Civil Service Pension - Leaving Early

DE_612183

marky_b_2 said:

DE_612183 said:

Thanks @Dazed_and_C0nfused - I'm 60 now and have worked for CS for jsut over a year - I was planning on leaving at about 2 years and taking the transfer -however it looks like now i will be there for possibly 2 and a half years - so when I'm about 62 - what I don't want is to the have to wait another 5 years to get the CSP - I'd much prefer to get a CETV and then take as draw down as and when I want.

I just want to make sure that's possible - if not I'll have to leave on 1 year 364 days!

You can take Alpha before State pension age but it will be reduced for taking it early 

I don't want to take it early and it to pay out for the rest of my life - as I'll only have about 2.5 years of contributions it will only be worth about £50 a month - I want to take the CETV and use it before I'm 67 to get the best use out of it.

QrizB

DE_612183 said:

marky_b_2 said:

DE_612183 said:

Thanks @Dazed_and_C0nfused - I'm 60 now and have worked for CS for jsut over a year - I was planning on leaving at about 2 years and taking the transfer -however it looks like now i will be there for possibly 2 and a half years - so when I'm about 62 - what I don't want is to the have to wait another 5 years to get the CSP - I'd much prefer to get a CETV and then take as draw down as and when I want.

I just want to make sure that's possible - if not I'll have to leave on 1 year 364 days!

You can take Alpha before State pension age but it will be reduced for taking it early 

I don't want to take it early and it to pay out for the rest of my life - as I'll only have about 2.5 years of contributions it will only be worth about £50 a month - I want to take the CETV and use it before I'm 67 to get the best use out of it.

£50 a month is £600 a year.

To accrue that after 2.5 years of accrual at 2.32% would suggest an annual salary of £10340 a year. Are you only working part-time on NMW?

DE_612183

QrizB said:

DE_612183 said:

marky_b_2 said:

DE_612183 said:

Thanks @Dazed_and_C0nfused - I'm 60 now and have worked for CS for jsut over a year - I was planning on leaving at about 2 years and taking the transfer -however it looks like now i will be there for possibly 2 and a half years - so when I'm about 62 - what I don't want is to the have to wait another 5 years to get the CSP - I'd much prefer to get a CETV and then take as draw down as and when I want.

I just want to make sure that's possible - if not I'll have to leave on 1 year 364 days!

You can take Alpha before State pension age but it will be reduced for taking it early 

I don't want to take it early and it to pay out for the rest of my life - as I'll only have about 2.5 years of contributions it will only be worth about £50 a month - I want to take the CETV and use it before I'm 67 to get the best use out of it.

£50 a month is £600 a year.

To accrue that after 2.5 years of accrual at 2.32% would suggest an annual salary of £10340 a year. Are you only working part-time on NMW?

Ok, so I did generalise - but my 2 years ( on about 50k ) gives me about £100 a year - but if I take that 5 years early it gets chopped by about 10% per year ( compound ) so perhaps it's a bit more..

marky_b_2

P2ER68 – Early payment reduction factors for NPA/EPA 68 for Alpha

Age at early retirement (complete years and months, ignoring part months)

Age 62
0.727
0.730
0.733
0.736
0.739
0.742
0.745
0.748
0.751
0.754
0.757
0.760

Each figure is plus 1 month after Age 62 if your State pension age is 68

I think this is the most up to date figures

FIREDreamer

DE_612183 said:

QrizB said:

DE_612183 said:

marky_b_2 said:

DE_612183 said:

Thanks @Dazed_and_C0nfused - I'm 60 now and have worked for CS for jsut over a year - I was planning on leaving at about 2 years and taking the transfer -however it looks like now i will be there for possibly 2 and a half years - so when I'm about 62 - what I don't want is to the have to wait another 5 years to get the CSP - I'd much prefer to get a CETV and then take as draw down as and when I want.

I just want to make sure that's possible - if not I'll have to leave on 1 year 364 days!

You can take Alpha before State pension age but it will be reduced for taking it early 

I don't want to take it early and it to pay out for the rest of my life - as I'll only have about 2.5 years of contributions it will only be worth about £50 a month - I want to take the CETV and use it before I'm 67 to get the best use out of it.

£50 a month is £600 a year.

To accrue that after 2.5 years of accrual at 2.32% would suggest an annual salary of £10340 a year. Are you only working part-time on NMW?

Ok, so I did generalise - but my 2 years ( on about 50k ) gives me about £100 a year - but if I take that 5 years early it gets chopped by about 10% per year ( compound ) so perhaps it's a bit more..

2.32% x 2 x £50,000 = £2,320 pa or nearly £200 per month.

A nice boost to the state pension?

EDIT: Taken 5 years early, maybe £1,800 pa or £150 per month.

DE_612183

marky_b_2 said:

P2ER68 – Early payment reduction factors for NPA/EPA 68 for Alpha

Age at early retirement (complete years and months, ignoring part months)

Age 62
0.727
0.730
0.733
0.736
0.739
0.742
0.745
0.748
0.751
0.754
0.757
0.760

Each figure is plus 1 month after Age 62 if your State pension age is 68

I think this is the most up to date figures

Thanks - my date is 67

marky_b_2

Age 62
0.76
0.764
0.767
0.771
0.774
0.777
0.781
0.784
0.788
0.791
0.794
0.798

State pension age 67 figures

DE_612183

marky_b_2 said:

Age 62
0.76
0.764
0.767
0.771
0.774
0.777
0.781
0.784
0.788
0.791
0.794
0.798

State pension age 67 figures

So, does this say that if I took my pension aged 62 - I would get instead of the approx £200 per month ( as per @FIREDreamer figures ) I would get 0.798 of that - or £159.60 per month?

marky_b_2

Age 62 = your annual pension figure * 0.76
Age 62 plus 1 month = 0.764

all the way down to 

Age 62 plus 11 months = 0.798

also, if you worked 2.5 years, your annual pensionable figure would be higher than the example as that is only calculated on 2 years

GunJack

And don't forget the CPI rises per year in deferment, so will be even more by the time you take it...and it wil increase annually by the same, so even 2.5 years service will give you more guaranteed income than you realise.