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    • bored_accountant
    • By bored_accountant 10th Sep 18, 11:44 AM
    • 3Posts
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    bored_accountant
    gmp pension query
    • #1
    • 10th Sep 18, 11:44 AM
    gmp pension query 10th Sep 18 at 11:44 AM
    First time poster- please allow for my ignorance of pensions. Please could somebody help me understand how a small pension that I contributed to, many years ago, works in practice. It only forms a small part of my retirement planning but confuses me greatly.

    The scheme is run by a well-known high st retailer (not sure if I am allowed to name them)

    I contributed for 3 full years from April 1989- March 2002 (my ages 21-24yrs)
    Salary upon leaving 14000 pa
    Deferred pension 690, made up of 155 gmp and 535 excess
    Excess is revalued annually at lower of RPI or 5%
    Scheme is 1/60 of final salary per year

    I am hoping to retire at 60 (10 years time, I am 50 now) I am male.

    I have been in contact with the pensions department of my ex employer, and they have provided me with an estimate at age 60 of 1389 per annum.

    Scheme retirement age is 65, with no reduction for taking pension at 60

    I am a bit confused by this as I thought my gmp was increasing at 7.5% per annum, and the quoted figure is also less than what I thought the revalued excess would be.

    I have phoned them, and they say they do not calculate gmp until retirement age of 65.

    Question- at 60 do I just get the revalued excess, them at 65 get the revalued gmp as well?

    Any information that would increase my understanding of this would be appreciated.
Page 1
    • marlot
    • By marlot 10th Sep 18, 12:04 PM
    • 3,867 Posts
    • 2,998 Thanks
    marlot
    • #2
    • 10th Sep 18, 12:04 PM
    • #2
    • 10th Sep 18, 12:04 PM
    ...I contributed for 3 full years from April 1989- March 2002 (my ages 21-24yrs)....
    Originally posted by bored_accountant
    I make that 13 years - I assume one of the dates is a typo?
    • bored_accountant
    • By bored_accountant 10th Sep 18, 12:21 PM
    • 3 Posts
    • 0 Thanks
    bored_accountant
    • #3
    • 10th Sep 18, 12:21 PM
    • #3
    • 10th Sep 18, 12:21 PM
    my apologies, well spotted, April 1989- March 1992, 3yrs
    • xylophone
    • By xylophone 10th Sep 18, 12:57 PM
    • 29,501 Posts
    • 17,970 Thanks
    xylophone
    • #4
    • 10th Sep 18, 12:57 PM
    • #4
    • 10th Sep 18, 12:57 PM
    You are male - your GMP age is therefore 65.

    The Scheme must pay you a pension of at least your revalued GMP at GMP age.

    You need to consult your scheme rules as to what happens if you choose to take your Scheme Pension before Scheme Pension Age.

    It would appear that (unusually) your scheme does not impose an actuarial reduction in these circumstances.

    However, it may be that you will receive only your unrevalued GMP plus revalued excess if you take your pension at age 60 with the possibility of a step up at GMP age.

    See this thread but this is Barclays - schemes have different rules and you need to find out what yours are.

    https://forums.moneysavingexpert.com/showthread.php?t=5865725

    Have you obtained a new state pension statement?

    https://www.gov.uk/check-state-pension
    Last edited by xylophone; 10-09-2018 at 3:09 PM. Reason: typo
    • Dox
    • By Dox 10th Sep 18, 1:30 PM
    • 1,374 Posts
    • 1,028 Thanks
    Dox
    • #5
    • 10th Sep 18, 1:30 PM
    • #5
    • 10th Sep 18, 1:30 PM

    The scheme is run by a well-known high st retailer (not sure if I am allowed to name them)
    Originally posted by bored_accountant
    Of course you can - you aren't criticising them, just asking for info (and someone here may be familiar with the scheme).
    • bored_accountant
    • By bored_accountant 10th Sep 18, 9:46 PM
    • 3 Posts
    • 0 Thanks
    bored_accountant
    • #6
    • 10th Sep 18, 9:46 PM
    • #6
    • 10th Sep 18, 9:46 PM
    thanks for the link Xylophone, i'll get back in touch with the scheme administrators to check on their policy.

    The pension scheme was originally with Ward White until they got bought out by Boots in 1990, and is now under the Boots scheme umbrella.

    I have a government pension forecast, I just need fivr more years on NI credits to get full state pension
    • xylophone
    • By xylophone 11th Sep 18, 9:47 AM
    • 29,501 Posts
    • 17,970 Thanks
    xylophone
    • #7
    • 11th Sep 18, 9:47 AM
    • #7
    • 11th Sep 18, 9:47 AM
    See also

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