Civil Service Pension - Bomb proof ?

tigerspill

Increased from how much?  
£90 means nothing without know your "before increase" amount.

Scrounger

tigerspill said:

Increased from how much?  
£90 means nothing without know your "before increase" amount.

£90/0.031 = £2,903.23 ?

Scrounger

p00hsticks

TELLIT01 said:

 I'm simply making the point that there are many employers out there who had pension schemes equally as good as that.

Again, I'd suggest you are possibly exaggerating a tad.
Although much more common than now, I doubt that there were ever many private company DB pensions that could match the generosity of the comparable public sector schemes of the time. And as others have pointed out, with no cap to the index linking on Civil Service Pensions (which unitl this thread I wasn't aware was the case), then with the Bank of England forecasting a possible inflation rate of 10%, next year your increase in percentage terms could well be considerably higher than that paid by any private sector pension. 

michaels

Trying to guess the inflation rate this September is making my calculations on how much Extra Pension I can buy this year without exceeding the annual allowance kinda interesting.  Anyone know what the current market consensus for September CPI is?

saucer

michaels said:

Trying to guess the inflation rate this September is making my calculations on how much Extra Pension I can buy this year without exceeding the annual allowance kinda interesting.  Anyone know what the current market consensus for September CPI is?

I’m wondering the same thing. I saw something yesterday predicting 8% for Oct. It would be interesting to know what the markets are factoring in

michaels

saucer said:

michaels said:

Trying to guess the inflation rate this September is making my calculations on how much Extra Pension I can buy this year without exceeding the annual allowance kinda interesting.  Anyone know what the current market consensus for September CPI is?

I’m wondering the same thing. I saw something yesterday predicting 8% for Oct. It would be interesting to know what the markets are factoring in

Just seen a forecast for 8.9%...for April!

nigelbb

Thrugelmir said:

My DB scheme has a fixed annual revaluation of 5%. Swings and roundabouts. 

Massively better than the 0.5% rise for public sector pensions last year & the 3.1% this year.

Secret2ndAccount

Governor of the Bank of England spoke today:
"CPI inflation is expected to rise further over the remainder of the year, to just over 9% in 2022 Q2 and averaging slightly over 10% at its peak in 2022 Q4"
So 9% according to the man in charge. He says it's largely due to energy prices, and will return quite quickly to more normal levels. Could be below 2% within 2 years.

Quite a readable report here:
https://www.bankofengland.co.uk/monetary-policy-report/2022/may-2022

QrizB

TELLIT01 said:

What I should have added is that I have a pension from another former employer which has increased by more than the CS pension.

You still haven't told us what the value of your CS pension is, which scheme you were in or any of the other that would be needed to judge whether your CS pension has, or hasn't, done better than you "other" pension.

According to this post you worked for the CS for eight years, this post for seven. You were with the DWP, contacting claimants on the phone, in a team whose annual salary started with a 1 not a 2.

Eight years on a salary of £20k in a DB scheme like Classic or PCSPS with a 1/80 accrual rate would earn a pension of £2k pa. Allowing for the huge assumptions I've made, and for indexing since you left, it could now be worth £2900 pa which is consistent with a 3.1% uplift being £90 pa.

SouthCoastBoy

Secret2ndAccount said:

Governor of the Bank of England spoke today:
"CPI inflation is expected to rise further over the remainder of the year, to just over 9% in 2022 Q2 and averaging slightly over 10% at its peak in 2022 Q4"
So 9% according to the man in charge. He says it's largely due to energy prices, and will return quite quickly to more normal levels. Could be below 2% within 2 years.

Quite a readable report here:
https://www.bankofengland.co.uk/monetary-policy-report/2022/may-2022

I would be very surprised if anywhere near 2% in 2 years. I think inflation will be over 5% for the next 4 or 5 years. Can see it getting higher than 9% by q3 as well. So far the boe inflation forecasting has not been great, https://www.bankofengland.co.uk/monetary-policy-report/2021/november-2021