Pension advice

Aaron_1977

Hi first time post here.
I just wondered if anyone could shed some light on a question I'm pondering.
I have a DB pension with my company that I've been paying into since age 28. I'm now 42.
My last statement April last year estimated a retirement pension of about £18.7K/annum at 65.
Thing is I'd really like to finish at 60 but wondered how financially viable it might be.
I contacted my pension company and they said they can't give such projections until I'm 50.
I appreciate that this means paying into the pension 5 less years and drawing it for 5 more years. Does this mean I'd be hit with a double whammy in terms of reduction.
In my details it says no reduction in pension from 60 (£6000/yr accrued by last April's statement)
Does this mean whatever id built up by 60 is the same as I'd receive from 65 if I stopped paying in at 60 but drew it from 65. That would seem rather generous if it does.
I wondered if anyone might have had a similar situation and could give me an idea of a ballpark figure.

Thanks in advance for any help.

Aaron

Dazed_and_confused

I appreciate that this means paying into the pension 5 less years and drawing it for 5 more years. Does this mean I'd be hit with a double whammy in terms of reduction

Sort of. You won't have built up as much because you have five years less service. But the reduction will normally be based on what you have earned so far i.e. upto being 60.

In my details it says no reduction in pension from 60 (£6000/yr accrued by last April's statement)
Does this mean whatever id built up by 60 is the same as I'd receive from 65 if I stopped paying in at 60 but drew it from 65. That would seem rather generous if it does.

It is possible that it is that generous. But you would normally get some element of inflation increases so whatever you had earned at age 60 would be a bit more by the time you got to 65.

But that is all dependent on the rules specific to your scheme.

Marcon

Aaron_1977 wrote: »

In my details it says no reduction in pension from 60 (£6000/yr accrued by last April's statement)
Does this mean whatever id built up by 60 is the same as I'd receive from 65 if I stopped paying in at 60 but drew it from 65. No. It means that although the scheme's normal retirement age is 65, you could draw your pension at any time from the age of 60 without any reduction for early retirement. You do need to check if this applies only to members who are still in active membership (i.e. still building up benefits in the scheme) or to deferred members as well (those who have left active membership of the scheme). Find out too whether you still need to be in employment with your current employer to get the benefit of thisThat would seem rather generous if it does. It's very generous anyway, given that early retirement factors are typically around 5% for each year you take your pension before the scheme's normal retirement age
I wondered if anyone might have had a similar situation and could give me an idea of a ballpark figure. Impossible to guess. Much depends on how your salary increases between now and the time you start to draw your benefits.

Please see above.