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    • Stevesam64
    • By Stevesam64 9th Aug 18, 7:43 AM
    • 9Posts
    • 1Thanks
    Stevesam64
    Deferred pension
    • #1
    • 9th Aug 18, 7:43 AM
    Deferred pension 9th Aug 18 at 7:43 AM
    Hello,
    Hope that someone can just give me some advice please.
    I will be 55 soon and I have a Xerox final salary pension but they say I don't have enough pension to meet the GMP.
    I joined the pension in 1991 and left in 2002.
    Deferred pension when I left was 3526.80.
    Pension in 2017 was 5912.56 so that's about a 70% increase in 16 years.
    The transfer value is 101960.
    Will it be better just to keep the pension in the Xerox scheme and just wait until I can receive it, and do you know how many more years I will have to wait?.
    Or do I just take the pot and buy a annuity with it.
    If I do go down the second route I do know that I will need to get some finance advice.

    Thanks for any help.
    Steve.
Page 2
    • Stevesam64
    • By Stevesam64 9th Aug 18, 3:41 PM
    • 9 Posts
    • 1 Thanks
    Stevesam64
    Left 31/01/2002
    When I left It say deferred pension payable from normal benefit age 3526
    And on the first April 2017 it says 5912
    • woolly_wombat
    • By woolly_wombat 9th Aug 18, 4:04 PM
    • 604 Posts
    • 415 Thanks
    woolly_wombat
    Will you actually need to get your hands on this pension fund when you reach 55?

    If not then you are likely to be better off in the long term if you can afford to leave it where it is until 65.

    If you are still working then you could whack as much as you can into a personal pension, then draw down from that to cover the gap between stopping work and taking your old pension at 65 and your State Pension at the age you become eligible for that.
    • xylophone
    • By xylophone 9th Aug 18, 5:03 PM
    • 27,680 Posts
    • 16,635 Thanks
    xylophone
    Do you have a certificate of deferred benefits which show your GMP and excess over GMP at date of leaving service?

    Do you have a scheme booklet which explains how your pension revalues in deferment?

    Does your Scheme use "Fixed Rate" revaluation of GMP in deferment?

    See

    https://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/

    https://www.barnett-waddingham.co.uk/comment-insight/blog/2012/07/24/revaluation-for-early-leavers/

    Your Scheme must pay you a pension at least equal to your revalued GMP at GMP age.

    You have asked to take your benefits ten years early.

    This would involve an actuarial reduction to your benefits.

    These benefits would then be index linked in payment.

    Your scheme actuary has calculated that at age 65 your pension in payment would not have reached an amount equal to your revalued GMP.

    Therefore you have been refused early payment.

    It might be possible to take benefits before age 65 at some point in the future.
    • xylophone
    • By xylophone 9th Aug 18, 5:12 PM
    • 27,680 Posts
    • 16,635 Thanks
    xylophone
    Have you obtained a new state pension forecast?

    https://www.gov.uk/check-state-pension
    • Stevesam64
    • By Stevesam64 9th Aug 18, 7:47 PM
    • 9 Posts
    • 1 Thanks
    Stevesam64
    Not yet, I'm waiting for my new one to turn up
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