Join Today
Results 1 to 5 of 5
  1. #1

    Final salary pension closure

    I work for Tatasteel uk. Tatasteel have closed our final salary pension scheme and the funds future has not been decided yet. I have the option to transfer approx 500,000 out of the scheme into another scheme or leave it there, if I don't transfer it soon I may not be able to in the future. also the fund is going to have 500M put into it soon.
    I am 47 and if possible I would like to get access to a pension at 55 due to health issues.
    I am like a rabbit stuck in headlights at the moment and scared to make any move.

  2. #2
    I sympathise with your situation and hope it works out for you

    To help people here provide comments and suggestions (none of us can ADVISE you what to do) it would help if we knew about your situation.

    Married / Partnership? Any dependant children


    Is this your only pension?

    What about other savings or investments?

    You don't have to give exact figures if you don't want to but for example, if you said:

    "I only have the money in my pocket, I won't be paying my mortgage off until I am 72, my other half doesn't work and we have 4 children under 16"

    the suggestions and ideas on what to consider would probably be different to

    "I have another pension that will pay me 10k a year from 65, my partner will get another 8k in 15 years times plus I have 200k saved and I have paid off my mortgage and have no family dependant on me"

  3. #3
    If rules dont change you will be able to access your pension @55(I assume). Try asking the administrator for a forecast. If you transfer out you will be shouldering ALL of the investment risk and paying around 1% for it to be managed by an IFA. I dont think TATA will be allowed (or want) to cut and run. I have a deferred pension(nearly twenty years) thats around 500k too, the fund is in deficit but a company that picked over the carcass of my old employer is working to reduce that.
    I reckon @ 55 you're looking at 10k pa in todays money(that assumes your scheme is based on retiring at 65).
    I assume you're still working(say 40k at Port Talbot), how does 10k sound at 55? Dont forget a nice redundancy pay off (if you get the chance).

  4. #4
    My wife (age 62) has retired and has a small personal pension of 240 a month, I own 2 rental properties that bring in about 700 a month after expenses, my own mortgage will be paid in about 5 years. No dependants as such, just two granddaughters that we like to spoil, and I only have this pension. No saving as I make overpayments on my mortgage.

  5. #5
    The pension is either going into the PPF or there is a new separate pension scheme being started that we can transfer our pensions into if we want. I would lose 50% if I took it at 55 and if/when it goes into the PPF the fund will drop by 10% so then at 55 I am down to approx. 45% of the full pension. There will be no more redundancies in Tatasteel UK, there is nothing to keep people there now so people will be leaving in droves as the pay is not good, I dream of 40K a year. My best years wages is from 21 years ago.


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts