I get my state pension as we like going on holiday. I am favouring the lump sum as there’s not much difference between the 2 options- TY for all your help it has been very informative 😍

The_Realist

Hi All. Original poster and an update. My mums found a letter from June 1987 from Barclays:



It sounds to me like mum was entitled an annual payment of 605.37 from November 2023 but WTW don't agree.

Any ideas on what we can do apart from contsxt the ombudsman? There's no way I can be misinterpreting this? Could they have subsequently paid my mum an amount, although she has no recollection of this.

Thanks again

Silvertabby

The_Realist said:

Hi All. Original poster and an update. My mums found a letter from June 1987 from Barclays:



It sounds to me like mum was entitled an annual payment of 605.37 from November 2023 but WTW don't agree.

Any ideas on what we can do apart from contsxt the ombudsman? There's no way I can be misinterpreting this? Could they have subsequently paid my mum an amount, although she has no recollection of this.

Thanks again

Any chance she transferred these benefits to a later employers pension scheme?  

The_Realist

She isn't aware she has done anything with them so it's all very confusing.

Is there a way of valuing the benefits now from this letter. We know it won't be huge but every little helps!

Dazed_and_C0nfused

The_Realist said:

She isn't aware she has done anything with them so it's all very confusing.

Is there a way of valuing the benefits now from this letter. We know it won't be huge but every little helps!

That scheme will have its own revaluation rules but the BoE inflation calculator shows that £605 in 1987 would need to be £1,717 now to buy the same goods and services.

FIREDreamer

Dazed_and_C0nfused said:

The_Realist said:

She isn't aware she has done anything with them so it's all very confusing.

Is there a way of valuing the benefits now from this letter. We know it won't be huge but every little helps!

That scheme will have its own revaluation rules but the BoE inflation calculator shows that £605 in 1987 would need to be £1,717 now to buy the same goods and services.

Possibly only the post 31/12/1985 service was entitled to revaluation at that time (revaluation for all service didn’t kick in until 01/01/1991 for leavers after that date, unless already provided under scheme rules.