Help with Pensions.

Bluebird09

Hi all,
I feel like I'm sleepwalking into a retirement nightmare and would appreciate some help/advice please. 
A civil servant since 1993, never promoted. I have caring responsibilies and am disabled myself, which means I am part time and only earning £12k per year.
My Classic pension is frozen and is appprox £5k with £15k lump sum that I can take at aged 60, which would mean reducing my hours even further. 
I'm in the Alpha pension and since 2015's enrolement have only earned £1,700.
I'm so worried about the future. I've looked at the added pension options and done online calculators, but with amount I could input it barely makes any different. 
I know my options are extremely limited, and I don't know what I can do to improve the situation.

Dazed_and_C0nfused

Your Classic pension isn't frozen, it will be based on your final salary when you retire.  Possibly not huge increases but it isn't frozen at the 2015 amount.

Have you head of the McCloud court case?  This mean you will be put back into Classic for the period 2015 to 2022 and when you come to retire have the option to move to Alpha for that period if you wish.

Have you checked your State Pension forecast on gov.uk.  You must read the whole thing, not just the likely headline of £175.20.  You will probably be able to reach £175.20 if you continue working a few more years so that is £9.1k pension from age 67/68.

How much money do you have available each month for additional contributions?

Nebulous2

How old are you?  When would you intend to retire? Have you done a state pension forecast? How much income would you need in retirement? 

If you get a full state pension at your retirement age, you would be earning more than you are now. If it is enough for you now, would it not be enough for you then? 

Bluebird09

Hi, and thank you for your reply.
I had thought the pension was frozen, and now I'm a little worried as my earnings are actually less than in 2015, does that mean I could potentially have less than the forecasted £5k per year at 60?
Yes I've been following the McCloud judgement and wouldn't know whether it would be more beneficial for me to elect to put those years in Alpha back into my Classic pension. Do you think this might be better in my situation?
Yes I think I stand to collect the full state pension if I continue to work to retirement (but I will need to clarify that also). Healthwise I do wonder if I will make it that far!
I have approx £100 per month I could add in contributions.

Dazed_and_C0nfused

Classic isn't based on what you earn, it is your final salary.  The full time equivalent.

Have you accepted a lower grade role?

There will no doubt me more information about McCloud in due course and you don't have to decide anything until you come to retire.

The best thing to do with the £100 will depend on when you want to retire and if you need it is a permanent pension or maybe just something to bridge a gap i.e. stop work at 65 and need funds until your State Pension starts but don't need it to continue once your State Pension starts.

Bluebird09

Hi, sorry forgot to mention I am 52, and I'd love to retire as soon as reasonably possibe (I had thought aged 62 when I had taken out my mortgage) but I suspect realistically that won't be possible. 

tacpot12

Do you have any pensions prior to 1993? 

Bluebird09

I am just AO grade.

Dazed_and_C0nfused

Bluebird09 said:

I am just AO grade.

Not sure exactly what that means but is your full time equivalent salary more now that it was in 2015 or less?

Bluebird09

Sso sorry, it's Admin Officer, so just above admin asst. My salary in 2015 was actually more than it is now as I had to reduce my hours in 2016 due to health problems. 

Bluebird09

No pensions prior to 1993.