Local Government Rule of 85 pension

Silversmith58

I'm 58 and wondering if the reductions on my pension pre 2008 reductions would be too severe and be better just staying till 60th birthday.

doingitanyway

I am looking at this too. In the information sent to me it was 5.1 for one year early and 9.9 for 2 years early, but a few months, so for example 9 months instead of a year, can make a difference to the percentage.  

Do you have a reason for wanting to take the income before 60?

Silversmith58

I have few medical issues but none that would stop me from going to till 60..just enquiring if anyone could provide info..

Silvertabby

It really depends on how much pre 2008 pension you have.  The bigger the pension, the bigger the reduction in £s.

Silversmith58

Silvertabby my pension started in 1993..

Silversmith58

I was thinking going on October 2023 and missing out a winter instead of April 2024. 

Silvertabby

Silversmith58 said:

Silvertabby my pension started in 1993..

Then a substantial amount of pre 2008 pension?  Taking it now would reduce your pre 2008 benefits by approx 9%.  Plus a 7 year reduction for your 2008 to 2014 benefits, and a 8/9 year reduction for your post 2014 benefits. 

And that's after you factor in loss of 2 years service/pension rights if you retire at 58 instead of working until 60. 

Silversmith58

Silvertabby so best to see it out then as if I stay till 60..no reduction on pre 2008 part.

Silvertabby

Silversmith58 said:

Silvertabby so best to see it out then as if I stay till 60..no reduction on pre 2008 part.

If you can.  Those 2 years will make quite a difference. 

Silversmith58

Thanks for your kind help Silvertabby. 

saucer

There is also the option of course of finishing early but not taking the pension until 60 if you have alternative money to live on until then.  Then you miss out on a couple of years of post 2014 contributions but have the 2008 bit unreduced, unless I am misstaken