65 pension & Cash Balance

[Postmangit]

If I was to take my 60 pension & leave. Obviously I would not be paying into both of those. Do they stay there for me for 5 years doing nothing, or do they gain interest over that time? Thanks

[RobertT]

Your Age65 pension will continue to increase by inflation and the DBCBS will carry on increasing by discretionary bonuses.

[Postmangit]

Thank you. I take it that if I took both now I would lose money through tax & taking it5 years early?

[RobertT]

You'll lose roughly 5% for each year you take your pension/s before Normal Retirement Age. So taking your Age65 benefits at 60 would mean a 25% reduction.

You'll pay income tax on your pensions in the same way as you do with your wages. Basically any income over the Personal Tax Allowance(currently £12,570) is taxed.
Although it's possible that figure may be higher or lower due to individual circumstances - the addition of the uniform cleaning allowance, for example.

NIC's are not payable on pension income.

[Navalron]

If I was to take my 60 pension & leave. Obviously I would not be paying into both of those. Do they stay there for me for 5 years doing nothing, or do they gain interest over that time? Thanks

Robert t is correct that you would lose 25% but don't forget your pension would be in payment, in your bank/isa earning interest. I've taken my pension at 55 and will start losing it and when I reach 79. Always take the cash gets my vote but it's an individual choice.

[mrcurve]

if you do take it early then you will have less income when your older, and maybe unable to work to improve your situation.

[captain kaos]

If I was to take my 60 pension & leave. Obviously I would not be paying into both of those. Do they stay there for me for 5 years doing nothing, or do they gain interest over that time? Thanks

At 59 I’ve just taken 60 & 65. Tbf my lump sums etc worked out ok after 40 years. With interest rates at the moment I’ve invested lump sums and hopefully leave soon. Will definitely not be hanging around for another 6 years !!!

[Postmangit]

Yes my lump sum is nice for 34 years, as I did an add for most of the time til the 60 one finished .