BT Pension Scheme Review: Help please.

skycatcher

jennyjj wrote: »

Good point. They probably fear that we will game the system by going on diets, joining a gym and looking both ways when crossing the road.
:beer:

Not on my watch:rotfl:

jennyjj

robin61 wrote: »

I'm coming around to taking the higher starting pension in return for a semi index linked option. ...
I'm thinking that this is a good way of smoothing out the amount of revenue I have in retirement. I think I'd like a bit more when I'm younger.

Well, after much humming and harr-ing, I've opted to take it 1 year before 60th at standard terms (TFLS=3 x pension). The Actuarial reduction hit was 4.2%

I guess I have the rest of my life to regret the decision.

Now.... what to do with that juicy TFLS?:beer:

skycatcher

jennyjj wrote: »

Well, after much humming and harr-ing, I've opted to take it 1 year before 60th at standard terms (TFLS=3 x pension). The Actuarial reduction hit was 4.2%

I guess I have the rest of my life to regret the decision.

Now.... what to do with that juicy TFLS?:beer:

Congratulations.... You've done the hardest bit... Make the decision... I dint think there is a wrong or right one... Enjoy the fruits of your labour for a very very long time:T

robin61

jennyjj wrote: »

Well, after much humming and harr-ing, I've opted to take it 1 year before 60th at standard terms (TFLS=3 x pension). The Actuarial reduction hit was 4.2%

I guess I have the rest of my life to regret the decision.

Now.... what to do with that juicy TFLS?:beer:

Congrats. I doubt you will have any regrets. You've done what you were most comfortable with and really there aren't any bad options.

robin61

skycatcher wrote: »

I'm sure the actuaries must have a spreadsheet to model all the options and the impact of inflation... Pity we don't have access! Why should it be a secret... It's our pension and do we not employ them via the trustees?

I would bet that on average it's probably better for them if people take the semi index linked option and/or take a larger lump sum.
But then there are individual things that need to be taken into account such as other income you may be getting in the future and whether you want more money when you are younger or older.
I guess it's nice to have these choices but they are not easy to make. I have changed my way of thinking a couple of times already.

skycatcher

robin61 wrote: »

I would bet that on average it's probably better for them if people take the semi index linked option and/or take a larger lump sum.
But then there are individual things that need to be taken into account such as other income you may be getting in the future and whether you want more money when you are younger or older.
I guess it's nice to have these choices but they are not easy to make. I have changed my way of thinking a couple of times already.

I always thought I'd take the standard offering but I think I'll dig out my last quote and re examine the other options again:eek:

jennyjj

skycatcher wrote: »

I always thought I'd take the standard offering but I think I'll dig out my last quote and re examine the other options again:eek:

That way lies madness:mad:
:undecided

robin61

skycatcher wrote: »

I always thought I'd take the standard offering but I think I'll dig out my last quote and re examine the other options again:eek:

Same here. Until a colleague knocked up a really good spreadsheet where you can model whatever CPI rate you want and look at the break even points. It really focussed my mind as to how long it was probably going to take to break even.
For me, I have a decent AVC so I don't have to sacrifice pension to get the max. At least that's one decision that's easy.

skycatcher

robin61 wrote: »

Same here. Until a colleague knocked up a really good spreadsheet where you can model whatever CPI rate you want and look at the break even points. It really focussed my mind as to how long it was probably going to take to break even.
For me, I have a decent AVC so I don't have to sacrifice pension to get the max. At least that's one decision that's easy.

Don't suppose there is shareable version of that spreadsheet? I have no AVCs - I left in 2003 and put the max from my leavers package into the main pension - so only have 3 options to consider!

robin61

skycatcher wrote: »

Don't suppose there is shareable version of that spreadsheet? I have no AVCs - I left in 2003 and put the max from my leavers package into the main pension - so only have 3 options to consider!

If you send me a private message with your e mail details I will e mail it to you on Monday.