Civil Service Pension - Do these numbers seem correct

mapleoak

I’m 57 and will have completed 39 years service this year. If I work until I’m 60 (almost all in Classic - taper to Alpha this year I think) and should be able to retire on a pension of around £26,000 per annum. I used a “salary calculator” app the other day that suggested I would get around £1950 a month - which is based on no NI but taxed - with the 1250L code. Does that seem about right or is it a different tax code when you retire or are there any other deductions I haven’t factored in?

Thanks for reading.

sammyjammy

Sounds about right based on your numbers.

Paul_Herring

£1,942.81/month on £26K, according to LTTM.

marlot

26,000 per year. Less 12,500 personal allowance. Leaves 13,500 which will be taxed.

Tax on 13,500 at 20 % = 2,700 a year.

So 26,000 a year, less 2,700 tax = £23,300 per year after tax = 1941 a month.

NB: Assumes you don't live in Scotland.

mapleoak

Thanks everyone I actually thought it seemed a lot so thought I’d left some deductions out ��

Paul_Herring

Note that everyone's calculations here are based on you having no other taxable income whatsoever....

e.g. when you get your state pension at 67, that will be effectively taxed at 20% on all of the state pension. What will likely, actually, happen is you'll get your state pension in full without deduction, but your tax code will be reduced to collect the tax due on it via your private pension.

Dazed_and_confused

mapleoak wrote: »

I’m 57 and will have completed 39 years service this year. If I work until I’m 60 (almost all in Classic - taper to Alpha this year I think)

You should check your State Pension forecast on gov.uk.

You need to read past the likely headline of £168.60 to see what you have accrued to 05:04:2019 and understand what you might get if you stop work at 60.

mapleoak

Thanks all - yes I checked State Pension forecast the other day and will get the full £168.60 (or presumably whatever it is by then)

jamesperrett

mapleoak wrote: »

Thanks all - yes I checked State Pension forecast the other day and will get the full £168.60 (or presumably whatever it is by then)

I'd check again - you will only get the full amount if you continue to make NI contributions for the next 4 years as you would have been contracted out until 2016. I was in a similar situation to you (same age and starting year) before I took early retirement and I am still making NI contributions.

mapleoak

Hi JamesPerrett

Yes you’re right - checked again and it says I need to make another 5 years of contributions to get the full £168.60 - so presumably if I went at 60 I’d get a reduced amount - or make a contribution myself.

Dazed_and_confused

Dazed_and_confused wrote: »

You should check your State Pension forecast on gov.uk.

You need to read past the likely headline of £168.60 to see what you have accrued to 05:04:2019 and understand what you might get if you stop work at 60.

:mad:

You wouldn't get a "reduced" amount, you'd get what you were entitled to.