What happens if I retire but don't take my pension?

pimento

squirrelpie wrote: »

Doesn't that contradict what your booklet says? Does your booklet say anything else about retirement dates? What is the booklet called? (i.e. is it definitive rules or just an annual informative flyer?) I think you need to understand your scheme's rules more fully.


It might be worth talking to the scheme's administrators and/or the trustees. They could tell you all about the possibilities and your questions needn't get back to your employer. How real is the possibility of redundancy? Does your employer have a reputation for treating people well or for gouging them?

The booklet is called The Name of my Company Pension Scheme.

There's a small chance of redundancy. I work for a foreign government and the decisions are made abroad. they have a good reputation and my redundancy package would be very good indeed (capped at two years salary). You can see why I would like to be made redundant. It has happened, the last person was made redundant from my department two years ago.

GunJack

It sounds like you'd be best advised talking to the scheme administrators, to get as accurate picture of each of your scenarios as you need...information is a pre-requisite of decision-making

drumtochty

If you talk to the pension scheme admin they are not allowed to tell the HR department that you asked for a retirement quote. Unless you ask them to request permission from the HR department to ask senior mangement if you can go early.


What you are asking for is data to allow you to compare the pension you get this year or next year which is normal financial planning data.


Let's not get hung up on what will happen if you request the data.

pimento

drumtochty wrote: »

If you talk to the pension scheme admin they are not allowed to tell the HR department that you asked for a retirement quote. Unless you ask them to request permission from the HR department to ask senior mangement if you can go early.


What you are asking for is data to allow you to compare the pension you get this year or next year which is normal financial planning data.


Let's not get hung up on what will happen if you request the data.

The woman who is the pension contact sits in the same open office as the HR department and they all talk to each other.

I have approached one of the trustees because at this stage, what I would like is just some general advice.

I'll let you know how I get on (if you're interested..?).

mgdavid

pimento wrote: »

This is my question. How will I know what the difference between the two figures is?

OK, keeping it simple:
With a DB pension your earn a fraction of your final salary for each year of service. Common fractions are 1/60th or 1/80th - your Scheme Rules booklet will define this.

Years of service are counted from your Pension Scheme joining date (not necessarily your actual start date in that employment, could be a few weeks or months different).
The salary the pension is calculated on might be the final year's salary or could be an average of the last 3 years, or an average of the best 2 out of last 4, or other permutation, again the Scheme Rules will tell you this.
Once you have all the information you can work out what one more completed year of service will give you in pension.

Marcon

pimento wrote: »

The woman who is the pension contact sits in the same open office as the HR department and they all talk to each other.

I have approached one of the trustees because at this stage, what I would like is just some general advice.

I'll let you know how I get on (if you're interested..?).

Ask for 3 figures for 'comparison'(!) purposes: retirement at 59, 60 or 61. That should keep HR guessing!

Bimbly

Also, you could always say that information you receive means that you cannot afford to retire now and if they want to get rid of you, they will need to make you redundant. Regardless of whether this is true or not.

You could always mention, casually, to the person you speak to about your pension "so looks like I'll need to keep working, then..."