Will "The C word" affect ability to start drawing a DB pension?

ProDave

Like probably most on here, I am pondering how this year is going to work out financially, and looking at options.

I am presently self employed, electrician, and also a (reluctant) landlord.  One or both of those could go base over apex in the next few months.

I have a DB pension which is in all but name a civil service pension.  I intend to draw it at normal retirement, 60, in 3 years time.  But it has the option to draw it earlier with an actuarial reduction of course.  I am looking at that as a reserve, if things get bad, to trigger that into payment early rather than running out of income.

My question is while that option to draw it early exists now, is that likely to be stopped?  I ask because I am also drawing another much smaller DB pension, but when I applied to draw that one early, it was "at the discretion of the trustees" whether they would let you draw it early, and I suspect with investment values trashed, they would probably say no, not now.

Dazed_and_C0nfused

Is it a civil service pension or not?

If it is I would be worried.

ProDave

It's a UKAEA pension, which in all but name is a civil service pension i.e. it's paid by the treasury and does not have an investment fund to support it.

Would you apply to start drawing it now then?

hyubh

Speaking as a random person on the internet...assuming no special terms, I doubt short-term swings in investment values will change policy either way. Drawing a pension early isn't in principle increasing liabilities given the actual reduction.

Dazed_and_C0nfused

Dazed_and_C0nfused said:

Is it a civil service pension or not?

If it is I would be worried.

Sorry, typo, wouldn't be worried.  I suspect the government has bigger concerns than changing the terms of your pension scheme.

Albermarle

hyubh said:

Speaking as a random person on the internet...assuming no special terms, I doubt short-term swings in investment values will change policy either way. Drawing a pension early isn't in principle increasing liabilities given the actual reduction.

Agreed, current situation should have no effect.

ProDave

Thanks. It's good to have it there in reserve to draw early if I need to as a safety net.

hyubh

Missed the UKAEA bit when writing my original reply.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/819697/ukaea-pension-schemes-report-2018-19-web-ready.pdf

Unfunded public sector, i.e. there are no investment values to trash in the first place.

michaels

hyubh said:

Missed the UKAEA bit when writing my original reply.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/819697/ukaea-pension-schemes-report-2018-19-web-ready.pdf

Unfunded public sector, i.e. there are no investment values to trash in the first place.

Yup - fully underwritten by tax revenue so nothing to worry about....