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private pension, question

While I was working at a company about 4 years ago , I opened a private pension plan. I stopped contributing after a few months. I did not realise though that I was opted out of the State Second pension. I have now opted back in but about £3000 was paid into the private plan instead of the SSP at this time. Presently, nothing is being paid in at all, and I do not plan to pay any more in.

On my last statement the figures say...

2006 Plan value 4845.64 What you get back when you retire:your fund might be worth:
From payments to replace the additional state pension £86,400

This could buy you a yearly pension of: £3020

From all other payments £1350, £48 a year when you retire

Since I have opted back in to SSP I dont know why the £86400 figure is that high????

How can £4854 turn into £86400? Are they assuming I am going to opt out again?

Is this plan value of £4845 worth bothering with, seeing as I'm not going to pay any more in?

Reply to
beno
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On my last statement the figures say...

2006 Plan value 4845.64 What you get back when you retire:your fund might be worth:

This could buy you a yearly pension of: 3020

Since I have opted back in to SSP I dont know why the 86400 figure is that high????

How can 4854 turn into 86400? Are they assuming I am going to opt out again?

Is this plan value of 4845 worth bothering with, seeing as I'm not going to pay any more in?

Get a calculator and see what 4845 comes to at your age 65 at an assumed growth rate of say 6% p.a. I don't know how old you are, but you surely don't want to chuck 4845 away do you?

Rob Graham

Reply to
Rob graham

It is 7% growth on the fund over about 42 years. Or possibly they are assuming you will make some contributions to it.

That sort of money in 42 years time won't be worth much.

You are stuck with it, and it will be worth something.

Reply to
Jonathan Bryce

"Jonathan Bryce" wrote

Using your crystal ball? Back off - it's an Actuary's job to predict the long-term financial future, not yours!!

Reply to
Tim

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