How to calculate your Nuvos Pension

sleepless_saver

jacton wrote: »

Using your figures as an example, if after two years I had £506 in the pot, and decided to retire, how would the pension administrator work out what my annual pension would be, or are these calculations not available for the public.

For my own satisfaction I want to try to work out if I could live on my original pension and the new one, (albeit small as it will be) but I just wanted to see if I cold afford to retire and live on these tow pensions, before I'm 65 and my state pension starts.

If that is what you are trying to work out, then you need to take account of any actuarial reduction resulting from retiring before the nuvos scheme's normal pension age, whatever that may be.

dzug1

Perhaps another way of looking at it is that there isn't a pension pot - just a pension calculation from your adjusted average salaries.

jacton

Thanks to all for you help, I now understand how to work it out. Taking in all the factors that have been mentioned including a 5% reduction per year if I take my pension before I reach 65, I have worked out roughly what I should receive.

Once again many thanks to all.

Spanner42

Jacton, you are not being thick. I joined the civil service 3 years ago and no one could explain it to me. I couldn't understand why they were asking me to pay in 3.5% only to get 2.3% out in return. I kept asking why this was. No one explained that you had to add up all the years at the 2.3% rate to find out what the annual pension would be. The way the guidance and HR/pension people explained it seemed to suggest it would tell you what was in your pension pot rather than being the amount of annual pension you will receive. It just didn't make any sense. In desperation after not getting the answers from my employer I rang the civil service pension people at Cabinet Office who were of little help. I spoke to 2 financial advisers neither of whom could undertstand it and had no experience of the civil service pension schemes. I spoke to other pension companies where i had pensions from previous private sector employments. It was a joke. In the end I opted for the partnerhsip scheme on the basis that I could at least manage where the money was invested and if I didn't stay in the Civil Service I could at least take it with me. I have finally figured it out after stumbling across the posts on this forum Oh, and I happen to be a Chartered Accountant! I will be switching across to Nuvos asap!

hugheskevi

I kept asking why this was. No one explained that you had to add up all the years at the 2.3% rate to find out what the annual pension would be.

Knowing the standard of administration and pension records in both public and private sector DB schemes, I do wonder if switching all schemes to career average which need more record keeping than a simple final salary system might not all end up in a lot of administrative tears a few years down the road regarding that 'adding them all up' bit

I will be switching across to Nuvos asap!

If you are a Chartered Accountant, I'm guessing you are on reasonable money, and hence are about to start paying considerably higher pension contributions from next month?

If so, you might want to have a read through this thread, especially if you are young, as the decision may not be clear-cut.

Goldenyears

A strange thread. In my CS department I never came across anyone who puzzled about how Nuvos worked (oh well maybe because we were engineers and mathematicians). It's not as if career average schemes are anything new in the public sector. Medical Research Council had one in 1968 !