Anyone any good at pensions, I am convinced this must have been a typo

[FinallyFluid]

We are in discussions with an IFA at the moment as DH retires in twenty one months, we have mostly channelled all our efforts into his pensions.

However I was in a final salary scheme in the early 90's, now according to the provider my CETV for this pension now is £38,000.

The final salary pension on my leaving date in 1993 was £500 per annum, I wasn't particularly well paid at the time as I was only part qualified.

The provider forgot to send through the uplift to what this would be worth in todays money, so she is going to chase this.

But my question is this, surely a CETV figure of £38,000 is a typo, based on what it was worth in 1993.

Too high or too low?

It's a complex calculation and to check it you'd have to provide a lot more information than you have. It may be right or it may not.

Your IFA is in a better position to judge whether it's reasonable or not.

I would wait and see. Can you contact the company and ask for details?

I worked part time for a while (large company) and paid very little into my pension. When I rang them, sent marriage cert in as it was a long time ago, it was £39,000! You could have knocked me over.

Good luck

Your £500 per annum pension in 1993 would be worth at least £712 per annum today just through inflation. If it’s being paid from age 60 and had annual increases linked to inflation, you could be offered a CETV of 50x the per annum. £38,000 divided by 50 equal £760 per annum. £712 per annum is not that much different from £760 per annum. Your per annum amount today is probably in that range.

So, no I don’t think it’s a typo.

I'd have thought that quotes would be computer produced so a typo wouldn't be possible or do you tink someone has re-typed out the figures from some kind of computer quote.

I can't see how anyone can tell you other than your own advisor

Sounds about right to me op. Your pension pa will have increased whilst in deferment and probably has an attached survivor benefit. When it goes into payment you would expect it be in payment around 20 years so £38k seems reasonable as an overall value of the pension.

I've seen people get very excited about CETVs though as it sounds like a lot of money but in the great scheme of things it still relates to a fairly small annual pension!

Thank you everyone, will let you know. 😁

@Abendintheriver
Good point, but this is not needed in the scheme of things. So it is a bonus.

Love a good bonus @FinallyFluid, unexpected money matters usually go the other way in my experience!

£39k per annum or is it the £712? Don’t know a lot about these things.