Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Early payment of Final Salary Pension-Pros and Cons

Including Financial Independence and Retiring Early (FIRE)
Alaric
Lemon Half
Posts: 6035
Joined: November 5th, 2016, 9:05 am
Has thanked: 20 times
Been thanked: 1400 times

Re: Early payment of Final Salary Pension-Pros and Cons

#266041

Postby Alaric » November 21st, 2019, 4:16 pm

fca2019 wrote:I have a small DB scheme pension, from an old job, and for taking early retirement you get a lower payout.


I think the OP noted that he had one of the more generous DB schemes, one that didn't apply an early retirement factor from age 60 onwards.

smokey01
Lemon Pip
Posts: 94
Joined: November 6th, 2016, 8:42 am
Has thanked: 4 times
Been thanked: 15 times

Re: Early payment of Final Salary Pension-Pros and Cons

#266102

Postby smokey01 » November 21st, 2019, 7:24 pm

Alaric wrote:
fca2019 wrote:I have a small DB scheme pension, from an old job, and for taking early retirement you get a lower payout.

I think the OP noted that he had one of the more generous DB schemes, one that didn't apply an early retirement factor from age 60 onwards.

That is correct. The reduction is definitely 2.5% from age 60 down to 55, with a small proportion of the later built up years having the 2.5% applied from age 62 to 55 I.e 7 years reduction.

I have the paperwork from the pension provider so I do know the real figures for taking it now as opposed to leaving it and it does appear to be more generous than most.

Avantegarde
Lemon Slice
Posts: 269
Joined: January 29th, 2018, 10:13 pm
Been thanked: 159 times

Re: Early payment of Final Salary Pension-Pros and Cons

#266149

Postby Avantegarde » November 21st, 2019, 10:28 pm

That is a fantastically generous (ie small) level of reduction for each year of early payment between 55 and 60. I'd grab it if I were you!

smokey01
Lemon Pip
Posts: 94
Joined: November 6th, 2016, 8:42 am
Has thanked: 4 times
Been thanked: 15 times

Re: Early payment of Final Salary Pension-Pros and Cons

#267755

Postby smokey01 » November 27th, 2019, 5:49 pm

Avantegarde wrote:That is a fantastically generous (ie small) level of reduction for each year of early payment between 55 and 60. I'd grab it if I were you!


Well I have gone for it, the forms are posted !

ffacoffipawb64
Lemon Pip
Posts: 71
Joined: May 26th, 2019, 11:54 am
Has thanked: 10 times
Been thanked: 17 times

Re: Early payment of Final Salary Pension-Pros and Cons

#273300

Postby ffacoffipawb64 » December 24th, 2019, 9:28 pm

smokey01 wrote:
Avantegarde wrote:That is a fantastically generous (ie small) level of reduction for each year of early payment between 55 and 60. I'd grab it if I were you!


Well I have gone for it, the forms are posted !


Well done, I took my DB early with a 3% pa early retirement 62 to 55. Mainly due to LTA issues ie pension x 0.97 to the power of 7. Would have been daft not too. Will do the same with my earlier DB in about 2 years time (when ER pension matches revalued GMP at 65 - they wont allow it until then). A similar ER factor applies but only from age 60 downwards.


Return to “Retirement Investing (inc FIRE)”

Who is online

Users browsing this forum: Wondergirly and 7 guests