Take BT pension now?

Ellana

Hello
Just grateful for peoples thoughts!
I will be 58 in January (woo hoo!), I currently work for a large food retail business doing a job that requires constant lifting, and/or repetitive movement - this is slowly impacting on my health.

I left BT in 2002 under the release scheme, I worked for them for 22/23 years. I requested a pension forecast for future planning purposes and they have quoted me figures for taking my pension in 3 months - which to be honest I had not even thought of. It was more than I expected and would make life a lot easier, I could reduce my hours, but would not stop work for 3/4 years as we have 1 in second year of uni and another heading there next year.
There have been no contributions to the pension since 2002 so only increases would be inflation - is this likely to make much difference in 2 years?

Am I getting excited too early? I never thought I would be excited about my pension :rotfl::rotfl:
Many thanks for any responses :T

Browntoa

Most of the BT workers I know have been taking theirs between 55 - 60. Their lump sums and redundancy payment tide them over untill state pension age

Ellana

Thanks Browntoa
We would review my situation as we go along, but yes it will certainly tide us over until sp age.
My only concern is would it affect my pension much taking it 2 years early, apart from inflation I can't think it will so might as well make life a little easier now if we can.

german_keeper

I am a partially retired Civil Servant since April this year, now just working Tuesday, Wednesday and Thursday. My mum has dementia so I wanted to help with her care and also spend more time with her while she still knows who I am!

Because I was 54 at the time I had thought the reduction on my pension would scupper my plans. I had to completely revamp my retirement plans but I couldn't believe how well it all stacked up. Best decision I ever made so if you think it all adds up I would say go for it. You can't put a price on 4 day weekends!

Not sure I understand your question about inflation. I would assume the forecast you have been given is what your pension will be in January and then I assume it would have annual CPI increases applied. You should probably confirm that.

One other thing that you may not be aware of, you don't pay NI on pension. My pension and PT wage is about £20 per month less than FT wage but because I don't pay NI on my pension I am about £80 per month better off.

nigelbb

german_keeper wrote: »

One other thing that you may not be aware of, you don't pay NI on pension. My pension and PT wage is about £20 per month less than FT wage but because I don't pay NI on my pension I am about £80 per month better off.

NI is a tax on earned income at 12% for basic rate & 2% higher rate. You don't pay NI at all once you are past state pension age which is a very nice income boost if you continue working.

Ellana

Hi German keeper,

Your reply is so useful- thank you!

My mum also has dementia and has been in a home for 5 years now, mum was in sheltered housing for a good few years and managed well with family assistance and homecare visits - sadly she became a danger to herself. A home was not what we wanted, but has worked really well for her most importantly- and has obviously taken a lot of pressure off us ( mum has not known us for quite a while now - but is happy in her little world). It is really good to spend the extra time with your mum now, and wonderful that your pension helps you to do just that.

I had no idea about the NI situation, so that helps.

Many thanks for your help ��

Ellana

Very handy to know, thanks Nigelbb

xylophone

I will be 58 in January (woo hoo!), I currently work for a large food retail business doing a job that requires constant lifting, and/or repetitive movement - this is slowly impacting on my health.

Then for this reason alone, taking the pension and reducing your hours seems an excellent idea.

Have you obtained a state pension statement?

https://www.gov.uk/check-state-pension

Ellana

Thanks xylophone! I have just done a check via your link, so fully aware now ��

robin61

Ellana wrote: »

Hello
Just grateful for peoples thoughts!
I will be 58 in January (woo hoo!), I currently work for a large food retail business doing a job that requires constant lifting, and/or repetitive movement - this is slowly impacting on my health.

I left BT in 2002 under the release scheme, I worked for them for 22/23 years. I requested a pension forecast for future planning purposes and they have quoted me figures for taking my pension in 3 months - which to be honest I had not even thought of. It was more than I expected and would make life a lot easier, I could reduce my hours, but would not stop work for 3/4 years as we have 1 in second year of uni and another heading there next year.
There have been no contributions to the pension since 2002 so only increases would be inflation - is this likely to make much difference in 2 years?

Am I getting excited too early? I never thought I would be excited about my pension :rotfl::rotfl:
Many thanks for any responses :T

I retired from BT in August 2018 aged 57 and took my pension. I had previously thought I would defer it until I was 60 but just before I left BT significantly improved the actuarial reduction rates in our favour. I am not sure what they are now but if I was you I would contact the administrators and ask them what the current rates are. Hopefully they are still as advantageous as they were last year.

mapleoak

I am a civil servant, will be 57 next year and will have 39 years continuous service - am seriously contemplating partial retirement as have heard similar stories around the benefits of a shorter working week and the (relatively) small difference between net income - once things like tax, NI, decreased travel costs etc are taken into account - so it’s good to hear it can be a good thing.