CS Classic Pension - considering partial retirement (anyone able to help with calculations?)

dizzydusty

Hi,  I am considering partial retirement, but I am struggling to calculate what my pension, lump sum and earnings will be.  I have done some sums, but I have no idea how accurate they may be.  Is there anyone on the forum that would be able to help?  The calculator on MyCSP is known to be inaccurate, and wont let me calculate drawing Classic on its own.

Would be roughly 58 yrs and 6 months in age when considering partial retirement in May of next year as we have just agreed a 2 year pay increase with the 2nd part from 1 April  2026 (£59,152). 
Looking to go to 3 days (21 hrs) down from 5 (35 hrs).
I am only looking to draw on my Classic Pension (matures at 60), and want to leave the small amount I currently have in my Alpha pension until I'm closer to 67.
Reckonable service in Classic is 31yrs and 22 days.
Also looking to take my max lump sum from my Classic Pension. 
I am also single, and believe that there would be a refund of Widows contributions but have no idea how much this would be.

Thanks in advance to any one that could help.

ClashCityRocker1

I think you will have to choose between Option A and B (7 mcloud years in classic or alpha)

Option A will be classic pension of circa 31/80th of last/best 12 months salary c£58K = £22475 (plus 3 times that standard lump sum)

You can take some or all of this at partial retirement, but will be reduced by c5% per year before 60

With Classic you face abatement if your revised salary plus classic is more than pensionable salary.

My understanding is that you are likely on 36 hour week (not 35) so reducing to 3 day would be a 21.6 hrs - a reduction of 40% - this means abatement unlikely to come into play.

You can also take some or all of your accrued alpha - this will be reduced by c4% for each year before your state retirement age. You will continue to accrue alpha after partial retirement based upon your revised salary.

Option B will be about 24/80th of final salary in classic - £17400 pa (x3 lump sum)

What you need to compare is how much those 7 years between 2015 and 2022 would be worth under alpha if you take it early. My understanding is that alpha was originally designed to be worth roughly the same at 60 as classic so if you go before 60 probably best take classic after 60 alpha likely to be better, but don't rely on me for that!

I wouldn't take max lump sum just standard lump sum, but that is up to you. If you do take it pensions will be reduced as per guidelines.

Yorkie1

This is the link for the actuarial reduction factors: Factors Guidance Hub | CSPS_GB, from my thread here: CS Alpha - early reduction factors — MoneySavingExpert Forum (but the tables relate to all elements of the pensions).

dizzydusty

ClashCityRocker1 said:

I think you will have to choose between Option A and B (7 mcloud years in classic or alpha)

Option A will be classic pension of circa 31/80th of last/best 12 months salary c£58K = £22475 (plus 3 times that standard lump sum)

You can take some or all of this at partial retirement, but will be reduced by c5% per year before 60

With Classic you face abatement if your revised salary plus classic is more than pensionable salary.

My understanding is that you are likely on 36 hour week (not 35) so reducing to 3 day would be a 21.6 hrs - a reduction of 40% - this means abatement unlikely to come into play.

You can also take some or all of your accrued alpha - this will be reduced by c4% for each year before your state retirement age. You will continue to accrue alpha after partial retirement based upon your revised salary.

Option B will be about 24/80th of final salary in classic - £17400 pa (x3 lump sum)

What you need to compare is how much those 7 years between 2015 and 2022 would be worth under alpha if you take it early. My understanding is that alpha was originally designed to be worth roughly the same at 60 as classic so if you go before 60 probably best take classic after 60 alpha likely to be better, but don't rely on me for that!

I wouldn't take max lump sum just standard lump sum, but that is up to you. If you do take it pensions will be reduced as per guidelines.

Thanks so much for replying.  I should have said I'm in Scotland so know tax is slightly different.  Im also definitely 35 hrs full time per week (that was also part of a previous pay deal).  The MyCSP pension calculator doesn't show me option B  and my ABS for 24/25 automatically rolled my 7 years of McLeod in to my classic, it's also showing an incorrect salary for 2024  Plan is to partially retire and work for a few more years, accrue some savings and then fully retire.