Taking out of civil service pension ?

Marcon

katejo said:

As soon as I started my university job, my Dad told me to pay into the DB pension scheme. So glad i did. It means I can retire very soon and not wait to 67. Why does your daughter want to opt out?

Probably the same reason so many people are posting here grumbling about the increase in minimum pension age: cash today (or at least 'sooner') is more attractive than cash at a later date for those grappling with the cost of living.

Also a lack of understanding of just how valuable this perk of her Civil Service employment was. The fact she appears not to have known she was enrolled in the scheme (maybe reading her payslip would have given a clue...), or 'who it was with', speaks volumes - all the information would have been provided at the time she started.

westv

Emmia said:

@archer_66 what are you or your daughter seeking to achieve in trying to withdraw the money from the pension?

The money can't actually be taken out anyway if the person involved is still in the CS.

Emmia

westv said:

Emmia said:

@archer_66 what are you or your daughter seeking to achieve in trying to withdraw the money from the pension?

The money can't actually be taken out anyway if the person involved is still in the CS.

I'm aware of that - but I wondered what the OP is trying to achieve with a desire to withdraw.

Edit: If money is tight I can understand the  temptation to opt out from the scheme, with the intention of rejoining later "when things improve" but the OPs daughter really needs to keep paying in if she's still in the CS.

The pension is a significant workplace benefit - opting out means she doesn't get the employer contribution, and she won't realise the full value of her contribution she's making as an uplift on her pay as she'll be taxed on it.

daveyjp

If she still works for the CS stopping contriburions is equivalent to a huge pay cut.  Thank you from the taxpayer, but its not a wise decision.

I was with a friend last week who is approaching retirement.  Out of the blue she had received a letter from a previous employer - a building society which was taken over years ago -  when she was in her 20s she worked for them for 6 years.

She had forgotten about those monthly pension deductions and is now in line for a 5 figure lump sum and £4k a year for life, with increases each year and a spouses pension.

katejo

Marcon said:

katejo said:

As soon as I started my university job, my Dad told me to pay into the DB pension scheme. So glad i did. It means I can retire very soon and not wait to 67. Why does your daughter want to opt out?

Probably the same reason so many people are posting here grumbling about the increase in minimum pension age: cash today (or at least 'sooner') is more attractive than cash at a later date for those grappling with the cost of living.

Also a lack of understanding of just how valuable this perk of her Civil Service employment was. The fact she appears not to have known she was enrolled in the scheme (maybe reading her payslip would have given a clue...), or 'who it was with', speaks volumes - all the information would have been provided at the time she started.

I was aware of the benefits even then. I would have joined without any prompt from parents. I added AVCs a few years later which will add around £4k to my annual pension income. 

QrizB

OP's been very quiet.

Judging by their posting history (three new discussions started, zero comments added) they might not return.

horsewithnoname

katejo said:

Marcon said:

katejo said:

As soon as I started my university job, my Dad told me to pay into the DB pension scheme. So glad i did. It means I can retire very soon and not wait to 67. Why does your daughter want to opt out?

Probably the same reason so many people are posting here grumbling about the increase in minimum pension age: cash today (or at least 'sooner') is more attractive than cash at a later date for those grappling with the cost of living.

Also a lack of understanding of just how valuable this perk of her Civil Service employment was. The fact she appears not to have known she was enrolled in the scheme (maybe reading her payslip would have given a clue...), or 'who it was with', speaks volumes - all the information would have been provided at the time she started.

I was aware of the benefits even then. I would have joined without any prompt from parents. I added AVCs a few years later which will add around £4k to my annual pension income. 

You are aware because you are interested in it, and probably your parents were too? Not everyone is lucky enough to be bought up to be financially astute. 

EnPointe

Emmia said:

ellenvan said:

If the civil service scheme is based on final salary it is never a good idea to opt out or transfer.
Civil service pensions are usually so good, index linked etc .
Do you have any more details of the pension and benefits?

They're not final salary these days, it's average earnings.

CARE basis calculation  is still a DB pension  it just promotes being promoted earlier in your career to maximise pension income but also  means high pension contributions