Take BT pension now?

EP456

“Well yes, all they can do is base their calculations on the rules / law as they are today.

If legislation is passed sometime in the future that affects that calculation then, as it says, it wasn't guaranteed.”

Yes, that’s what I meant by too many varying factors. Thanks for your response.
I am a Section B member and it’s all Final Salary

robin61

EP456 wrote: »

Hello, I am in a similar situation to the OP. I called BT Pension today and they confirmed that the actuarial reduction is currently 3%.

That's good news. I took mine at age 57 last year. The rate was previously around 6%. So they more or less cut it in half. That means it takes twice as long as it would have taken to make a profit out of deferring. I was very lucky that they changed it just before I retired. Also be aware it might not stay at this rate forever.

borders

I took my deferred BT pension last year at 56 with a 12% actuarial reduction. Lower pension but 4 years more money. If I waited until I was 60 and took the bigger pension, then I would be 89 before I made up the money I get from the extra 4 years. I would rather have the money now. No brainer for me.

robin61

borders wrote: »

I took my deferred BT pension last year at 56 with a 12% actuarial reduction. Lower pension but 4 years more money. If I waited until I was 60 and took the bigger pension, then I would be 81 before I made up the money I get from the extra 4 years. I would rather have the money now. No brainer for me.

Yes. I was planning to defer to age 60 originally when the reduction was around 6% per year. But reducing it so significantly was a game changer. No regrets whatsoever.

tigerspill

EP456 wrote: »

Hello, I am in a similar situation to the OP. I called BT Pension today and they confirmed that the actuarial reduction is currently 3%. I am 57 and received a quotation for taking my pension this year. I intend to keep working in my current role for another 3 years (LGPS), and then retire at 60 taking both pensions together.

Be very careful of what you are told by BTPS as I have much experience of them being wrong most of the time.

Not sure if you are in Section B or C.

The reductions are not a flat 3% - they are different for each year.

The current section C reductions are (sorry the formatting isn't great) -
Pre 2009
50 51 52 53 54 55 56 57 58 59 60
30.9% 28.6% 26.1% 23.5% 20.7% 17.8% 14.7% 11.4% 8.4% 4.0% 0.0%
Difference 2.3% 2.5% 2.6% 2.8% 2.9% 3.1% 3.3% 3.0% 4.4% 4.0%

Post 2009
50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65
41.9% 40.1% 38.2% 36.2% 34.1% 31.8% 29.4% 26.9% 24.3% 21.4% 18.4% 15.2% 11.8% 8.1% 4.2% 0.0%
Difference 1.8% 1.9% 2.0% 2.1% 2.3% 2.4% 2.5% 2.6% 2.9% 3.0% 3.2% 3.4% 3.7% 3.9% 4.2%

I left on a scheme earlier this year and had planned to wait until I was 60 be fore taking. But with these reduced reductions, it is a no brainer for me to take at 55.

EP456

Hi Tigerspill, I am a Section B, and left under a release scheme in 2006. I can’t decide, so may just wait until next year and ask for another quotation then....

tigerspill

EP456 wrote: »

Hi Tigerspill, I am a Section B, and left under a release scheme in 2006. I can’t decide, so may just wait until next year and ask for another quotation then....

Unfortunately I don't have the Section B reductions, but I think they are marginally better than Section C ones.
I think they might have been posted a few months ago. I will see if I can find them.