27, never contributed to a pension, absolutely clueless (possible police pension)

shoutshout

Hello all you great people.

I'll be upfront about it, I know (roughly) a bit about pensions, but I have no idea how to make them work the best way for myself.

I've worked in a call centre for 4 months in 2017, and that's the only time I've paid in some NI contributions. At the time mandatory pension didn't exist, so my workplace had none. Lots of bad things happened since then, and from that point I've been self-employed with a few under-the-table endeavours , and barely managing to cover the essential expenses. It wasn't brilliant, but it worked. I have no debts whatsoever.

Now, I'm in the recruitment process for becoming a police constable. It may work out, it may not, I can't know it, but my chances aren't bad. So here's the thing, I know (or at least I've heard) that police has a nice pension plan and nice pension opportunities.

I will never have any children, or anyone who will inherit anything from me, so I'm not looking to amass a fortune in my life. I just want that everything is "okay" when I retire, considering I'm behind the curve when it comes to people who have been building up their pension since they were kids.

I would be paid 23k (including pension contributions) a year, which for me is more than enough, I assume I'll earn more as time goes on. Will this be enough to build up a bit of a pension pot assuming I'll work there for at least 20-30 years? Can I pay in "extra" contributions to cover for what I'm missing in the past?

Any tips, warnings, suggestions?

Thanks everybody

GunJack

Police is still a DB (career average) scheme I think, so no "pot" as such, but you'll be building a decent amount per year pension...

Brynsam

Join the scheme as soon as you can (and very best of luck in your new career, assuming you are accepted). Assuming you are joining a force in England, here's the link to the member booklet: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/658720/PPS_2015_Members__Guide.pdf

Robin9

Is the retirement age in the police still 45 ?

shoutshout

Brynsam wrote: »

Join the scheme as soon as you can (and very best of luck in your new career, assuming you are accepted). Assuming you are joining a force in England, here's the link to the member booklet:

thank you for your wishes, and also thank you for the booklet. in all my googling it didn't occur me that gov.uk will have such a guide, which will most likely answer all of my questions after I'm done with it.

Robin9 wrote: »

Is the retirement age in the police still 45 ?

i believe it's 60, however I do not plan on working until then. i am currently renting, and will do so for at least a year or two, but eventually i will be inheriting a sum which should be enough to cover the cost of a house and at least £10k to £20k leftover to go as savings. I'm trying to figure out if, since I will be skipping a mortgage, it will be enough to stop working at around 50 or 55 without worrying how will i pay for food and heating when I'm older

xylophone

Pension benefits for members
The Normal Pension Age (NPA) is 60.
The Normal Minimum Pension Age (NMPA) is 55.
You have the option to retire at any time after NMPA and to take immediate
payment of your pension; if you decide to retire with immediate payment of your pension after NMPA and before NPA, your 2015 Scheme benefits will be actuarially reduced by reference to NPA.

hyubh

Robin9 wrote: »

Is the retirement age in the police still 45 ?

It was retiring on 2/3rds final salary after 30 years - so no, not 45, but very generous even so. However, new recruits haven't had that since 2006, and younger pre-2006 joiners have had it curtailed since 2015. Current CARE scheme is still very good mind.

Paul_Herring

Robin9 wrote: »

Is the retirement age in the police still 45 ?

2015 scheme:

60. A retirement pension paid on or after NPA [Normal Pension Age - 60] is not subject to Actuarial Reduction. A retirement pension ( other than an ill-health pensionor a deferred pension paid early on ill-health grounds) paid before NPA [Down to NPMA (Normal Minimum Pension Age - 55)] is subject to Actuarial Reduction.

Previous schemes:

For 1987 Scheme from any age with 30 years!!!8217; service, or from 50 with 25 years!!!8217; service, or at 55 for all constables and sergeants with less than 25 years service; 55 for inspector to Chief. Supt in the Metropolitan Police with less than 25 years!!!8217; service; 57 for Commanderor Dep. Assistant Commissioner in the Metropolitan Police with less than 25 years!!!8217;service; in all other cases at age60.

55 (2006 Scheme).

Page 78 of the PDF linked by Brynsam.

PeacefulWaters

1) Get into that pension scheme ASAP.

2) Consider funding a SIPP alongside it to cover retirement expenses between age 50 and 59.

3) Don't reduce (1) to fund (2).