CS Alpha early retirement factors

NedS

kassy64 said:

My point still stands regardless of the UK life expectancy that google returns. Whatever way you look at it, it is significantly less than the 88 years that was previously mentioned by previous poster regarding taking pension 1,2 or 3 months early (unless he/she has a crystal ball) !

Taking at 1 month early, I don't need a crystal ball as I am already pretty certain I will not live to 109, whereas I have around a 50:50 chance of reaching my late eighties. Why would I take the longevity risk for no extra gain when I don't need to? Taking at 1 month early would give a better overall return with zero longevity risk due to the anomaly in reduction factors I have highlighted.

hugheskevi

kassy64 said:

My point still stands regardless of the UK life expectancy that google returns. Whatever way you look at it, it is significantly less than the 88 years that was previously mentioned by previous poster regarding taking pension 1,2 or 3 months early (unless he/she has a crystal ball) !

Life expectancy actually isn't significantly less than 88 years. There are also selection effects to be taken into consideration - someone with a DB scheme is likely to live longer than someone without (due to factors such as the type of employment that has DB provision, demonstration that they were able to work for at least 2+ years, wealth effect, etc).

The Civil Service Pension Scheme's latest Valuations contained the following life expectancy assumptions: