noobie pension question

redbuzzard

If Normal Retirement Age for your CU pension is 60 then if you take it at 55 you may face a c. 25%-30% reduction in the starting pension; even more if the NRA is 65. If you can fund yourself (from other savings and/or the equity in your UK house) then it will probably benefit you - the actuarial reduction usually leaves the scheme better off and you are on the other end of that calculation.

As well as a transfer value I'd ask CU/Aviva pension managers for a projection of your expected pension at 55, 60, and scheme NRA if that is different. Then you'll know where you are.

Avoid taking a lump sum from it if you can - it is likely to be poor value, but of course you can take a view on that when you get the numbers.

Short parable. I was in one DB scheme for 7 years, 91-98, and earning £42,000 p.a. when I left - the NRA for that scheme is 60, and in 2013 I started drawing my pension of £8,000 a year from it. It has RPI linkage up to 5% p.a. and a 50% spouse's pension should I fall off the twig first. It's a material part of my pension planning and I'm very glad I didn't transfer out of it (the CETV when I took it was only about £120k IIRC; I didn't commute any of it).

Guesstimating the numbers I must have had about £4,900 p.a. accrued when I left (7/60 * £42k) which has revalued at c 3.3% p.a between 1998 and 2013. It usually is that simple with old-style private sector DB schemes.

atush

If you want to retire early, and have access to a pot of money, open a personal pension NOW. Contribute to it monthly. You DO NOT want to draw you DB pensions early/reduced. It is a waste of their value. You can put in your salary or 40K whichever is lower. But that should include your current contributions. Use some of your S&S isa money?

Property abroad where you want to retire? Great. I have one too. but you may not want to stay abroad forever, so I would not sell up in the UK. Downsize? Sure, but get yourself a small flat or something. Too many sell up, move abroad and then can't afford to come back when they want to. Dont be that person.

Check your NI statement, ask for one online. You were out for 7 years but should be able to get up to the 35 for basic SP, and any years after that will help get you to full rate as you were contracted out for so long?

xylophone

Re new state pension

https://www.gov.uk/new-state-pension/overview

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf