Take a final salary pension early or wait

124»

Comments

  • highet
    highet Posts: 353 Forumite
    First Post First Anniversary Combo Breaker
    That's why they employ extremely well paid actuaries to do the figures - depends on numerous factors such as normal retirement age of scheme, makeup of membership of scheme etc for example a scheme with a high proportion of female members would have a larger actuarial reduction as females, on average, live longer and therefore, overall, the amount paid out by the fund would have to be stretched over a longer period when member took pension earlier
  • robin61
    robin61 Posts: 677 Forumite
    sleepymans wrote: »
    Some of these final salary pensions do not allow people who have already left the employer to either take the pension early nor take it any later....in fact some pension not claimed at 60, or whatever the scheme retirement age is, can be lost.

    Be very very careful you fully understand the rules of the scheme and how they affect you In Your situation.

    You probably will have the option, at 60, to take less lump sum in exchange for a higher pension, or a larger lump sum for a lower pension.

    That!!!8217;s when you need to get your crystal ball polished!

    The BT pension scheme can be taken at age 50 or older before NRA with the appropriate actuarial reduction even as a deferred pensioner after leaving BT. There are options to take more pension for less lump sum and vice versa.
  • Tom99
    Tom99 Posts: 5,371 Forumite
    First Post First Anniversary
    highet wrote: »
    That's why they employ extremely well paid actuaries to do the figures - depends on numerous factors such as normal retirement age of scheme, makeup of membership of scheme etc for example a scheme with a high proportion of female members would have a larger actuarial reduction as females, on average, live longer and therefore, overall, the amount paid out by the fund would have to be stretched over a longer period when member took pension earlier

    [FONT=Verdana, sans-serif]A female receiving a pension 3 years early is not going to live any longer than without taking the early pension so I don't see how the ratio of male/female comes into play.[/FONT]
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.9K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards