Got some pension figures and I`m confused please can anyone helfp?

dunstonh

It should help although the paperwork where you were given the figures should state the assumptions used. Lack of indexation would be something I would look be looking out for. i.e. is the increase only because of the penalty for early retirement being reduced/removed rather than you leaving salary being increased with the usual annual increase.

katies_mum

Hi,

I have read the notes again that came with the forcasts and they don`t say anything about how figures worked out.

katies_mum

Hi

I contacted the firm dealing with the pension quotes last week asking for a breakdown of the figures I put ealier.. ok they said.. this is what I have been sent - its as clear as mud to me.

""I can confirm that the Early Retirement figures quoted are calculated using a program designed and tested by the Fund Actuary. Although I am unable to provide you with a full breakdown of the calculation, I can provide you with some basic information regarding the assumptions that are used in determining the pension payable at a particular date.

The pension figures are derived by first projecting your deferred pension at date of leaving, £4129.62 pa to your chosen retirement dates, then calculating an immediate pension of equivalent actuarial value. An early retirement reduction is then applied which broadly equates to 6% per annum. The reduction applied as a result of loss of interest to the fund alone is around 4% for each year of early payment. Further actuarial fators are also taken into account such as mortality rates, which can be seen to affect the reduction by up to a further 2%.

I trust this information is of assistance to you, however, should you still require further information I will establish if the Pensions Department will approach the find Actuary for this information. However, historocally the Actuary has been reluctant to provide such information and I would like to take this opportunity to make you aware that there will be a charge if this information is provided""

Clear as mud...... don`t suppose it helps does it? Thanks x

katies_mum

Hi,

Thanks. I`ve just come off the phone with them and asked for the scheme booklet which they have promised me for the last 2 weeks, and also figures should I die before claiming the pension!

Can you tell me how I find an advisor who deals in definded benefit schemes?
its mind boggling.

katies_mum

After a vistit from my accountant who specialises in pensions I have decided to take the pension from September, all the forms have been sent back. Many thanks for all the advice and information you have given me.

Can`t beleive I`m nearly a `pensioner`!!