Question about my fathers Pension.

love2learn

Hi,

My dad had an employees pension with MFI the furniture group. He was made redundant from MFI in 1994, but had been paying into the pension for around 20 years. It was with a company called Galiform, has anyone heard of them... and are they a safe place to keep the money? Reason being he will be retiring in around 4 years, and I'd like him to contribute to it a bit more to top it up a little until then. I'd be happy if anyone could help, thanks!

chesky369

First of all, get your dad to find the paperwork on the scheme. Is he getting regular (annual) reports? Is it a final salary scheme?

love2learn

chesky369 wrote: »

First of all, get your dad to find the paperwork on the scheme. Is he getting regular (annual) reports? Is it a final salary scheme?

He hasn't been getting anual reports for some reason I think it maybe due to us moving address. Although he's got in touch with them, and they are sending him out a transfer value encase he wants to move it. They said that his pension is split into 2 sections a contracted out section... which is his state pension contribution were contracted out to increase at a guaranteed 7%. And the other sections is in line with the Retail Price Index which they said can be up to 5%. They said that although he hasn't been contributing to it since he was made redundant, it would still have grown with the retail price index. It's aparently mnpa who run the pension for Galiform.

EdInvestor

Sounds like it's a final salary scheme.He should ask for a forecast of what he will get at retirement.He shouldn't move or interfere with this scheme.He can't top it up.

Later in the year (currently the computer is down for updating)you might like to get him to check his state pension entitlement at https://www.thepensionservice.gov.uk.

If he was contracted back into S2P/ SERPS after he left MFI he may be in line for a somewhat larger state pension than you think.

Until all pension info has been collected and analysed, better to make any additional savings in the cash and/or investment ISA ( 3,600 a year each as of this April) rather than the pension, as it may be more beneficial from the tax point of view.