Pension Buy Out timeline

Moonwolf

I’ve just been told that one of my deferred DB pensions is being wound up with a full buy out.

This doesn’t seem to be particularly bad news.

However, the timeline has the handover to the insurance company happening around the same time as my 60th birthday when the pension comes into payment.

Should I be worried about falling through the gaps and is there anything I can do to protect myself.

I’m not worried about not getting the pension, just uncomfortable delays.

Thanks

Moonwolf.

Marcon

Moonwolf said:

I’ve just been told that one of my deferred DB pensions is being wound up with a full buy out.

This doesn’t seem to be particularly bad news.

However, the timeline has the handover to the insurance company happening around the same time as my 60th birthday when the pension comes into payment.

Should I be worried about falling through the gaps and is there anything I can do to protect myself.

I’m not worried about not getting the pension, just uncomfortable delays.

Thanks

Moonwolf.

It's good news. Once a full buy out has been accomplished, you have FSCS protection of 100%, because the pension is a 'long term contract of insurance' - so no need to worry about the employer failing, underfunding or anything else.

There's no reason to believe there will be gaps to fall through if your trustees are on the ball, but that bland sentiment isn't much comfort. Ask them for reassurance, which will be much more meaningful than a vague statement from someone on the internet.

Buy outs don't always happen on the projected timescale, so you may well find you've hit 60 before your scheme gets to that point!