Civil service pension early

remyroo · 6 June 2017 at 6:13PM

Hi. I am a member of the Clasic scheme and am considering taking my pension early at 52.
I understand the lump sum will be reduced by 3% per year for every year under the age of 60.
My query is how much will the pension be reduced by.
The guidance isn't very helpful as its states" about 5% "per year.
On a previous forum someone mentioned its 3% per year under 55 and 5% over 55.
I have phoned and asked for a pension forecast but this could take 9 weeks. I am unable to use the online calculator as they only work from age 55 upwards.
Thanks

xylophone · 6 June 2017 at 6:29PM

http://forums.moneysavingexpert.com/showthread.php?t=5565513

may be of interest.

remyroo · 6 June 2017 at 7:31PM

Thanks for the link.
It seems to confirm what I had read elsewhere however when I spoke to My CSP they were adamant it was 5% per year from the age of 50 (I'm hoping they are wrong!) I guess I'll just have to wait for the forecast to come through.

Tiddlywinks · 6 June 2017 at 8:15PM

I always thought it was 5% per year to retire early after 50.

Link

Do I have to wait until scheme pension age to get my pension?
You can apply to MyCSP to have your pension paid early on a reduced basis at any time after reaching age 50 (55 if you joined the Civil Service on or after 6 April 2006). You should note that your benefits will be reduced permanently by around 5% for each year before scheme pension age.

jerrysimon · 6 June 2017 at 10:04PM

Inflation increases are also not applied until after 55 though at that point I think they are backdated ?

I have taken mine at 56.5 years old i.e. 3.5 years early and it was reduced by 15%

Jerry

jamesperrett · 7 June 2017 at 1:07PM

The downloadable Excel based calculator certainly works from age 50 for me - there are a couple of different versions though so it might be worth looking at both the early retirement calculator and also the actuarial reduction buyout calculator linked from

http://www.civilservicepensionscheme.org.uk/members/member-calculators/

A quick play with the calculator shows that your pension will be reduced by 31% and your lump sum will be reduced by 22.5% by retiring at 52. These figures change from time to time though depending upon current mortality data.

remyroo · 7 June 2017 at 7:37PM

Thanks for the quick calculation. The calculator never seems to work for me!!

moo121 · 10 June 2017 at 9:23AM

Just chiming in as it was me who retired at 51 (and a day ☺) on the other thread. As I said there I received reduced classic pension of 63% and lump sum approx 3 times that. I also got refunded WPS contributions.

Turned_out_nice. · 10 June 2017 at 12:02PM

First post so hello everybody.
moo121, I'm 53 and have 37.5 years on the classic up to when it changes over to the average scheme in February.:mad: You say you got your WPS contributions back was that because you are not married or is that what happens anyway?

Thanks.

moo121 · 10 June 2017 at 5:14PM

Hi I got my WPS contributions back for period after my divorce. If you're still married then no joy

BobQ · 10 June 2017 at 5:22PM

moo121 wrote: »

Hi I got my WPS contributions back for period after my divorce. If you're still married then no joy

How do they calculate the WPS refund? Do contributions get increased for inflation? What is the size of the "insurance" they deduct before payment. Just curious as I have a preserved pension from thirty years ago.

Civil service pension early

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