Question for any pension gurus!

DavidNW · 29th March 2010, 15:11

Hello,

I have 2 private pensions that will mature when I reach 65, and one when I reach 60 in January. The first 2 mentioned, send me annual statements telling me how much the pensions will be worth when I get to 65 in terms of 'units' and terms such as 'total fund value'. I have not thought much about these pensions, as they are from employment dating back to the early 70s and the late 80s.

However, the clock is ticking a little faster now, and I have the retirement 'winning post' in sight.

What I would like to know is exactly how much I am going to get per annum? Does 'total fund value', of say, just for an example, £9500, mean this is the annual sum you will receive upon retirement?

Many thanks,

David.

baxlin · 29th March 2010, 15:30

Quote:

Originally Posted by DavidNW

Hello,

I have 2 private pensions that will mature when I reach 65, and one when I reach 60 in January. The first 2 mentioned, send me annual statements telling me how much the pensions will be worth when I get to 65 in terms of 'units' and terms such as 'total fund value'. I have not thought much about these pensions, as they are from employment dating back to the early 70s and the late 80s.

However, the clock is ticking a little faster now, and I have the retirement 'winning post' in sight.

What I would like to know is exactly how much I am going to get per annum? Does 'total fund value', of say, just for an example, £9500, mean this is the annual sum you will receive upon retirement?

Many thanks,

David.

Regretfully no, David. If it's from an insurance company, eg Standard life, and it quotes number of units, price, and total fund value, this is just what it is, and you use the fund to purchase retirement benefits, for instance an Annuity, or other plans, such as Unsecured Pension.

I'd look on

www.unbiased.co.uk

for a local IFA, and ask if they can give you a free half hour or so to explain your options, as these are many and varied. If ex-employer company pensions, then they're different again.............

Malcolm

DavidNW · 29th March 2010, 16:45

Quote:

Originally Posted by baxlin

Regretfully no, David. If it's from an insurance company, eg Standard life, and it quotes number of units, price, and total fund value, this is just what it is, and you use the fund to purchase retirement benefits, for instance an Annuity, or other plans, such as Unsecured Pension.

I'd look on

www.unbiased.co.uk

for a local IFA, and ask if they can give you a free half hour or so to explain your options, as these are many and varied. If ex-employer company pensions, then they're different again.............

Malcolm

Thanks for that, Malcolm. The 3 pension companies are: NPI, Standard Life and Canada Life. I was thinking that these companies would physically payout once the policies mature. So, is this not actually the case? Sorry I don't know much about these things. So, will I probably need to seek the advice of an IFA, before they mature? Yes, they are all ex-employer pensions, by the way.

David.

trebor · 29th March 2010, 18:02

the statements sent out by some companies include an idea of the projected monthly payout from the fund, so if your statements dont tell you this, you can always ask

baxlin · 29th March 2010, 18:15

Quote:

Originally Posted by DavidNW

Thanks for that, Malcolm. The 3 pension companies are: NPI, Standard Life and Canada Life. I was thinking that these companies would physically payout once the policies mature. So, is this not actually the case? Sorry I don't know much about these things. So, will I probably need to seek the advice of an IFA, before they mature? Yes, they are all ex-employer pensions, by the way.

David.

I'd go to an IFA now, (but then I would say that..............) because if they were arranged years ago, the funds chosen then could be under-performing now, and it could be worth re-visiting. It's a pity you're oop norf.

Malcolm

arry · 29th March 2010, 20:07

Get some professional advice on your pensions. Generally any 'fund' that you have built up during your working life is converted to a pension by buying an annuity usually form the company you have the money with.

A small fund will only buy you a very small 'annuity' sometimes hardly worth having. Once you die the 'annuity' dies with you and cannot normally be passed on to others to collect. Therfore the Lump Sum you have saved up is lost forever to the fund holder.

I believe that recent changes in pension law does allow you,in certain circumstances, to get a lump sum payment in place of an annuity especially when the fund that you have built up is quite small.
I seem to remember that the upper limit is about £15000 but don,t quote me on this.

Whatever you do act quickly before it is too late. Money Box Live on Radio4 is great for giving advice on pensions etc and it is worth taking a look at thier pages on the BBC Website.

Hope this helps.

Arry.

justmicky · 29th March 2010, 20:24

Just looking at one of my pension funds, the projected fund value assuming an investment return of 5% each year will be £112,539 at the age of 65 (another 14 years). This will give me a pension each year of £6060.

JohnDotCom · 29th March 2010, 21:57

Quote:

Originally Posted by justmicky

Just looking at one of my pension funds, the projected fund value assuming an investment return of 5% each year will be £112,539 at the age of 65 (another 14 years). This will give me a pension each year of £6060.

