Low annuity rate values??

norrisg24

german_keeper said:

Do you know the reduction rates for tappng into this £11025 before 67 ??

https://www.civilservicepensionscheme.org.uk/media/538002/csops_erf-and-lrf-factors-and-guidance-01082019.pdf

Also calculators to help on MyCSP website

Thanks in the simplest of terms i read this as retirement at 55 when your retirement age is 67 = roughly 0.5 or half pensionable value.?

german_keeper

norrisg24 said:

german_keeper said:

Do you know the reduction rates for tappng into this £11025 before 67 ??

https://www.civilservicepensionscheme.org.uk/media/538002/csops_erf-and-lrf-factors-and-guidance-01082019.pdf

Also calculators to help on MyCSP website

Thanks in the simplest of terms i read this as retirement at 55 when your retirement age is 67 = roughly 0.5 or half pensionable value.?

Yes, 0.548 or 54.8% of accrued pension.

jamesd

norrisg24 said:

If youd use 3.0% at 55, what % would you use at 60, 65 and 67 years?

First consider life expectancy, is thirty years enough? I'd use between 3.2 and 3.7 unless short life expectancy was anticipated or bonds and cash greater than 50% was planned.

But at 65 and 67 the first thing I'd look at is state pension deferral because this increases the state pension by 5.8% per year deferred, increasing with uncapped CPI once taken. That's more than normal life expectancy drawdown or annuity rates. To use this you defer claiming your state pension and replace the income with money drawn from your capital. There's no spousal pension from this but a spouse could defer themselves.