Access to Defined Benefits Pension

FIREDreamer

Sheba42 said:

dunstonh said:

Realistically, what could I do with 2k per year? 

In 10 years time it could be closer to £3.5k a year.

It makes much more sense to me to take 28k now rather than wait for such a tiny amount that I may not even live to see anyway.  Half of us get cancer now too.  

Nothing you have said so far suggests it makes any sense.   The figures stack up to taking the income being best.

That still makes sense to me. I don't receive that money until I'm 67.  Even if I lived to age 77,  I probably still wouldn't get 28k over the course of those 10 years. If I even lived that long !!

My pension currently sits at 900 per year, so why would I wait,  when I can access 28k right now, while I'm fit and healthy enough to use and enjoy it.  

It seems madness to me why anyone would risk waiting for that money. 

That £900 pa could make all the difference deciding between heating and eating in the future if it is the only non-state pension you have. It should certainly cover an annual gas bill.

Sheba42

FIREDreamer said:

Sheba42 said:

p00hsticks said:

Brie said:

A DB pension should send you a annual or biennial statement that outlines what you might be entitled to at retirement.  

I'm not sure that that's true for DB pensions - I have one now in payment and one still to come and although I got/get updates on how the pension scheme itself is doing (i.e. is it overfunded, underfunded, total funds currently coming in and going out, expected liabilities) I haven't had a statement personal to me in particular since the one I was sent on leaving the company, and was under the impression that I shouldn't expect to receive another until close to the Normal Retirement Age.

I've had one every year since I started my job.  Tells me everything except CETV. 

This stops when you leave and the pension becomes deferred.

I left in 2008 and like I said,  I get a full statement every year !

Sheba42

FIREDreamer said:

Sheba42 said:

dunstonh said:

Realistically, what could I do with 2k per year? 

In 10 years time it could be closer to £3.5k a year.

It makes much more sense to me to take 28k now rather than wait for such a tiny amount that I may not even live to see anyway.  Half of us get cancer now too.  

Nothing you have said so far suggests it makes any sense.   The figures stack up to taking the income being best.

That still makes sense to me. I don't receive that money until I'm 67.  Even if I lived to age 77,  I probably still wouldn't get 28k over the course of those 10 years. If I even lived that long !!

My pension currently sits at 900 per year, so why would I wait,  when I can access 28k right now, while I'm fit and healthy enough to use and enjoy it.  

It seems madness to me why anyone would risk waiting for that money. 

That £900 pa could make all the difference deciding between heating and eating in the future if it is the only non-state pension you have. It should certainly cover an annual gas bill.

Yes it might pay a bill but I have a full state pension so I'm not going to starve lol.

I'd much rather have a lovely new kitchen and bathroom  😁👍

Lemon_dr1zzle

If you left in 2008 then your normal retirement age is 65 not 67. 

Sheba42

Lemon_dr1zzle said:

If you left in 2008 then your normal retirement age is 65 not 67. 

Either way,  what I said still stands correct.  

FIREDreamer

Sheba42 said:

FIREDreamer said:

Sheba42 said:

p00hsticks said:

Brie said:

A DB pension should send you a annual or biennial statement that outlines what you might be entitled to at retirement.  

I'm not sure that that's true for DB pensions - I have one now in payment and one still to come and although I got/get updates on how the pension scheme itself is doing (i.e. is it overfunded, underfunded, total funds currently coming in and going out, expected liabilities) I haven't had a statement personal to me in particular since the one I was sent on leaving the company, and was under the impression that I shouldn't expect to receive another until close to the Normal Retirement Age.

I've had one every year since I started my job.  Tells me everything except CETV. 

This stops when you leave and the pension becomes deferred.

I left in 2008 and like I said,  I get a full statement every year !

Interesting. I left 2 defined benefit schemes in 1993 and 2007. I got no further personalised correspondence (only general scheme circulars) until I claimed them early in 2021 and 2019 respectively. Had the LTA not existed I would have left both until normal retirement age, but that’s just unfortunate.

I could work out the updated benefits myself each year using government revaluation orders - it wasn’t a difficult calculation.

Sarahspangles

FIREDreamer said:

Sheba42 said:

p00hsticks said:

Brie said:

A DB pension should send you a annual or biennial statement that outlines what you might be entitled to at retirement.  

I'm not sure that that's true for DB pensions - I have one now in payment and one still to come and although I got/get updates on how the pension scheme itself is doing (i.e. is it overfunded, underfunded, total funds currently coming in and going out, expected liabilities) I haven't had a statement personal to me in particular since the one I was sent on leaving the company, and was under the impression that I shouldn't expect to receive another until close to the Normal Retirement Age.

