Defined Benefit Pension Transfer

Nationwide Pension Fund

Do you have an old Nationwide Pension Fund you are thinking about transferring into a more flexible arrangement?

Below is a general overview of what the scheme benefits are, these might vary from member to member.

If you would like to find out if transferring your pension is suitable for you, why not get started today and receive your free Pension Transfer Guide and arrange a free initial consultation.

Nationwide Pension Fund
Nationwide Pension Fund
Administrator: Buck (Buck Consultants Limited).

Website: https://nationwidepensionfund.co.uk/.

Scheme Retirement Age:

Pension benefits built up prior to 1 April 2011 have a Normal Retirement Age of 60. Pension benefits built up since 1 April 2011 have a Normal Retirement Age of 65.

Are partial transfers allowed?

Partial transfers will be allowed subject to the following conditions: only one partial transfer will be permitted although the balance of deferred benefits can also be transferred at a later date, any GMP will be retained within the fund, other than GMP the partial transfer.

Scheme Funding Position:

At the last triennial valuation on 31 March 2019 there was a deficit of £180m on a Technical Provisions basis.
In accordance with the deficit recovery plan, a recovery contribution of £61m was paid in July 2020 and on 23 November 2020 the Trustee formally entered into an arrangement with Nationwide Building Society that allows the Trustee to take control of up to £1.7 billion of additional assets for the Fund in the unlikely event that the Society become insolvent or unable to pay contributions in the future.

Revaluation:

Deferred pensions are revalued in accordance with statutory minimum requirements. Please note there is no ‘step-up pension’ payable in respect of GMP when payment commences before age 65 (male) or 60 (female).

Escalation:

Increases applied on 1 April based on previous September RPI capped at 5%. This applies to the whole pension, including GMP.

Flexible Options

If the pension is taken after the scheme Normal retirement Age (NRA), the benefits are revalued to NRA and receives the late retirement factors thereafter, calculated on a daily basis.

Death in Deferment

On death in deferment a dependant’s pension is potentially payable. This is calculated based on the member’s pension revalued to date of death and is at the rate of 60% of the pre 1 April 2011 pension and 50% of the post 1 April 2011 amount.

If no dependant’s pension is payable a lump sum equal to twice the member’s contributions, plus 4% per annum compound interest, is payable.

Death in Retirement

On death in retirement, a dependant’s pension is payable equal to two-thirds of the member’s pre 1 April 2011 pension, plus half of the post 1 April 2011 pension. The dependant pension is calculated assuming the member did not take tax free cash and includes increases during payment.

The pension is guaranteed in payment for a period of 5 years.

Transfer Timescales

The timescales below are based on the entire transfer process from the initial enquiry, through to advice, and eventual completion of the transfer, in months.

This information is based on our own scheme specific real-world data gathered over an 18 month period. To be clear and ensure there is no risk this information can be deemed misleading, it is our own data for the entire process, which includes our own very thorough and complex regulatory analysis and advice process, in addition to the gathering and provision of accurate information from the scheme administrators and their subsequent completion of any pension fund transfer requests. Future timescales could vary.

Fastest: 4.0

Slowest: 12.9

Average: 6.5

Need Nationwide Pension Transfer Advice?

If you are a member of the Nationwide Pension Fund and would like to know if transferring or cashing in your pension at 55+ is suitable for you, why not get started today and receive your free Pension Transfer Guide and arrange a free consultation.

Grove Pension Solutions Ltd is regulated by the Financial Conduct Authority and specialise solely in defined benefit pension transfer.

Get Started Today

Free Pension Transfer Guide & Initial Consultation

Free Pension Transfer Guide & Consultation

Complete the form below to receive your Free Pension Transfer Guide.

If you would like to find out if transferring or cashing in your pension is suitable for you, we can provide a free initial consultation known as abridged advice.

Simply return the enquiry form included in the guide and post it back in the free post envelope provided.

As part of the consultation we will look at:

  • What existing pension plans you have in place.
  • Whether you have the right type of pension to transfer.
  • What your plans are for retirement.
  • How much cash you can release.
  • Whether your existing pension remains the best fit for you.
  • The likely cost of more in-depth advice.

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Defined Benefit Pension Transfer Warning

Transferring away from a defined benefit pension scheme means you will lose valuable guarantees.

Taking benefits early will almost certainly reduce your pension income in retirement and is only suitable for a limited number of people and circumstances. This should not be seen as an easy option for raising cash.

If you release all your money from your pension early you will not have anything left to provide you with income in retirement.

When releasing cash from your pension, usually up to 25% is tax free, the balance is taxed at your marginal rate at the time and could change in the future.

Watch the FCA video explaining the expectations of financial advisers when advising you on defined benefit pension transfers.

Grove Pension Solutions Ltd is authorised and regulated by the Financial Conduct Authority (Reference number 465051).

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