gmpf early retirement penaltiess

daz378

Just hit 55     if retired now   would get   9k and a lump sum   but    i believe  penalties   would reduce this by nearly half    but if hang on till retirement   would get 16k a year.... going to hang on  as long as possible    but im thinking  if i get to 60    im a carer     any gueses how near   to this 16 k  i would be and how much the penalties would reduce that 2    roughly    im a single guy in a council flat   so rents   ok for now... only aiming for basic standard of living  and will do part time work   for luxuries

Dazed_and_C0nfused

There isn't usually any penalty for taking a DB pension early.

If you want the pension to be paid for longer i.e. from 55 instead of 65, then the scheme will normally reduce the pension payable to take account of the fact that you want it paying for an extra 10 years.

It might help if you said what the normal pension age is for your particular scheme.

£16k reduced to £9k would seem a big reduction if NPA was 60 but might be generous if NPA was say 67.

Have you checked your State Pension forecast on gov.uk?  Stopping employment now may mean you don't reach the standard new State Pension amount of £179.60/week without purchasing additional years NI.

elouise01582

If you are a carer and claiming benefits do consider if taking your pension benefits now could affect any means tested benefits.

daz378

Type your comment

daz378

Runs to about 65     and im thinking the earliest  i would take it  is 60   where i hope    it would rise from 9 k to about 13k  and the penalties  for early drawdown  would be reduced to about 20 %    but im only guessing    i am an employed carer   under tupe gross wages of 25k ....having transitioned from being a council carer   to a company care firm...i may be being optimistic that the tupe will last another 5 years

hyubh

daz378 said:

Runs to about 65

Final salary benefits for membership from joining to end of March 2014 = age 65 (though if you joined before the 2006 cutoff for rule of 85 protections, it may be earlier for pre-April 2008 service); CARE benefits for membership after then = your state pension age. Each element would have an early retirement factor applied separately, though outside of a formal flexible retirement you would have to draw all your pension together. 

having transitioned from being a council carer   to a company care firm...i may be being optimistic that the tupe will last another 5 years

Speaking in general terms, if you stay in the role you TUPE'd with, I would expect you eligibility for LGPS membership to continue via the 'admission agreement' the company has with GMPF. Conversely any new role in the company would likely mean losing eligibility.

daz378

I joined scheme in 2001 ....just checked my state pension forecast...incomplete insurance contributions for 5 years  ...no problem  im already at 179. Pound  on existing contributions.....thanks for the info

daz378

Update    my guesses were wildly optimistic   if I retired now  7.5 k a year not realistic   but 5 years later at 60  would only be 9k a year....62  will  be nearly 11k a year possible....67   16k a year     I continue to add to my savings so hopefully  will have a modest lump of around  10k ....I believe you can pay extra to your pension up to 10% from 6%   this is an option  also....but not feeling too secure     as tupe staff leave..they are replaced by staff on more basic contracts