How Does My Pension Pot Compare?

michaels

crv1963 wrote: »

I know it is good value but I accrued 40/80ths by age 50, then "marked time" could accrue no additional pension until the clock started again on the date my incremental date following my 55 birthday- luckily for me 2 days after my birthday. My 1995 scheme is 1/80 pa accrual, the 2008 (never a member) 1/60th, 2015 is 1/54th also never a member. I was too close to my NRA to be mover from the 1995 scheme.

I agree about the 4k additional salary not being worth the reduced pension contribution.

In my real life case I am following pension sharing order some years ago working at least until 58 to accrue the additional 5/80 and will probably remain a member until I retire aged 58-60 as the life cover also included in the deduction is worth it to me - well to my potential widow!

crv1963 wrote: »

The scheme rules for my pension are that I cannot accrue any greater than 40/80ths before my 55 birthday, then I can accrue an additional 5/80ths from 55-58, after which I cannot accrue any more pension.

My NRA under scheme rules are hit 40/80ths and retire at 55 or stay an additional 3 years and retire with 45/80ths. I can then work as long as I wish/ am able but do not get ant additional pension. Hence many retire and return on reduced hours or work agency/ private sector.

Sorry, I misread it as you got 5/80th per year for each of the 4 years between 55 and 58 so another 20/80ths just for those years - now that would have been good value!

I also assumed that because you stopped accruing at 58/9 that was your pension age - another mistake.


Obviously if taking the pension at 59 results in a 1/3 reduction and actually you only have 45 years at that point rather than 60 it probably halves the value of each year of contribution - so down to low 20k value - still a good deal for the amount it 'costs' and still the combined package is clearly worth a lot more than the private sector alternative but no longer crazy different.