Worried about renting and retirement

Barny1979

£36k a year and worrying about paying £400 a month rent?

NewShadow

Barny1979 said:

£36k a year and worrying about paying £400 a month rent?

I'm going to be on c. £36k a year - and NOT worried about paying rent... we don't know what the OP might be on until we have their grade/years of service or their CS pension forecast. 

Barny1979

NewShadow said:

Barny1979 said:

£36k a year and worrying about paying £400 a month rent?

I'm going to be on c. £36k a year - and NOT worried about paying rent... we don't know what the OP might be on until we have their grade/years of service or their CS pension forecast. 

Sorry skim read and presumed were the OP

sixtiesgal_2

Hi all, thanks for all of your replies, very helpful and reassuring. I have last year's pension statement in front of me and can give you some details.

My Civil Service grade is EO (Executive Officer/Band C), my annual classic pension is 9,938 and my lump sum is 29,814. Obviously this will go up in August when I get my next statement.

My gross annual salary is 26,892,00.

I hope this is enough information. Thanks again for any advice.

NewShadow

sixtiesgal_2 said:

Hi all, thanks for all of your replies, very helpful and reassuring. I have last year's pension statement in front of me and can give you some details.

My Civil Service grade is EO (Executive Officer/Band C), my annual classic pension is 9,938 and my lump sum is 29,814. Obviously this will go up in August when I get my next statement.

My gross annual salary is 26,892,00.

I hope this is enough information. Thanks again for any advice.

Thanks. 

You've said you've got 32 years of reckonable service and will be working for another 7 years? 

Classic accrues at a rate of 1/80th per year, capped at 40 years, and uses your highest salary from the last three years for the calculation - on top of that you get three times your pension as a lump sum. 

Assuming you don't get any more payrises between now and retirement - which is unlikely - and assuming there aren't any complicating factors like additional contributions or part time working that you've not mentioned, that gives you a CS pension of around: 

• (40 X 26,892)/80= £13,446 

and a lump sum of: 

• (40 X 26,892)/(80x3)= £40,338

If you've also been paying your state pension for the last 32 years - you'll need to get a personal forecast, but it's likely you'll have somewhere close to £9k... that gives you a total annual pension, before tax, of somewhere in the region of £22.5k a year/£1,875 a month plus your lump sum, which is tax free.

It's worth noting you may have some options to invest that lump sum in a way which could generate an income/small additional pension... but you'd be better off posting on the pensions board as I'm on shaky ground once we get beyond the CS schemes... 

*very rough calculations based on the info provided * 

sixtiesgal_2

NewShadow said:

sixtiesgal_2 said:

Hi all, thanks for all of your replies, very helpful and reassuring. I have last year's pension statement in front of me and can give you some details.

My Civil Service grade is EO (Executive Officer/Band C), my annual classic pension is 9,938 and my lump sum is 29,814. Obviously this will go up in August when I get my next statement.

My gross annual salary is 26,892,00.

I hope this is enough information. Thanks again for any advice.

Thanks. 

You've said you've got 32 years of reckonable service and will be working for another 7 years? 

Classic accrues at a rate of 1/80th per year, capped at 40 years, and uses your highest salary from the last three years for the calculation - on top of that you get three times your pension as a lump sum. 

Assuming you don't get any more payrises between now and retirement - which is unlikely - and assuming there aren't any complicating factors like additional contributions or part time working that you've not mentioned, that gives you a CS pension of around: 

• (40 X 26,892)/80= £13,446 

and a lump sum of: 

• (40 X 26,892)/(80x3)= £40,338

If you've also been paying your state pension for the last 32 years - you'll need to get a personal forecast, but it's likely you'll have somewhere close to £9k... that gives you a total annual pension, before tax, of somewhere in the region of £22.5k a year/£1,875 a month plus your lump sum, which is tax free.

It's worth noting you may have some options to invest that lump sum in a way which could generate an income/small additional pension... but you'd be better off posting on the pensions board as I'm on shaky ground once we get beyond the CS schemes... 

*very rough calculations based on the info provided * 

Thanks very much for this. I got it to less but I'm not good at Maths. Is this sum including the state pension too?

NewShadow

sixtiesgal_2 said:

NewShadow said:

sixtiesgal_2 said:

Hi all, thanks for all of your replies, very helpful and reassuring. I have last year's pension statement in front of me and can give you some details.

My Civil Service grade is EO (Executive Officer/Band C), my annual classic pension is 9,938 and my lump sum is 29,814. Obviously this will go up in August when I get my next statement.

My gross annual salary is 26,892,00.

I hope this is enough information. Thanks again for any advice.

Thanks. 

You've said you've got 32 years of reckonable service and will be working for another 7 years? 

Classic accrues at a rate of 1/80th per year, capped at 40 years, and uses your highest salary from the last three years for the calculation - on top of that you get three times your pension as a lump sum. 

Assuming you don't get any more payrises between now and retirement - which is unlikely - and assuming there aren't any complicating factors like additional contributions or part time working that you've not mentioned, that gives you a CS pension of around: 

• (40 X 26,892)/80= £13,446 

and a lump sum of: 

• (40 X 26,892)/(80x3)= £40,338

If you've also been paying your state pension for the last 32 years - you'll need to get a personal forecast, but it's likely you'll have somewhere close to £9k... that gives you a total annual pension, before tax, of somewhere in the region of £22.5k a year/£1,875 a month plus your lump sum, which is tax free.

It's worth noting you may have some options to invest that lump sum in a way which could generate an income/small additional pension... but you'd be better off posting on the pensions board as I'm on shaky ground once we get beyond the CS schemes... 

*very rough calculations based on the info provided * 

Thanks very much for this. I got it to less but I'm not good at Maths. Is this sum including the state pension too?

It's about £22.5k including state pension* - before tax. 

It's about £20,502 a year including state pension* - after tax

Do you know that you don't pay national insurance or pension contributions but do pay income tax when you're retired? 

You currently earn not quite £27k a year, but from that you have to pay tax, national insurance, and pension contributions - I don't know how much you pay for your classic pension, but just taking off the tax and national insurance, you take home somewhere around £1,800 a month. 

After you're retired, then you'll ONLY pay income tax... that means on £22.5k, you'll take home around £1,700 a month. 


*You can check your state pension forecast here for a more accurate estimate: https://www.gov.uk/check-state-pension

* you can check your CS pension benefits here using the retirement modeller: https://members.civilservicepensionscheme.org.uk 

GibbsRule_No3.

60s girl
I had my CSP preserved when we TUPEd but adding the two pensions and the SP we are on about the same per year and you are needing at least £220 a month less than I am for rent and CT. I go out for meals and I like US holidays, (not this year unfortunate!) so I really think you will be fine. I’m allowing roughly £2000 from the lump sum per year, should I need it, hoping not to use that amount every year and that should last 12-15 years well into my 80’s. As renters we can look on the bright side if we need caring for we don’t have the money to pay nursing home fees, except for the yearly Pension money. 

sixtiesgal_2

Thanks for this. I do feel more reassured now. Just that when I worked it out I got it to that I'd be £200 per week worse off than I am now working but if I get the same amount that will be fine.