Take it or

[Chelseablue]

Mare trying to get capita to get back to me.

[rambo1]

The logic I used to talk myself out of taking it early was..... where would I get 5% + RPI a year risk free on the money if I took it early?
In my case for the nra 60 pension, I would have got a yearly pension of £5,500 and a PCLS of £33,000 at age 55.
When I took it at 60 I got a yearly pension of £9,500 and a PCLS of £63,000.
So for me it really has paid off to leave it until I reached the nra60.
But as others have rightly said...... there is no right or wrong answer. It depends on your personal circumstances.

That's a huge difference. £61 a week after tax for the rest of your life ( plus other pensions ) could be the difference between a nicer retirement or sitting in a cold damp house scared to turn the heating on. I never understood the "you could die at 60" argument as you can drop dead at any age.

I thought it was 5%/yr reduction if you take benefits earlier than NRA? Don't forget too that he's been contributing for another 5 yrs to increase his pot and final amount. Would also have got the pension supplement for an additional 5 yrs and will ultimately be paying more tax on the bigger pension. Figures don't seem right to me that there was a near 50% reduction for taking 5 yrs early?

[RobertT]

I won't comment on the figures, as Renrag is more clued up than a lot on here, but to stop any confusion:-

Don't forget too that he's been contributing for another 5 yrs to increase his pot and final amount.

Everyone stopped building up Age60 benefits in 2010 and Age65 pension in 2018, they will only have increased by inflation after those dates.
The DBCBS ran from 2018 to 2024 and is predominantly attached to Age65.

Would also have got the pension supplement for an additional 5 yr

He's in section B by the sound of it, so gets a lump sum as standard and doesn't get the supplement.

Going by the calculator on the RMPP website, there isn't a massive difference in the total amount of supplement a section C member receives, regardless of when they take their benefits. It's just spread out over a longer period of time when taken early.

[rambo1]

Ok

[renrag40]

The logic I used to talk myself out of taking it early was..... where would I get 5% + RPI a year risk free on the money if I took it early?
In my case for the nra 60 pension, I would have got a yearly pension of £5,500 and a PCLS of £33,000 at age 55.
When I took it at 60 I got a yearly pension of £9,500 and a PCLS of £63,000.
So for me it really has paid off to leave it until I reached the nra60.
But as others have rightly said...... there is no right or wrong answer. It depends on your personal circumstances.

That's a huge difference. £61 a week after tax for the rest of your life ( plus other pensions ) could be the difference between a nicer retirement or sitting in a cold damp house scared to turn the heating on. I never understood the "you could die at 60" argument as you can drop dead at any age.

I thought it was 5%/yr reduction if you take benefits earlier than NRA? Don't forget too that he's been contributing for another 5 yrs to increase his pot and final amount. Would also have got the pension supplement for an additional 5 yrs and will ultimately be paying more tax on the bigger pension. Figures don't seem right to me that there was a near 50% reduction for taking 5 yrs early?

Hi Rambo.
I'm in Section B therefore there was not a 5% ceiling on the yearly rise in my pensionable pay for the last 2 years. RPI for the preceeding 2 September's were 12.6% and 8.9%. Therefore, my pensionable pay rose by 22.26% cumulatively in those 2 years.
Bear I'm mind that the figures I gave for taking the nra60 at 55 were AFTER the 25% deduction would have been take out so the actual nra60 on the yearly statement would have been around £8,000 5 years ago.
When I took my nra60 pension last September there was an option of a yearly pension of £10,800 and a standard PCLS of £32,500..... but like 83% of people taking their pension I chose the maximum PCLS with a reduced yearly pension.
I hope this explains to you how the pension virtually double in 5 years.

[rambo1]

Yes, thanks