50 years old entitled to pension

shane71

Hi there everybody whose reading this , looking for bit of advice . I will be entitled to a receive a small pension of £3700 per year at 50 , only catch is I have to leave my current job to be allowed to draw it , otherwise I have to wait till I’m 55 . This means I’m missing out on £18500 . I have a very small mortgage with no other debts , currently earn around £34000 per year in a very secure but physically demanding job , any thoughts much appreciated.

Brynsam

Are you sure your pension won't increase in value between ages 50 and 55? Seems odd if not - and if it does, that will significantly reduce the £18,500 you are 'missing out' on.

shane71

Thanks for quick reply , my pension has been frozen since March 2000 when I took voluntary redundancy . I am now back working for the same company ,although they have been brought out the new company took on their pension liabilities

xylophone

only catch is I have to leave my current job to be allowed to draw it

Do you want to do this for the sake of drawing a modest pension?

my pension has been frozen

This is a deferred Defined Benefit Pension?

It should be revaluing in deferment?

https://www.barnett-waddingham.co.uk/comment-insight/blog/2012/07/24/revaluation-for-early-leavers/

Are you currently contributing to a pension?

Have you obtained a new state pension statement?

https://www.google.co.uk/search?q=state+pension+statement&oq=state+pension+statement&aqs=chrome..69i57j69i59j69i65j0l3.7512j0j8&sourceid=chrome&ie=UTF-8

Paul_Herring

This means I’m missing out on £18500 .

1) If you were to quit your job, how much would you be missing out on in wages? (£170,000 by the looks of it.)

2) Could you get another job/get re-hired by your current job?

shane71

I still want to keep working but in a less physically demanding job after 50 , but this would defo mean a pay cut

mollycat

You should probably, (IMHO) be focussing on how to finance the last, (possibly) 40 years of your life, a big proportion of which will be in retirement.

To me, accessing the above pension at either 50 or 55 would appear to be quite a small proportion of the "big picture".

Don't let the temptation of accessing quite a modest sum of money influence the more important decisions you need to make.

Andy_L

shane71 wrote: »

Thanks for quick reply , my pension has been frozen since March 2000 when I took voluntary redundancy .

it hasn't been "frozen" it has been deferred and will be increasing with some measure of inflation (CPI or RPI, possibly with a +X% and/or capped at Y%, depends on the scheme rules)

If you don't take it any early reduction penalty applied for taking it early will be reducing so its increasing that way as well