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  • FIRST POST
    • remyroo
    • By remyroo 6th Jun 17, 6:13 PM
    • 6Posts
    • 0Thanks
    remyroo
    Civil service pension early
    • #1
    • 6th Jun 17, 6:13 PM
    Civil service pension early 6th Jun 17 at 6:13 PM
    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
Page 1
    • xylophone
    • By xylophone 6th Jun 17, 6:29 PM
    • 21,611 Posts
    • 12,427 Thanks
    xylophone
    • #2
    • 6th Jun 17, 6:29 PM
    • #2
    • 6th Jun 17, 6:29 PM
    http://forums.moneysavingexpert.com/showthread.php?t=5565513

    may be of interest.
    • remyroo
    • By remyroo 6th Jun 17, 7:31 PM
    • 6 Posts
    • 0 Thanks
    remyroo
    • #3
    • 6th Jun 17, 7:31 PM
    • #3
    • 6th Jun 17, 7:31 PM
    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
    • By Tiddlywinks 6th Jun 17, 8:15 PM
    • 5,323 Posts
    • 18,340 Thanks
    Tiddlywinks
    • #4
    • 6th Jun 17, 8:15 PM
    • #4
    • 6th Jun 17, 8:15 PM
    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
    • By jerrysimon 6th Jun 17, 10:04 PM
    • 218 Posts
    • 131 Thanks
    jerrysimon
    • #5
    • 6th Jun 17, 10:04 PM
    • #5
    • 6th Jun 17, 10:04 PM
    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
    Last edited by jerrysimon; 06-06-2017 at 10:10 PM.
    • jamesperrett
    • By jamesperrett 7th Jun 17, 1:07 PM
    • 631 Posts
    • 300 Thanks
    jamesperrett
    • #6
    • 7th Jun 17, 1:07 PM
    • #6
    • 7th Jun 17, 1:07 PM
    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.
    Last edited by jamesperrett; 07-06-2017 at 1:13 PM. Reason: Added age specific information
    • remyroo
    • By remyroo 7th Jun 17, 7:37 PM
    • 6 Posts
    • 0 Thanks
    remyroo
    • #7
    • 7th Jun 17, 7:37 PM
    • #7
    • 7th Jun 17, 7:37 PM
    Thanks for the quick calculation. The calculator never seems to work for me!!
    • moo121
    • By moo121 10th Jun 17, 9:23 AM
    • 6 Posts
    • 5 Thanks
    moo121
    • #8
    • 10th Jun 17, 9:23 AM
    • #8
    • 10th Jun 17, 9:23 AM
    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.
    • By Turned out nice. 10th Jun 17, 12:02 PM
    • 2 Posts
    • 0 Thanks
    Turned out nice.
    • #9
    • 10th Jun 17, 12:02 PM
    • #9
    • 10th Jun 17, 12:02 PM
    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. You say you got your WPS contributions back was that because you are not married or is that what happens anyway?

    Thanks.
    • moo121
    • By moo121 10th Jun 17, 5:14 PM
    • 6 Posts
    • 5 Thanks
    moo121
    Hi I got my WPS contributions back for period after my divorce. If you're still married then no joy
    • BobQ
    • By BobQ 10th Jun 17, 5:22 PM
    • 9,454 Posts
    • 12,234 Thanks
    BobQ
    Hi I got my WPS contributions back for period after my divorce. If you're still married then no joy
    Originally posted by moo121
    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.
    Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.
    • moo121
    • By moo121 10th Jun 17, 7:07 PM
    • 6 Posts
    • 5 Thanks
    moo121
    I'm not too sure of the calculation but I think it was a refund of my contributions minus those for the years of my marriage plus a bit of interest. For me it came to over £2k even with the insurance "premium" of quite a few hundreds deducted.
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