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Civil Service Pension - do I need to be checking on annuities etc?

Bazzeer
Posts: 12 Forumite


I'm nearly 60 and about to receive my Civil Service pension. I left my Civil Service employment nearly 20 years ago but had over 20 years service in one of HM Dockyards from the 70s to the 90s.
Can I assume the Capita valuations of my lump sum and pension payouts are the maximum payouts and I don't need to be checking on annuities etc or should I be getting some kind of financial advice regarding annuities etc?
Can I assume the Capita valuations of my lump sum and pension payouts are the maximum payouts and I don't need to be checking on annuities etc or should I be getting some kind of financial advice regarding annuities etc?
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Comments
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Your pension is guaranteed by the scheme rules. Annuity rates only matter to those people who buy an income from a lump sum, probably accumulated as part of a Defined Contribution pension.0
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Thanks for that Linton, as you may of gathered, I know absolutely nothing about pensions but from what you say I assume I can just sit back and let Capita get on with it?0
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And once your pension comes into payment, make sure that your tax position is correct.
http://www.hmrc.gov.uk/pensioners/pension.htm0 -
I don't know what communication you have had from Capita. They should have contacted you at least 3 months before your 60th if they have your current address. Assuming the Classic scheme, it should be the default lump sum of 3 x pension with the option to exchange pension for more lump sum at a not very favourable rate. Reverse commutation (sacrificing lump sum for more pension) is available with a return of about 5% depending on age/gender/spouse benefits, which beats current annuity rates with indexed linking. However this may not be offered. You have to ask for it because it isn't a fixed fraction like ordinary commutation. At least that was the position 5 yrs ago.0
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