I've had one every year since I started my job.  Tells me everything except CETV. 

This stops when you leave and the pension becomes deferred.

I can access an annual statement for each of my deferred LGPS schemes in the relevant scheme portal. One of the scheme portals services multiple larger LGPS, I think schemes which don’t automatically generate one must be a minority. One of the schemes can also generate forecasts on demand.

Marcon

FIREDreamer said:

Sheba42 said:

FIREDreamer said:

Sheba42 said:

p00hsticks said:

Brie said:

A DB pension should send you a annual or biennial statement that outlines what you might be entitled to at retirement.  

I'm not sure that that's true for DB pensions - I have one now in payment and one still to come and although I got/get updates on how the pension scheme itself is doing (i.e. is it overfunded, underfunded, total funds currently coming in and going out, expected liabilities) I haven't had a statement personal to me in particular since the one I was sent on leaving the company, and was under the impression that I shouldn't expect to receive another until close to the Normal Retirement Age.

I've had one every year since I started my job.  Tells me everything except CETV. 

This stops when you leave and the pension becomes deferred.

I left in 2008 and like I said,  I get a full statement every year !

Interesting. I left 2 defined benefit schemes in 1993 and 2007. I got no further personalised correspondence (only general scheme circulars) until I claimed them early in 2021 and 2019 respectively. Had the LTA not existed I would have left both until normal retirement age, but that’s just unfortunate.

I could work out the updated benefits myself each year using government revaluation orders - it wasn’t a difficult calculation.

It's one of the differences between private and public sector schemes. The latter waste a lot of money sending people annual statements for pensions which are in deferment, which typically hit the bin unread, judging by some of the comments on this website!

FIREDreamer

Sarahspangles said:

FIREDreamer said:

Sheba42 said:

p00hsticks said:

Brie said:

A DB pension should send you a annual or biennial statement that outlines what you might be entitled to at retirement.  

I'm not sure that that's true for DB pensions - I have one now in payment and one still to come and although I got/get updates on how the pension scheme itself is doing (i.e. is it overfunded, underfunded, total funds currently coming in and going out, expected liabilities) I haven't had a statement personal to me in particular since the one I was sent on leaving the company, and was under the impression that I shouldn't expect to receive another until close to the Normal Retirement Age.

I've had one every year since I started my job.  Tells me everything except CETV. 

This stops when you leave and the pension becomes deferred.

I can access an annual statement for each of my deferred LGPS schemes in the relevant scheme portal. One of the scheme portals services multiple larger LGPS, I think schemes which don’t automatically generate one must be a minority. One of the schemes can also generate forecasts on demand.

Mine were both private sector and they both closed for future accrual after I left. No online portals. Maybe that makes a difference.

Sarahspangles

Sheba42 said:

FIREDreamer said:

Sheba42 said:

dunstonh said:

Realistically, what could I do with 2k per year? 

In 10 years time it could be closer to £3.5k a year.

It makes much more sense to me to take 28k now rather than wait for such a tiny amount that I may not even live to see anyway.  Half of us get cancer now too.  

Nothing you have said so far suggests it makes any sense.   The figures stack up to taking the income being best.

That still makes sense to me. I don't receive that money until I'm 67.  Even if I lived to age 77,  I probably still wouldn't get 28k over the course of those 10 years. If I even lived that long !!

My pension currently sits at 900 per year, so why would I wait,  when I can access 28k right now, while I'm fit and healthy enough to use and enjoy it.  

It seems madness to me why anyone would risk waiting for that money. 

That £900 pa could make all the difference deciding between heating and eating in the future if it is the only non-state pension you have. It should certainly cover an annual gas bill.

Yes it might pay a bill but I have a full state pension so I'm not going to starve lol.

I'd much rather have a lovely new kitchen and bathroom  😁👍

This isn’t really a pension question any more, it’s a household budget question.

If you convert an index linked (inflation proofed) future pension into cash then you’re borrowing from your future self. If you use that cash to upgrade your current home, is that home going to be suitable/affordable for your future needs and means? Would you get the cash back if you have to downsize? Another consideration for a couple is whether each could afford to stay in that home if widowed.

It might be preferable in terms of future income for your OH to dip into his pension. If you don’t get enough pension to use your personal tax allowance, but he’s paying 20% on more of his, you’d be losing out every year.