'Alternative' pension on defined benefit scheme

Cobbler_tone

There is an option to take an alternative pension if you are more than one year away from the nominal retirement age. i.e. between 55-59 in the case of my scheme.

This allows a tapered pension to allow for the state pension at 67 to balance to a flat income.

It says you will receive growth on the standard pension but not the additional amount.

Are there any views on how these are generally applied? The financial costs and watch outs?

Marcon

Google on 'pension levelling' (rather than 'alternative') and you'll get plenty of useful info, particularly from schemes which offer this option and have factsheets available on the internet.

How they are 'generally' applied isn't necessarily relevant - you need to know the specifics of how they are applied in your scheme. 

Cobbler_tone

Thanks I've asked for a quote and then can crunch some numbers.

FWIW I only asked as assumed there may be a common(ish) approach taking by most schemes, i.e. front load it 5 years and after 20 years you'd be better off if you hadn't front loaded it...subject to the unknown growth.

A bit like the correction factor on your gas meter...they are all slightly different but give a similar result.

Albermarle

If you search the forum for 'Pension Levelling' a few threads come up.