Clueless on Pensions - Civil Service Alpha or Partnership?

LJG83

Hello, 

Firstly thanks for all those who have contributed to this topic - it’s supported me getting my head around Alpha pensions. 

I’m part of the Alpha scheme and currently have 47k saved from 15 years of being a civil servant. 

My pension forecast DB from the retirement modeller is below of all things stay the same (38.5k salary);

• 65 = 38k p/a
• 63 = 32k 
• 61 = 27k 
• 59 = 22k 
• 57 = 19k 

Ideally I’d like to retire by 60 years old. Does anyone know how I can calculate how say an extra £100 paid to my pension would impact on the above numbers? 

I’d like to pay more in to my pension via monthly contributions however would like to see how increasing by set amounts of £ would alter the DB salary say may target is to have a 30k salary at age 59.

Hopefully that makes sense and thanks in advance. 

Dazed_and_C0nfused

You can't have 15 years in Alpha, is the 47k split between two (or more) schemes?

LJG83

Dazed_and_C0nfused said:

You can't have 15 years in Alpha, is the 47k split between two (or more) schemes?

Yes apologies should have been clear. Some in Nuvos scheme but predominantly Alpha. 

Dazed_and_C0nfused

LJG83 said:

Dazed_and_C0nfused said:

You can't have 15 years in Alpha, is the 47k split between two (or more) schemes?

Yes apologies should have been clear. Some in Nuvos scheme but predominantly Alpha. 

Are you certain it's £47k?

That seems incredibly high for 15 years accrual when your current salary is £38.5k.

A year in Alpha will add £893.

I don't believe you can increase your normal contributions in Alpha, they are fixed.  But there are options for adding extra pension, some are DB and some DC.  Additional DB mean you will know exactly what you are going to get but DC can be add some flexibility, particularly if you already have a good guaranteed DB pension.

I theres also an option to allow Alpha to be taken early without reduction.

https://www.civilservicepensionscheme.org.uk/your-pension/managing-your-pension/increase-your-pension/added-pension/#:~:text=There are different ways to,Service Additional Voluntary Contribution Scheme.

LJG83

Dazed_and_C0nfused said:

LJG83 said:

Dazed_and_C0nfused said:

You can't have 15 years in Alpha, is the 47k split between two (or more) schemes?

Yes apologies should have been clear. Some in Nuvos scheme but predominantly Alpha. 

Are you certain it's £47k?

That seems incredibly high for 15 years accrual when your current salary is £38.5k.

A year in Alpha will add £893.

I don't believe you can increase your normal contributions in Alpha, they are fixed.  But there are options for adding extra pension, some are DB and some DC.  Additional DB mean you will know exactly what you are going to get but DC can be add some flexibility, particularly if you already have a good guaranteed DB pension.

I theres also an option to allow Alpha to be taken early without reduction.

https://www.civilservicepensionscheme.org.uk/your-pension/managing-your-pension/increase-your-pension/added-pension/#:~:text=There are different ways to,Service Additional Voluntary Contribution Scheme.

Thanks for your response. 

Sorry this is the total pensionable earnings (still getting my head round all of this). My actual pension as it stands is 6k p/a through alpha, 4k p/a through nuvos. 

Thank you for the link. I’ve checked it and associated calculators which has helped me. Essentially it feels like I need to decide whether to pay added pension (monthly or lump sum) or purchase EPA (it quotes 3.5% of salary for 3 years EPA).  

I’ll have a look at the DC option you mention.

NedS

LJG83 said:

Ideally I’d like to retire by 60 years old. Does anyone know how I can calculate how say an extra £100 paid to my pension would impact on the above numbers? 

Use the Alpha Added Pension calculator to calculate how much Added Pension a monthly contribution of £100 would get you (at age 67). Then use the Actuarial reduction tables to calculate how much this would be reduced by should you take it early at age 60 instead of the normal Scheme Retirement Age (which is the same as your state pension age).

Its_all_Dinx

Hello everyone,  this is very difficult thread to understand but I am sure it all makes sense with a good old fashion pen, paper and calculator.

I got a questions after reading all of this and even more confused what EPA is and does and overpayment in an Alpha pension.

  I am around 35ish ok 38.

I got 12 more years left until I get my full state pension.   I really do not want to work all my life and would like to stop in 12 years time.  That takes me to 50. Let's just say pension pot is zero. Tomorrow I start work at £30,000 yearly salary and I have the option of either taking Alpha pension or partnership and I contributed 3%, and in return they added the 14%.    This really costs me £900 a year. (£720 at 20% tax savings)

I understand I can do what I want with my private pension at 58 and it all depends on  the pot size.

But the Alpha pension.  Can I claim this at 58, at 4% it would cost me £1200   But I get the 2.32% each year for 12 years.  Approx £8,000.

Do I get tax savings on what I pay and would I get £8000 if I retire at 58?

Only if there is some kind of video or interactive tools on this.

Dazed_and_C0nfused

Its_all_Dinx said:

Hello everyone,  this is very difficult thread to understand but I am sure it all makes sense with a good old fashion pen, paper and calculator.

I got a questions after reading all of this and even more confused what EPA is and does and overpayment in an Alpha pension.

  I am around 35ish ok 38.

I got 12 more years left until I get my full state pension.   I really do not want to work all my life and would like to stop in 12 years time.  That takes me to 50. Let's just say pension pot is zero. Tomorrow I start work at £30,000 yearly salary and I have the option of either taking Alpha pension or partnership and I contributed 3%, and in return they added the 14%.    This really costs me £900 a year. (£720 at 20% tax savings)

I understand I can do what I want with my private pension at 58 and it all depends on  the pot size.

But the Alpha pension.  Can I claim this at 58, at 4% it would cost me £1200   But I get the 2.32% each year for 12 years.  Approx £8,000.

Do I get tax savings on what I pay and would I get £8000 if I retire at 58?

Only if there is some kind of video or interactive tools on this.

Ignoring possible pay rises and inflation, using Partnership would add £5,100 per year to a pension pot.

So after 12 years you would have £61,200 plus investment growth (assuming you invested it within the pension wrapper) less any fees.

That £61k is your pension pot which has to last for as long as you live.

If you opt for Alpha you accrue £8,352.  Which will be payable from 68 (this could change as it's linked to SPA).

There is no penalty for taking Alpha early but if you chose to take it 10 years early you might get more like £4,900/year as you are asking the pension scheme to pay it for an extra 10 years.

If you are earning £30k then yes, using your examples you would get tax relief on all of your contributions to Alpha or Partnership.