Early Retirement

kidmugsy

moneyfoolish wrote: »

If you are already a pensioner but you defer your pension AFTER the new scheme starts will you still get the old 10.4 increase per year of deferral?

I expect that the deferral rules will trundle on unchanged for people on old-style pensions, but I am guessing. The booklet linked below is dated April 2014, which is before parliament adopted the new rules I think.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/299286/dwp024-apr-14.pdf

Cyberman60

kidmugsy wrote: »

I expect that the deferral rules will trundle on unchanged for people on old-style pensions, but I am guessing. The booklet linked below is dated April 2014, which is before parliament adopted the new rules I think.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/299286/dwp024-apr-14.pdf

I cannot remember where I read it but the 10.4% will not exist under the new system.

Jack_Itin

Apparently, the scheme that I am in is '' contracted out of S2P'' in plain simple english please, what does this mean ? and how, if at all, will this affect me if I go ahead and take what is offered ?......Jack

kidmugsy

Cyberman60 wrote: »

I cannot remember where I read it but the 10.4% will not exist under the new system.

That's right, it'll be 5.2% for new-style pensions. But the question is whether it remains at 10.4% for old-style. And we await a comment from somebody who knows.

greenglide

kidmugsy wrote: »

That's right, it'll be 5.2% for new-style pensions. But the question is whether it remains at 10.4% for old-style. And we await a comment from somebody who knows.

Have they actually announced that? I thought it was just what had been talked about as being "more sustainable"? Would the class 3a announced rate be a guide?

I wouldn't be surprised if the accrual rate for all new deferrment or suspension changed from April 2016 for fairness. I would be annoyed otherwise having missed out on the offer by 6 weeks!

Cyberman60

Surely deferring even at 10.4% is not worth it as you are giving up just a year's pension of nearly £6,000 which would take years to retrieve by which time you could be dead anyway. It makes no sense to me at all.

Triumph13

Cyberman60 wrote: »

Surely deferring even at 10.4% is not worth it as you are giving up just a year's pension of nearly £6,000 which would take years to retrieve by which time you could be dead anyway. It makes no sense to me at all.

Unless you have a medical condition likely to shorten your life, it's one of the best investments around and about 3 times better than a commercially available annuity!

It's fully index linked and you are quids in after less than ten years vs the average life expectancy at SPA of more than double that.

Jack_Itin

So, what is S2P.......anyone ?......Jack

jem16

Jack_Itin wrote: »

So, what is S2P.......anyone ?......Jack

State 2nd Pension, previously known as SERPS.

Jack_Itin

Thanks Jem, I wonder if it will affect me ?......Jack