Redundant in 1993.... pension query

Discussion in 'Finance & Pensions' started by jollyjax, Aug 12, 2011.

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  1. In '93 I was made compulsory redundant and part of the package was a immediate pension at a fixed rate until I get to 55 and then the background index linking kicks in and my pension is updated to the index linked level and then linked for life .... sound familiar?

    My question is... does anyone know where I can get an update on what I might expect to receive at 55, so that I can plan for the future ...

    Cheers shipmates in advance
     
  2. Welcome to Rum Ration, JollyJax!

    You should be able to get a rough idea from this:

    Introduction to the pension calculator

    For a formal confirmation in writing, you should approach the SPVA's Pension Division. They will provide one free personal pension forecast per year. You should request this in writing:

    The Pension Division
    Mail Point 480
    Kentigern House
    65 Brown Street
    Glasgow
    G2 8EX

    Include your name, rank, Service number and Service leaving date.


    For confirmation of these details, you can speak to them on 0800 085 3600, if that helps.
     
    Last edited: Aug 12, 2011
  3. Give them a ring they will send a written reply in a couple of weeks

    Dept. Tele No. is 0800 085 3600.
     
  4. The Forces Pension Society has a table of factors which uprates pensions to current values. If you are a member, give them a ring.
     
  5. That strikes me as a piss poor deal, unless I've got it wrong. I served 18 months notice and got out a little after 12 years with a preserved pension. I didn't get it paid until I reached 60 but at least it attracted an index linked increase every year until then, so now I get a nice little sum on top of my far more substantial NHS pension. It pays for a new car every 3 years.
     
  6. I did a little more than 12 years too. My pension is £3100 per year until I'm 55 when it is index linked - including the indexing from 1993.

    I have a spreadsheet that calculates what I might expect. Essentially, you need to multiply the pension by today's RPI index and divide by the index when the pension was first awarded. This gives you the value today. You can guess what the index will be when you are 55 to get an estimnate of what you might receive at that time.

    My spreadsheet uses RPI but I'm not sure if the ConDems have switched the index linking to CPI.

    P
     
  7. Ah, I was thinking from the OP that pension payments were at a fixed rate until age 55 with index linking being applied from that point. Am I right in inferring from what you say that the index linking is applied cumulatively every year to calculate the pension you will receive at age 55? If that's the case I'm the one who has had the green rub. Still, I can't complain, I'm comfortable enough and my NHS pension is more than enough to give me a good standard of living.
     
  8. You are right Bandy. I did 12 years and 7 weeks and should be receiving around £7K when I'm 55.

    :)

    P
     
  9. That's justice of a sort. I think our boys deserve more...and me, of course, ;-P ,... and I'm sure you're worth every penny. :cheers:
     
  10. Its not as nice as that for some of us Bandy... I served 77 to 93 and redundant as a PO with 9 years seniority but even after the index link kicked in my pension remains somewhat less than you are suggesting and I end up with a little under 6k a year at the age of 55... a car every few years for sure but peanuts these days
    Luckily I am still in work and with a reasonable salary .. lots of folks out there who arent in this economically depressed times.
    The Introduction to the pension calculator doesnt work retrospectively but is great if you are still a serving member. Thanks for all the advice
     
  11. See your PM
     
  12. They can't estimate the amount because it's based on CPI. They can tell you what someone of the same rank and years served will get today. I left in 89 at 43, index linked at 55 and it doubled all bar £20 a month. By 65 it had gone up by about another 80%
    Hope this helps
     
  13. chieftiff

    chieftiff War Hero Moderator

    Just use the table in the excel spreadsheet at the HM treasury site here to calculate your index linking. It will enable you to work out exactly how much you will get.
     
  14. Spot on and that is just what I did for the original poster.
     

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