Pension Quandry
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taurusgb
Posts: 909 Forumite
Firstly please understand that everytime I try and understand pensions I feel as though someone has put a hand inside my head and scrambled my brain!
Now for the facts.....I am almost 49 years old, was in a non-contributory final salary scheme for about 3 to 4 years in the late 1980's. In 1990 I left work to have a baby, have stayed home since bringing up my children and now work only part time. I have no other pension other than the above, and am not likely to start one as I have other family commitments than my children and am unlikely to be able to contribute to retirement savings in the foreseeable future.
Last year I asked for a valuation of the above pension and was given a transfer value (which they said was the same as a valuation?!?)This was £6343.21 made up of Guaranteed minimum pension amount of £1440.79 plus Value of non- Guaranteed minimum pension up to 1997 of £4902.42. Then it says the value of benefits arising from contracted out service from 6 April 1997 were £nil.
So, I know you're not allowed to cash in a pension, but I can see this being worth virtually nothing when I reach retirement age of 65. I have been told that it is too small a sum to use as a starter for another pension that I will not be able to add to, I'm scared that the company holding my current pension will go out of business ( car manufacturing components company who have been going down the drain since Rover closed)...So do I have any options at all please?
Thanks to anyone who may be able to help!
Now for the facts.....I am almost 49 years old, was in a non-contributory final salary scheme for about 3 to 4 years in the late 1980's. In 1990 I left work to have a baby, have stayed home since bringing up my children and now work only part time. I have no other pension other than the above, and am not likely to start one as I have other family commitments than my children and am unlikely to be able to contribute to retirement savings in the foreseeable future.
Last year I asked for a valuation of the above pension and was given a transfer value (which they said was the same as a valuation?!?)This was £6343.21 made up of Guaranteed minimum pension amount of £1440.79 plus Value of non- Guaranteed minimum pension up to 1997 of £4902.42. Then it says the value of benefits arising from contracted out service from 6 April 1997 were £nil.
So, I know you're not allowed to cash in a pension, but I can see this being worth virtually nothing when I reach retirement age of 65. I have been told that it is too small a sum to use as a starter for another pension that I will not be able to add to, I'm scared that the company holding my current pension will go out of business ( car manufacturing components company who have been going down the drain since Rover closed)...So do I have any options at all please?
Thanks to anyone who may be able to help!
People Say that life's the thing - but I prefer reading 
The difference between a misfortune and a calamity is this: If Gladstone fell jnto the Thames it would be a misfortune. But if someone dragged him out again, that would be a calamity - Benjamin Disreali
The difference between a misfortune and a calamity is this: If Gladstone fell jnto the Thames it would be a misfortune. But if someone dragged him out again, that would be a calamity - Benjamin Disreali
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Comments
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If the company goes belly up, your pension should come under the umbrella of the new Pensions Protection Fund, and will thus be protected.
It certainly wouldn't be worth moving it. Do you know how much it will be worth as an annual pension, as opposed to a transfer value?, If not, suggest you check. Usually transfers from F/S schemes are very poor value.
By the way have you looked at your entitlement to the state pension(s)? If you stay at home looking after kids you are entitled to "Home Responsibilities Protection" credits.
Apply for a forecast here
And tell all your women friends to do the same, the state pension is a bargain, it would costs a woman 100k to buy an annuity on the open market fro the same amount. You can backdate missed payments for at least 6 years, maybe more, and you should ask if this is worthwhile. The new arrangement for the second state pension (S2P) are very beneficial for most women.
Worth checking your husband's forecast as well and getting them to explain what you will be entitled to on his contributions, if appropriate.
Trying to keep it simple...0
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