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.
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.
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).
Increases applied on 1 April based on previous September RPI capped at 5%. This applies to the whole pension, including GMP.
Death in Deferment
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.
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.
Need Nationwide Pension Transfer Advice?
Grove Pension Solutions Ltd is regulated by the Financial Conduct Authority and specialise solely in defined benefit pension transfer.
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Free Pension Transfer Guide & Initial 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).
What our clients say
Grove Pension Solutions assisted in moving my company pension to a personal pension, which will allow me to retire 7 years earlier than planned.
Since the FCA have made this option very difficult, Grove made the process very swift and smooth, with true professionalism throughout the process. The communication was excellent at all times, and there was always someone to answer a question if it arose.
I would highly recommend Grove Pension Solutions for your personal pension requirements.
Grove managed the transfer of my pension swiftly and kept me in touch with the process at all times. On occasions when I telephoned with questions they were patient, and regardless of who I spoke to, the staff were knowledgeable, friendly and reassuring. Grove Pension Solutions went above and beyond to complete my transfer and I cannot thank them enough.
Nothing is too much trouble, everything was explained in plain English and I was asked several times if I wanted to go through with any information again or any questions , all staff were professional and completely “knew their stuff” they returned calls when promised such a pleasure to do business with a very big thank you
In the final stages of my transfer, throughout the process the service has been very professional, regular updates by phone and email, the advisors are very friendly and explain the process in an easy to understand way. Have recommended to two other people already, wouldn't have any hesitation to use Grove Pension Solutions again, 10/10 thank you.