Civil Service Added Years

OldBeanz

Lyncroft wrote: »

Thanks - do you know how long it takes to process? Do they let you know before drawing the money. Don't really want 18k sitting in a low interest account for too long?

I was pre MyCSP but the cheque sat with them for about 6 weeks from what I can remember.

Kynthia

atush wrote: »

AFAIK, your retiremant age is not 60, but 65. Which could mean a reductions of up to 5% a year (ie 25% for 5 years).

So buying added pension, for it to be reduced is silly.

Far better to pay into a DC scheme and take that one to live on until your pension pays out in full, w/o reduction.

No I dont know how much of this applies to you, but i'd find out before making any decision?

The pension age for Classic is 60 which is the scheme i believe the OP said they were in. It's also 60 for Premium, 65 for Nuvos and state pension age for Alpha.

Those of us who haven't built enough pension in Classic or Premium now will have to find a way to fund the shortfall between 60 and state pension age, where we'll receive our Alpha and state pension.

Lyncroft

Kynthia wrote: »

The pension age for Classic is 60 which is the scheme i believe the OP said they were in. It's also 60 for Premium, 65 for Nuvos and state pension age for Alpha.

Those of us who haven't built enough pension in Classic or Premium now will have to find a way to fund the shortfall between 60 and state pension age, where we'll receive our Alpha and state pension.

Thanks to all for replies.

Yes, I'm in classic due to go to Alpha in Dec so I can draw classic at 60 without penalty. Some people have told me that if you draw your Alpha early at 60 it should work out similar to what you'd have got if you'd stayed in classic but I'll believe that when I see it. And of course you don't get your lump sum on your Alpha portion.

BobQ

GunJack wrote: »

Here, a lot of people have gone beyond 60 even though they were all in classic, and another lot have retired at NPA (60) on the friday and then come back part-time on the monday...remains to be seen what happens when the remainder are transferred to alpha...

This is called partial retirement. They are not actually retiring they are choosing to draw part of their pension and work part time. But to do this they must reduce their earned income by the amount of their pension (ie they cannot earn more pension plus salary than before).

atush wrote: »

AFAIK, your retiremant age is not 60, but 65. Which could mean a reductions of up to 5% a year (ie 25% for 5 years).

You are wrong it is 60 (classic). It would be 65 under Nuvos if the OP had joined after 2005.

The difficulty of the recent changes is that in future people with say 35 years service (say a Classic pension based on 25 years service and then 10 years in Alpha), can reach 60 but probably not afford to retire at 60 as their 10 years in Alpha would be reduced by 30-35% for early payment.

One point the OP should consider is that it is possible to buy added pension under Classic and continue to pay it when he moves to Alpha. Despite being in Alpha he is still buying added pension that would be paid with his Classic Pension at 60. But he needs to move quickly!

That does not prevent him then paying for added pension in Alpha but as has been stated it may not be useful if he plans to retire at 60.

If he plans to work to 65 a further option in Alpha is the EPA which means he would pay a little more for the added pension but the added pension would be paid at 65 whatever the SRA applicable to Alpha.

BobQ

Lyncroft wrote: »

Thanks to all for replies.

Yes, I'm in classic due to go to Alpha in Dec so I can draw classic at 60 without penalty. Some people have told me that if you draw your Alpha early at 60 it should work out similar to what you'd have got if you'd stayed in classic but I'll believe that when I see it. And of course you don't get your lump sum on your Alpha portion.

if your SRA is 67 it will be reduced by about 35% if claimed at 60. Quite a hit! An alternative option if you have money to spare is to open a SIPP and then use that to build up a fund that you could then drawdown for 7 years to cover the gap between your classic pension at 60 and getting your SRP and Alpha Pension at 67

Lyncroft

BobQ wrote: »

One point the OP should consider is that it is possible to buy added pension under Classic and continue to pay it when he moves to Alpha. Despite being in Alpha he is still buying added pension that would be paid with his Classic Pension at 60. But he needs to move quickly!
a.

Thanks. I hadn't realised you could carry over into Alpha. I think I've missed the deadline for starting this - I vaguely recall a telephone call this week telling me so (been a long week!). Looking at the calculator I don't think there appears to be much in between paying in a lump sum or paying monthly.


Hmm, SIPPs - looks complicated!

BobQ

Lyncroft wrote: »

Thanks. I hadn't realised you could carry over into Alpha. I think I've missed the deadline for starting this - I vaguely recall a telephone call this week telling me so (been a long week!). Looking at the calculator I don't think there appears to be much in between paying in a lump sum or paying monthly.


Hmm, SIPPs - looks complicated!

It is not carrying over into Alpha. The added pension contract remains as part of your Classic Pension payable at 60. It might be a good idea to try and start a Classic Pension if it is allowed (you can cancel at any time). Added Pension in Alpha is entirely separate to the Classic AP. But as you say it may be too late.

SIPPS are usually investments not unlike a Stocks and Shares ISA. You sign up for the SIPP wrapper and then buy units in funds available through them. You have to decide on the level of risk. They are not for everyone. The difference from an ISA is that you get tax relief on what you pay in and it is less straightforward to access before 55.