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Pension Help Please

I am almost 49 years old, was in a non-contributory final salary scheme for about 3 to 4 years in the late 1980's. In 1990 I left work to have a baby, have stayed home since bringing up my children and now work only part time. I have no other pension other than the above, and am not likely to start one as I have other family commitments than my children and am likely to be unable to contribute to retirement savings in the foreseeable future.

Last year I asked for a valuation of the above pension and was given a transfer value (which they said was the same as a valuation?!?)This was £6343.21 made up of Guaranteed minimum pension amount of £1440.79 plus Value of non- Guaranteed minimum pension up to 1997 of £4902.42. Then it says the value of benefits arising from contracted out service from 6 April 1997 were £nil.

So, I know you're not allowed to cash in a pension, but I can see this being worth virtually nothing when I reach retirement age of 65. I have been told that it is too small a sum to use as a starter for another pension that I will not be able to add to, I;m scared that the company holding my current pension will go out of business ( car manufacturing components company who have been going down the drain since Rover closed)...So do I have any options at all please?

Thanks to anyone who may be able to help!

Lyn

Reply to
Lyn
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Isn't it still 60 for you lucky things of the female persuasion?

Surely the pension isn't actually *held* by the two-bit company which employed you, they only contributed to a pension fund run by a proper pensions provider. If your company goes donw the tubes, your pension should still be safe.

Reply to
Ronald Raygun

Robert Maxwell??

Rob Graham

Reply to
Rob graham

I think that if you said this surronded by workers from AWS you would struggle to get out alive.

I believe that the OPs problem is real, unfortunately I don't know the solution.

tim

Reply to
tim (in sweden)

Nope - From 2010 female retirement age is rising...by the time I retire (I'm 48 now)it will be 65

Reply to
Lyn

Which my wife keep telling me is the price of equality - she see it as women coming down to the level of men!

Reply to
Colin Forrester

Hopefully the Pension Protection Fund should kick in if the company goes bust along with the fund, but I'm no expert.

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Also, as from April , funds with a value less than 15,000 can be taken as a lump sum.

Chris

Reply to
Ozzie

Who told you that ? AFAIA there's no such restriction on stakeholders if you can indeed transfer a final salary scheme into one.

General links and info on my webpage

Be aware that there are a number of significant rule changes on April

5th (called A-day) which may or may not affect you -

Daytona

Reply to
Daytona

Who or what is or was AWS?

I don't believe it is. The OP's ex-employer is a small company and as such would not itself hold and administer the pension funds of its current and former employees, but they would instead simply pass contributions to an independent pensions provider.

While such providers are not totally immune from collapse or foul play, and the pensions are therefore not utterly safe, remaining at risk of problems with the *provider*, they will still be safe from collapse of the *employer*.

Reply to
Ronald Raygun

Sorry finger trouble. ASW

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I think that part of the problem is that the pot may become underfunded at some time in the future when there is no longer a company to make up a shortfall.

tim

Reply to
tim (in sweden)

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