Deferred pension with annual CPI increases - any reason not to take now?

DRS1

Marcon said:

DRS1 said:

She is a deferred pensioner.  If she has a GMP isn't someone going to come along soon and say she has no choice but to take the pension (or at least the GMP element) at 60?

No. Very few schemes include any such provision - and even if they do, it's hard to see how it could be enforced if the member doesn't provide the necessary bank details etc to put the pension into payment.

Indeed - an unusual scenario but see

Can I be forced to take my Pension — MoneySavingExpert Forum

I believe keeping bank details quiet is the way the OP on that thread is going to go.

itm2

xylophone said:

Was your wife a member of the scheme between 6.4.78 and 5.4. 97?

If so, her statement of benefits on leaving service should show pre 88 GMP/post 88 GMP and excess.

What is shown in the scheme guide on increase in payment of  revalued GMP  for female post age 60?

Yes she was a member at that time (she left before 1997). We had this from BP last month regarding GMP conversion, which I didn't fully understand TBH!

Albermarle

The Retirement Options document also confirmed that a Tax-free cash sum of £14,196 was available, which equates to roughly 25% of the transfer value (£56,700).

Transfer values move around quite a lot so at another time that £14K could have been a different %. They were much higher three years ago.

 Our instinct is to take the full 25% TFLS and pension from May, rather than deferring or transferring out (e.g. into a flexible drawdown scheme).

In fact transferring out of a DB scheme to a DC scheme is fraught with difficulties, expensive and normally not the best option for most people. Many threads on this forum about it.

xylophone

https://gmp.pensionline.bp.com/media/Pensioner BP Section –%20consultation%20booklet%20(GMP%20has%20been%20rectified).pdf

https://gmp.pensionline.bp.com/media/BP consultation response.pdf

https://gmp.pensionline.bp.com/media/BP deferred (Burmah Castrol) diagram.pdf

LHW99

You still have the option to put that TFLS into an ISA

Or presumably pay some back into a current workplace pension, Sipp or PP and get the tax relief (equal to ~6.25% instantly at the moment for a basic rate taxpayer).