I've had an offer for my pension
Discussion
From 1986-88 I was in a company pension scheme. Towards the end of that time the SERPS thing came in and we had the option to stay put, or to have our money back. I chose the latter, got about £400 back (which seemed to be about the same as I'd paid in), and was perfectly happy. Case closed as far as I was concerned.
Not so. About 10 years ago I got a letter out of the blue from Bayer Pensions telling me I had some money with them and it would pay me about £200 a year at 65. I guessed the fund was worth £5,000 (not bad growth starting from the dust in the till!). Bayer then passed the fund to Broadstone and I approached them to see if I could get the fund paid to me as a lump sum.
I've just had a letter from Broadstone headed 'Bayer Group Pension Plan - BCSPF Section' and they're offering me £6,967 (25% of which is tax free). A nice windfall, where do I sign?
However when discussing it with a friend of mine who used to work in the industry, he said they're doing it to reduce their future liability - and that makes me think that if I leave it in longer the payout should be higher.
What does the panel think? Get the money now and reinvest it somewhere else, or leave it to cook with Broadstone?
Not so. About 10 years ago I got a letter out of the blue from Bayer Pensions telling me I had some money with them and it would pay me about £200 a year at 65. I guessed the fund was worth £5,000 (not bad growth starting from the dust in the till!). Bayer then passed the fund to Broadstone and I approached them to see if I could get the fund paid to me as a lump sum.
I've just had a letter from Broadstone headed 'Bayer Group Pension Plan - BCSPF Section' and they're offering me £6,967 (25% of which is tax free). A nice windfall, where do I sign?
However when discussing it with a friend of mine who used to work in the industry, he said they're doing it to reduce their future liability - and that makes me think that if I leave it in longer the payout should be higher.
What does the panel think? Get the money now and reinvest it somewhere else, or leave it to cook with Broadstone?
Yes. The letter states 'When you left service in 1988 the GMP amounted to £89.96 per annum and this will be increased from your date of leaving to age 65 in line with inflation up to a maximum of 5% each year'.
NB: I found a note saying it was £285pa in 2014 so it'll be £300+ now, but still minuscule.
NB: I found a note saying it was £285pa in 2014 so it'll be £300+ now, but still minuscule.
Thanks for the ideas. I could reduce my income to bring me far enough under the tax threshold to get the tax back.
The real gist behind my question though, was that if they are trying to reduce liabilities and 'pay me off' early, will I get a better offer (excluding the index-linking part) in the future? If it's just index-linking I'd be better off investing it elsewhere.
The real gist behind my question though, was that if they are trying to reduce liabilities and 'pay me off' early, will I get a better offer (excluding the index-linking part) in the future? If it's just index-linking I'd be better off investing it elsewhere.
Edited by Simpo Two on Wednesday 23 June 17:26
I have a similar issue with my wife's pensions. But in her case the incomes are about £200 - £300 per month or funds values of £65k and £85k respectively.
Trouble is that you need to take "independent" advice about transferring out and no-body wants to take on the liability that goes with such advice, so they all advise to to leave it where it is. I'd rather transfer the money into a SIPP and continue to invest it. Need to work out how to achieve that......
Trouble is that you need to take "independent" advice about transferring out and no-body wants to take on the liability that goes with such advice, so they all advise to to leave it where it is. I'd rather transfer the money into a SIPP and continue to invest it. Need to work out how to achieve that......
rlg43p said:
I have a similar issue with my wife's pensions. But in her case the incomes are about £200 - £300 per month or funds values of £65k and £85k respectively.
Trouble is that you need to take "independent" advice about transferring out and no-body wants to take on the liability that goes with such advice, so they all advise to to leave it where it is. I'd rather transfer the money into a SIPP and continue to invest it. Need to work out how to achieve that......
Approximately £6k pa of pension income is quite different to the OP’s situation. If those are CETVs, then they’re not very attractive.Trouble is that you need to take "independent" advice about transferring out and no-body wants to take on the liability that goes with such advice, so they all advise to to leave it where it is. I'd rather transfer the money into a SIPP and continue to invest it. Need to work out how to achieve that......
CarlosFandango11 said:
rlg43p said:
I have a similar issue with my wife's pensions. But in her case the incomes are about £200 - £300 per month or funds values of £65k and £85k respectively.
Trouble is that you need to take "independent" advice about transferring out and no-body wants to take on the liability that goes with such advice, so they all advise to to leave it where it is. I'd rather transfer the money into a SIPP and continue to invest it. Need to work out how to achieve that......
Approximately £6k pa of pension income is quite different to the OP’s situation. If those are CETVs, then they’re not very attractive.Trouble is that you need to take "independent" advice about transferring out and no-body wants to take on the liability that goes with such advice, so they all advise to to leave it where it is. I'd rather transfer the money into a SIPP and continue to invest it. Need to work out how to achieve that......
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