Non-motoring > Pension Statement Miscellaneous
Thread Author: borasport Replies: 19

 Pension Statement - borasport
I contribute to a pension scheme at work - should I be seeing some sort of annual statement ?
 Pension Statement - Suppose
>> I contribute to a pension scheme at work - should I be seeing some sort
>> of annual statement ?
>>

Yes. How long have you been contributing? Have you never had a statement?

from Directgov website

Annual benefit statements for your personal or company pensions

The trustees or managers of personal and some company pension schemes must send you a statement each year about your pension.

If you have a defined benefit (salary-related) company pension you can request an annual statement but some companies will send them automatically. If you have a defined contribution (non salary-related) company pension you must receive an annual statement. For defined contribution schemes the statement may include a forecast of how much you could get when you retire. If a forecast isn't included you can ask for one.
Last edited by: Suppose on Tue 17 Aug 10 at 13:19
 Pension Statement - borasport
rooting around in the paperwork last night suggests i've had two in 10 years....
I only got the last one when I approached the pension provider, at which point they sent me the statments for everyone else at my employers, this from an instantly recognisable name in finance, a wholly owned subsidiary of one of the biggest banks/building societies
 Pension Statement - Redviper
A Call to your HR Department, should send one out for you.
 Pension Statement - Zero
Yes you should get one every year. Make them earn the 7% admin fee they are stealing from your pension,
Last edited by: Zero on Tue 17 Aug 10 at 15:07
 Pension Statement - Tooslow
"Make them earn the 7% admin fee they are stealing from your pension", yes indeed and keep an eye on the blighters - they make mistakes. My final salary pension statement was issued each year, usually in August though sometimes later and sometimes, as mentioned elsewhere, only after asking "have they been issued?". It stated the position as at April. Computers? never heard of 'em.

Year after year there were errors, even things as basic as the start date of my pensionable service or if I was married or single. I think they got my date of birth wrong one year. So I learnt how to calculate it myself. I got a copy of the rules, set up a s'sheet and if their numbers were within a few pounds of mine I was happy, otherwise... "Dear Sir...".

It may be difficult to argue with them now but it's going to be impossible years from now when you don't have the facts / numbers available to you. Be polite but be persistent.

JH
 Pension Statement - legacylad
borasport,
I always received an annual statement, which depressed me for hours! I stopped paying into my personal pension 10+ years ago,(being self employed nobody else contributed) and as I neared my mid 50's, decided to take my 25% tax free lump sum before the goalposts were moved. A friend of mine is an IFA and he seconded the decision.
I spent the lot, and a bit more, on my 6 year old 330Ci in Jan this year. Every time I drive it I think 'that's less commission you blighters are getting'.
Best decision I made in years.
 Pension Statement - rtj70
We're losing our final salary scheme - closing down. But we always got a very detailed break down each year. The replacement proves anything but a final salary is worse.... to save money they are willing to put in double what I do and then 10% on top of that. So if I put in for example 5% they will put in an additional 20%.
 Pension Statement - Tooslow
Wow. that is good. When our scheme was closed we screamed blue murder and the independent (hmmm?) pension guy appointed to advise the trustees told us that the second offer was one of the best he'd seen. But it was nowhere near yours. AstraZeneca?

JH
 Pension Statement - Runfer D'Hills
I will have to attempt to work until I drop I'm afraid.
 Pension Statement - Zero
My pension Final Salary pension scheme was savaged, so I jumped before it died



 Pension Statement - rtj70
No it's not AstraZeneca. I am sure there's a catch though. They give an example of someone on £20k paying 3% PA. So they put in £600 and the company puts in 6% plus the 10% for a total of £3800. The max they pay on top is 10% plus the 'bonus' 10%. You can take that 'bonus' 10% as salary although it's only 9.4% as a cash allowance.

It's all because those in the final salary pension will be on less than new joiners who aren't in it. Hence the negotiated 10% extra. You can swap and change that yearly too.

If I opt into it then I'd leave the extra in and probably risk no more than 5% salary which they will make up to a total of 25%. But it makes you realise how much risk the final salary pension scheme is because they only pay in the same as you!

The scheme also pays out life cover at 4x salary. It all sounds fair but not as good as the current scheme.
 Pension Statement - rtj70
PS we plan to possibly quit our jobs in say 5 years. Although if I stretched it to 10 years I'd be 50 and maybe could take a small pension early or something.
Last edited by: rtj70 on Tue 17 Aug 10 at 22:22
 Pension Statement - AnotherJohnH
>> I'd be 50 and maybe could take a small pension early or something.

Most people now have a 55 minimum age for taking a company pension - rules changed this April.

www.hmrc.gov.uk/pensionschemes/min-pen-age.pdf
 Pension Statement - Tooslow
r,
Gordon changed the rules as of last April so that you may now draw a pension from age 55, not before. Previously it was 50. My BiL got out with a pension by the skin of his teeth (Corus :-( ).

What it has to do with Gordon, goodness only knows. If you have sufficient income... still, he's gone thank goodness.

JH
 Pension Statement - borasport
So, having re-sent them the email from 2006 advising of a change of address, I finally have an up to date statement. How do I find out what its going to give me in 13 years time when I retire ?
 Pension Statement - rtj70
I assume it's not a final salary scheme then. If not, I thought you get a lump sump which is invested into an annuity. There are probably annuity calculators to work out how much you'd get. But what it won't say is how much you're going to get from the pension scheme to invest.
 Pension Statement - borasport
That's pretty much it, Rob

now if anybody can recommend an annuity calculator that doesn't look like it's just designed to harness personal data for marketting purposes, I'll give it a go...
 Pension Statement - Tooslow
b, as a starter you could look at current annuity rates to see what your capital sum would turn into as income. Moneyfacts or similar website give rates. OK that's not going to extrapolate the future value of what you've got nor any future contributions but it's a good start and the further out you look the closer it gets to being a fairy story.

JH
 Pension Statement - AnotherJohnH
Annuity returns are currently at or near an all time low - hopefully (!) things will have improved a bit by the time you decide to commit.

AFAIR the figures currently range from below 3% to a bit over 6% per annum of the lump sum.

Where in the range depends on a number of factors:

your age
your health (impaired life annuities give better returns)
whether the income is flat, limited RPI linked, guaranteed for 5 years
whether it continues to pay 50% to spouse on your demise
spouses age

You also have the option to take 25% of the lump sum tax free, but this obviously makes the returns even smaller.
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