Left Civil service pension scheme - what option

clairehi

DH recently left Civil Service pension scheme (premium) with only 15 months service. not voluntarily he was made redundant

he has 2 options - take cash or transfer in funds to new final salary occupational scheme.

transfer in value will only buy 100 days in the new scheme, and looking at the forecast for what this would provide at retirement, it is risible. also he may well move on again before he has been in the new job for 2 years so will be stuck in the same position again shortly.

we havent had a cash value as yet but I expect it will be about £1000 after tax etc. would it be better to use this to pay off a bit of the mortgage, rather than transfer into a scheme he is likely to leave again shortly I wonder.

a bit disappointed with this, esp. as DH has moved jobs a lot, at age 35 he has only got 2 years worth of occupational pension contributions elsewhere.

miaxmia

When I left work to have my children donkeys years ago, I cashed in my occupational pension - now I am getting older it is one of my biggest regrets!! The money was useful at the time and at that time retirement seemed far too far away to be worried about it!

Mikeyorks

clairehi wrote:

DH has moved jobs a lot, at age 35 he has only got 2 years worth of occupational pension contributions elsewhere.

Think you're answering your own question?

Use the money (CSP - and also enquire if cash option on the stored 2 years you mention) to kick off a personal pension plan - and have the discipline to keep it flowing? He could then probably opt out of any other occupational schemes that come his way?

dunstonh

He could then probably opt out of any other occupational schemes that come his way?

eek! opt out of free money?

Mikeyorks

dunstonh wrote:

eek! opt out of free money?

Implicit, if not explicit, that I was intending 'contributory'? Don't think you con opt out of non-contributory schemes?

clairehi

the deferred benefits from the 2 years contributions (FS scheme) he has got are very good, so they will be staying put.

this is not a case of lack of financial discipline but patchy employment record and until recently, not being able to afford to save for a pension or anything else.

I dont think opting out of his existing FS scheme is a very good idea either.

I just cant believe that 15 months of contributions to the Civil Service scheme has basically amounted to virtually f all but would like to know what the optinos are apart from buying only 4 months of contributions to his new scheme.