Can I be forced to take my Pension

BetsyRose

I've been told I need to take a discounted pension at 60 rather 62 due to me not being in employment and because the pension contracted out for a while, and being a women apparently. My GMP element is tiny compared to the loss I will incur.  I have full state pension contributions too.   I apparently must take the 'benefit', but it's actually very bad for me financially.

Is there anything I can do to prevent this. Can I refuse it, register as a self employed dog walker, re-assign my gender.  The last is a bit extreme, but it's difficult to understand that is meant by being in employment.  I do not want to take my pension early,

flaneurs_lobster

Been told by whom?

tacpot12

You can't be forced to take a pension by the DWP. They might reduce your benefits if you don't take a pension once you reach your state retirement age, but there is nothing they can do before that. 

Juno_Moneta

What is your situation Betsy?
Have you just been made redundant or chosen to retire for example?

Usually discounted pensions are linked to some kind of choice - eg the retiree deciding to retire earlier with reduced benefits.

I would start logging all communications too and eg use email or letter rather than phone calls so you have some proof what is being decided, by whom and for what reason.

If you need independent help try Citizens Advice / Pension Wise.
https://www.citizensadvice.org.uk/about-us/information/pension-wise
https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

Good luck!

p00hsticks

tacpot12 said:

You can't be forced to take a pension by the DWP. They might reduce your benefits if you don't take a pension once you reach your state retirement age, but there is nothing they can do before that. 

What about a private pension where the Normal Retirement Age is earlier than State Retirement Age ? 

BetsyRose

Is a private Final Salary Scheme with a company I worked with years ago. It is managed by Willis Towers Watson. It has an NRA of 62.   I was made redundant from my recent employers last year and have used the redundancy and saving to live of since then.    I was told that the must pay out the pension at 60 if I'm not employed.

molerat

BetsyRose said:

Is a private Final Salary Scheme with a company I worked with years ago. It is managed by Willis Towers Watson. It has an NRA of 62.   I was made redundant from my recent employers last year and have used the redundancy and saving to live of since then.    I was told that the must pay out the pension at 60 if I'm not employed.

By who ?

With some pensions if you do not take them at the NRA then you may lose that money. NRA of 62 seems a weird one.

tacpot12

p00hsticks said:

tacpot12 said:

You can't be forced to take a pension by the DWP. They might reduce your benefits if you don't take a pension once you reach your state retirement age, but there is nothing they can do before that. 

What about a private pension where the Normal Retirement Age is earlier than State Retirement Age ? 

That is down to the scheme rules. Some schemes might have a take it or lose it choice, which means that taking it is more or less obligatory. More schemes will allow you to defer indefinitely, but might not uprate the defered pension for inflation would also be a bad outcome. 

Ultimately, if this is a private/occupational pension scheme, it will be the scheme rules that might force the member to take the pension or not.  The employer might also be in a position to force an employee to take ill-health retirement, but some negotiation should be possible if the employee is going to be worse off in retirement. There may or may not be much room or willingness for the employer to negotiate on this. 

BetsyRose

Tower Willis have sent me a letter,  their view is that the are obliged to pay be a Guaranteed Minimum Pension (GMP) as they contracted out while I was employed. This element is very small though, but is not separate from the main pension.   There was a rule that it had to be paid out to women at 60 and men at 65 if not in employment, but this may have been superseded by a vague ruling that pension schemes need to equalise their rules.  It's all very vague as I don't know what constituents being employed.  Could I start a small business for example, or do I have to find full employment again at very short notice. 

sheramber

Or does it mean in employment with the same employer  since it is a final salary scheme?

BetsyRose

It is a final salary scheme,  it's all very unclear as you say, suddenly you pension plans are torpedoed.