quick classic scheme pension question

markeymark

if you retired early at 55 would u be able to take just your lump sum or do u need to take the pension also?

dunstonh

Not sure if your thread title refers to a type of scheme or not. Assuming its not.....

by taking the 25% are you commencing your pension as well. So, things like death benefits will be reduced. However, you dont have to take the income. You can leave it invested. Not all plans offer this option though and there are consequences as you are effectively robbing a larger lump sum in your 60s to get access to a smaller one now (as well as lower death benefits and possibly having to transfer out into a plan that may not have as good terms).

Assuming it is.... it would depend on the scheme. if its occupational then chances are you would have to transfer the pension to allow it to happen.

Andy_L

If you mean the Classic Civil Service Pension Scheme then you have to take both at the same time

markeymark

yes andy its the civil service classic scheme, soz for the confusion

also im planning to leave at 55, by that time mortgage will be paid and we plan to travel for a while
at the moment i have around £50 (i know it isnt a lot) i can spare per month, is it worth putting this into AVAC? I will have 16 years to pay this in

NAR

Mark I take it you are aware about the pension reductions and lump-sum cap that you face, since the rules changed on 1st April?

markeymark

yes NAR, have worked out calculations from my recent forecast

another question, if i left at 55 and didnt take my pension until 60, would i still be able to pay into it? or would it just be preserved

Andy_L

No, you have to be working for the CS to accrue pension, it would become deferred until 60 (ie increase by RPI every year)

NAR

Andy is 100% correct.

markeymark

ok last question....lol

if i chose to top up is there anyway i could get an estimate of how much id get if i put £50 away in AVAC? or is there a better way to invest this extra money, it will rise in a couple of years when i have more cash available