When You Retire

Unlike most company pensions, the additional pension from the state is fully protected against inflation once it has been awarded.

It goes up each April along with the basic retirement pension. However, your company pension may well not go up with inflation. And the GMP remains fixed at the amount calculated when you retire. Each year the DWP calculates the additional pension you would have received had you remained within the SERPS. If that additional pension is more than the GMP (not the pension you actually get), the DWP pays the difference as an addition to your basic retirement pension.

If you were misold a SERP then there are companies like http://www.serpsreviews.co.uk/ which can help.

It is called payable additional pension. As time passes, most people find that they get some payable additional pension as well as their company pension.

See what to expect when you retire at http://www.nidirect.gov.uk/what-to-expect-when-you-retire

Many people have been confused by receiving a letter from the DWP setting out their pension entitlement with the phrase 'guaranteed minimum pension' and a figure by it. Naturally enough they have assumed that they would get that amount as a pension.

In fact, they do not. It just lets you know the minimum pension you should get from your company scheme, and that if you do not the DWP will make it up. (was the DHSS now http://www.dwp.gov.uk/)

The system is slightly different for people who receive a pension from the civil service or a local authority or any other public service paying authority such as a nationalized industry. But the result is the same.


Other pages of interest - Other Matters

or Company Pensions

Other Matters

/retirement/pensions/other-matters.php... see: Other Matters