Will also stop you getting any Pension Credit, Council Tax Paid, Rent Paid etc.
Governments don't help those that save for a rainy day or their futures.

Zeb · 30th March 2010, 06:55

Quote:

Originally Posted by JohnDotCom

Will also stop you getting any Pension Credit, Council Tax Paid, Rent Paid etc.
Governments don't help those that save for a rainy day or their futures.

Not necessarily...Council tax benefit is paid on a sliding scale according to weekly income. Pension credit is also paid according to total weekly income...if it is below £130 (single) or £198.45 (if you have a partner) a week Pension credit will top it up to this amount.

JohnDotCom · 30th March 2010, 07:19

I was referring to the small pension (£6000PA) + State Pension of member that would stop him claiming as to much income on current scales even.
As many have found if your pension is going to pay less than £20k+ PA generally better off relying on the State system and benefits as many have found,
more so if care etc is ever needed.
Just my own thoughts and sorting Father in Laws recent care problems.

29th March 2010, 15:11	#1
DavidNW Loves to post Rover 75 Club 1.8, 2001, royal blue, owned by im up norf. Join Date: Oct 2009 Location: Clitheroe, Lancashire. Posts: 457 Thanks: 26 Thanked 5 Times in 5 Posts	Question for any pension gurus! Hello, I have 2 private pensions that will mature when I reach 65, and one when I reach 60 in January. The first 2 mentioned, send me annual statements telling me how much the pensions will be worth when I get to 65 in terms of 'units' and terms such as 'total fund value'. I have not thought much about these pensions, as they are from employment dating back to the early 70s and the late 80s. However, the clock is ticking a little faster now, and I have the retirement 'winning post' in sight. What I would like to know is exactly how much I am going to get per annum? Does 'total fund value', of say, just for an example, £9500, mean this is the annual sum you will receive upon retirement? Many thanks, David.

29th March 2010, 18:02	#4
trebor This is my second home Rover 75 CDTi Connoisseur SE & MG ZT Saloon 190 Join Date: Jun 2007 Location: Coven Posts: 12,523 Thanks: 526 Thanked 1,877 Times in 885 Posts	the statements sent out by some companies include an idea of the projected monthly payout from the fund, so if your statements dont tell you this, you can always ask __________________ www.midlandsnanomeets.co.uk Robs Car Gallery Coven near Wolverhampton WV9 2000 Cowley Built Rover 75 2.0 V6 Club SE/ Atlantic Blue/ Sandstone/Walnut (daily driver) 2003 Land Rover Freelander 1 TD4 HSE Helsinki Blue/Black Leather (swmbo daily driver)

29th March 2010, 20:07	#6
arry Avid contributor none Join Date: Sep 2007 Posts: 123 Thanks: 0 Thanked 0 Times in 0 Posts	Get some professional advice on your pensions. Generally any 'fund' that you have built up during your working life is converted to a pension by buying an annuity usually form the company you have the money with. A small fund will only buy you a very small 'annuity' sometimes hardly worth having. Once you die the 'annuity' dies with you and cannot normally be passed on to others to collect. Therfore the Lump Sum you have saved up is lost forever to the fund holder. I believe that recent changes in pension law does allow you,in certain circumstances, to get a lump sum payment in place of an annuity especially when the fund that you have built up is quite small. I seem to remember that the upper limit is about £15000 but don,t quote me on this. Whatever you do act quickly before it is too late. Money Box Live on Radio4 is great for giving advice on pensions etc and it is worth taking a look at thier pages on the BBC Website. Hope this helps. Arry.

29th March 2010, 20:24	#7
justmicky I really should get out more....... Rover 75 Saloon 1.8 Club SE Join Date: May 2008 Location: north west Posts: 2,160 Thanks: 0 Thanked 1 Time in 1 Post	Just looking at one of my pension funds, the projected fund value assuming an investment return of 5% each year will be £112,539 at the age of 65 (another 14 years). This will give me a pension each year of £6060.

30th March 2010, 07:19	#10
JohnDotCom * Rover 75 FaceLift Tourer CDTi 170BHP Auto ConnSE 2005 Model Starlight Silver Join Date: Nov 2006 Location: Abergele Posts: 28,735 Thanks: 0 Thanked 6 Times in 5 Posts	I was referring to the small pension (£6000PA) + State Pension of member that would stop him claiming as to much income on current scales even. As many have found if your pension is going to pay less than £20k+ PA generally better off relying on the State system and benefits as many have found, more so if care etc is ever needed. Just my own thoughts and sorting Father in Laws recent care problems.