We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Edf pension/ barber factor

Arthur55
Posts: 1 Newbie
Hi I have a deferred pension with edf. I can take my pension on my 60th birthday next year but it will have a13% reduction due to the barber factor. If I was to leave it till i'm 63 there would no reduction. If I took it next year I would get £9689 lump sum and £1453 per year. I'm currently working so not desperate for the money.
Should I take my pension and put it in a nisa or leave it until I'm 63. Thanks in advance for any replys
Should I take my pension and put it in a nisa or leave it until I'm 63. Thanks in advance for any replys
0
Comments
-
If my health is good and I don't need it, I'd leave it.0
-
Hi I have a deferred pension with edf. I can take my pension on my 60th birthday next year but it will have a13% reduction due to the barber factor. If I was to leave it till i'm 63 there would no reduction. If I took it next year I would get £9689 lump sum and £1453 per year. I'm currently working so not desperate for the money.
Should I take my pension and put it in a nisa or leave it until I'm 63. Thanks in advance for any replys
A 13% reduction for being premature by three years is not unreasonable.
What are the index-linking terms on the pension?
How's your health been?
Is your family long-lived?
When do you plan to stop work?
How good is the rest of your pension provision?
If you took the pension at 60, you could put the lump sum into an ISA to generate income for the future, and contribute the £1453 p.a. into a personal pension so that you can have another tax-free lump sum later. (In fact you could also recycle up to £7500 of the capital into a pension too without problems.) Or you could use the £1453 to have a week in the sun each January.Free the dunston one next time too.0 -
Bit of a long shot but did you leave EdF on a redundancy basis (if so, maybe Barber reduction wouldn't apply)?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.8K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.8K Work, Benefits & Business
- 600.2K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards