bobbie

bobbie1234_2

i am currently working, i get a very low wage, taking special needs children to school. i currently recieve tax credits, and i am wondering whether to collect my N.C.B. pension at the age of 50, which is in september 2011, with what is giong on with the pensions at the moment, should i collect it or leave it.

many thanks

JOHNGT

Generally, you can't take a pension before 55 unless the scheme had an early retirement age written into the scheme rules on or before 10th December 2003. Check with them that this is the case.

Disadvantage of taking pension benefits early is that your pension will be substantially reduced. Have you checked how much it will be reduced? Generally not a great idea to take too early if the reduction is large.

As for worrying about whether pensions are safe/secure, then yes they are. There is an insurance scheme called the pension protection fund that will protect your pension (up to a limit of £20000+ depending in age) if the pension scheme runs out of money and the employer is bust. In the case of the NCB, your pension is underwritten by the government (taxpayers) so is as safe as the Houses of Parliament.

Blobby8_2

JOHNGT wrote: »

Generally, you can't take a pension before 55 unless the scheme had an early retirement age written into the scheme rules on or before 10th December 2003. Check with them that this is the case.

Disadvantage of taking pension benefits early is that your pension will be substantially reduced. Have you checked how much it will be reduced? Generally not a great idea to take too early if the reduction is large.

As for worrying about whether pensions are safe/secure, then yes they are. There is an insurance scheme called the pension protection fund that will protect your pension (up to a limit of £20000+ depending in age) if the pension scheme runs out of money and the employer is bust. In the case of the NCB, your pension is underwritten by the government (taxpayers) so is as safe as the Houses of Parliament.

So you are right to be concerned. My deferred final salary pension has been changed from retire at 60 to retire at 65, I have not taken it yet & will not be suprised if it is pushed back to 66 or further.

dunstonh

So you are right to be concerned. My deferred final salary pension has been changed from retire at 60 to retire at 65, I have not taken it yet & will not be suprised if it is pushed back to 66 or further.

Final salary pensions rarely get the scheme age pushed back. Typically new versions of the scheme pension come in for new members or future membership with the original scheme being the same (i.e. a new version). More commonly the scheme age was always 65 but trustees historically allowed earlier retirement without any fuss or penalty. Increasingly nowadays they enforce penalties that the scheme rules allow.

Blobby8_2

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