Pension 2018/21

[Duran]

Hi All. I don't understand the Cash Balance Pension 2018/21. I know you can take your NRA60 AND 65 from 55. 55 next month btw. 37years Service. I don't intend taking my pension for another 3 years at least.

My question is. With what parts of your pension can you take years 2018/21 pension, and do you lose a percentage for taking it early ?

[RobertT]

The Cash Balance or DBCBS is attached predominantly to NRA65 benefits, and provides a lump sum rather than a pension.

There's been some debate on this forum as to whether there's a reduction and if so how much. The common consensus seems to be that if there is one, it's minimal.

[Duran]

The Cash Balance or DBCBS is attached predominantly to NRA65 benefits, and provides a lump sum rather than a pension.

There's been some debate on this forum as to whether there's a reduction and if so how much. The common consensus seems to be that if there is one, it's minimal.

Thankyou. Yes a few colleagues have had quotes of around £12000-£15000 lump sum payment. Not sure if that as been reduced or not. I guess if you take that. You would also have to take NRA65 .

[RobertT]

Everyone's DBCBS pot will probably vary to some degree because of different pay and pensionable allowances, etc. But it's not too difficult to work out roughly how much yours should be worth 'today' from the figures on your last annual illustration plus the 1.7% increase announced earlier this year, plus total contributions(19.6% of pay) since April.

The DBCBS will normally be taken along with NRA65 benefits. But there was someone on here recently who said that he was given the choice to transfer it out to a DC scheme separately, although he was a deferred member, which may be different?

Transferring isn't necessarily a better option!