Fixed Paid Up Pension
Discussion
Can anyone explain what's meant by 'Fixed Paid Up Pension'?
I've got a deferred pension from a previous employer, and it includes a 'Fixed Paid Up Pension' payable at age 65, reduced by 9% per year if taken earlier. This relates to a couple of inward transfers I made around twenty years ago.
The rest of my pension is reduced by 4% per year, and subject to various levels of indexation (mostly capped CPI).
I understood that as meaning the fixed part would not be indexed at all, either pre- or post-retirement, but I've just received an illustration which is quite a bit more than I expected. The only way I can come close to their figure is by applying the same CPI indexing to the fixed part.
I've queried their calculations and I suspect they've made an error - I only requested the illustration to make sure I'd got my own sums right, so it's not the end of the world!
I can only find one reference to this term in the whole of the internet, and it's a thread on Moneysavingexpert of all places.
I've got a deferred pension from a previous employer, and it includes a 'Fixed Paid Up Pension' payable at age 65, reduced by 9% per year if taken earlier. This relates to a couple of inward transfers I made around twenty years ago.
The rest of my pension is reduced by 4% per year, and subject to various levels of indexation (mostly capped CPI).
I understood that as meaning the fixed part would not be indexed at all, either pre- or post-retirement, but I've just received an illustration which is quite a bit more than I expected. The only way I can come close to their figure is by applying the same CPI indexing to the fixed part.
I've queried their calculations and I suspect they've made an error - I only requested the illustration to make sure I'd got my own sums right, so it's not the end of the world!
I can only find one reference to this term in the whole of the internet, and it's a thread on Moneysavingexpert of all places.
Normally means the amount of pension per year is a fixed amount quoted at the scheme's normal retirement date. So the amount doesn't increase before retirement. It might increase once in payment.
My bet is the administrator have incorrectly applied increases to the figure before retirement.
My bet is the administrator have incorrectly applied increases to the figure before retirement.
Thanks both - yes it's the 'Fixed' bit that doesn't make sense.
I'd love their calculations to be correct but even if they're not it's still not a bad deal and combined with ten years of Civil Service pension means retirement at 60 or 61 is a distinct possibility - I know how fortunate I am to be even considering it despite a life spent planning no further than the next Payday!
I'd love their calculations to be correct but even if they're not it's still not a bad deal and combined with ten years of Civil Service pension means retirement at 60 or 61 is a distinct possibility - I know how fortunate I am to be even considering it despite a life spent planning no further than the next Payday!
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