Actuarial reduced state pension

drumtochty

Silvertabby wrote: »

However, some people on these boards have personal/occupational pensions of over £30K each!

Does not make them a bad person at all!

Silvertabby

drumtochty wrote: »

Does not make them a bad person at all!

Er - I never said they were ! They must have worked hard for those pensions and all the best to them. Mr S and I certainly can't grumble - our Armed Forces pensions have been in payment since our 40s.

bostonerimus

atush wrote: »

It does work with an American SS pension, you can take it early at a reduced rate. I think you can take it at 62

Yes that is true. US Social Security, which is the equivalent of the UK State Pension, can be started at age 62, four years sooner than the nominal retirement age of 66. You'll obviously get a smaller cheque if you start at 62 eg.

Age SS monthly amount
62 $1980
66 $3000
70 $4571

Also the US IRA retirement accounts (equivalent to the SIPP) are usually available at age 59.5, but you can access them before that and then you pay a 10% extra tax penalty. You can avoid that tax penalty if you set up your withdrawals to comply with some minimum withdrawal amounts for a certain number of years set by the tax regulator.

drumtochty

Approx. 11% increase per year for deferring, I assume that will be reduced in the near future.

Brynsam

Can you imagine trying to explain that option to the Great British Public...?

atush

drumtochty wrote: »

Approx. 11% increase per year for deferring, I assume that will be reduced in the near future.

I thought it had been already

nigelbb

drumtochty wrote: »

Approx. 11% increase per year for deferring, I assume that will be reduced in the near future.

atush wrote: »

I thought it had been already

It was reduced three years ago.

If your pension date was on or after 6th April 2016 the State Pension increases by the equivalent of 1% for every 9 weeks you defer. This works out as just under 5.8% for every 52 weeks.

If your pension date was before 6th April 2016 the State Pension increases by the equivalent of 1% for every 5 weeks you defer. This works out as 10.4% for every 52 weeks.

drumtochty

Sorry guys it is specsavers for you guys first thing in the morning, I was commenting on the system in the US not the UK with the info posted by bostonerimus.

nigelbb

drumtochty wrote: »

Sorry guys it is specsavers for you guys first thing in the morning, I was commenting on the system in the US not the UK with the info posted by bostonerimus.

The normal forum convention if referring to a specific reply is to quote the relevant section (as I have done here). Aside from that MSE is a UK site so why on earth would we expect you to be discussing US pensions unless you explicitly mention this?