Calculating your pension

[fly-catchers]

As I am determined if possible to leave as soon after 60 as possible I have been doing my own calculations. These are taking the final salary figure and its supplement as valued on the 31st March 2016 (page 4 of last illustration). And using a figure of £300 per year plus £50 per year supplement for the CSDB pension. So adding on two years of CSDB to my final salary amount. And adding £350 x 8 for the NRA 65 pension and supplement and reducing that amount by 25% for taking it 5 years early. From this final amount I subtract £11500 and take off 20% off the balance for the tax and add the £11500 back on. Am I close to really seeing what I might at least get when I might go at 60? Also if you stay on lets say 8 months or more does the 5% reduction go down at all for that year? As I might stay to get my 30 year award (if they are still giving anything for that by them!). cheers!

[BeamishStout]

I too have been doing this calculation today:

What I have done is much the same as yourself but actually used the ' Nutshell 2016 Pension' statement sent to us in September 2016 as it breaks down NRA 60, NRA 65 benefits separately.

Added the NRA 60 elements together, added the NRA 65 elements together less 5% p.a (Fig A)

I ignored the lump sum figures as AVCs (Flexiplan and BonusPlan) are in excess of the 25% tax-free lump-sum and will be used for this purpose. I will probably use the excess of this additional pot to provide a small additional annuity (Fig B). Add in any other pensions from previous jobs (Fig C). (A+B+C) = Gross pension

Yes No NICs to pay (unless you get another job before SPA tipping you above threshold) and assume that personal allowance is £11500 (should rise in the next few years). Assuming you are a basic rate taxpayer. So yearly pay will be (A+B+C) - {(A + B + C) - 1150) x 0.20}.

Edit : Just realised I may have may an error in that my NRA 65 will be too high from this statement - too late now will have to re-check over the weekend Still I am 59 so I suspect the difference will not be too big (I hope). However I intend retiring when the new scheme kicks in (I am 60 in April 2018) anyway so maybe not...

[fly-catchers]

Yes I too used the ' Nutshell 2016 Pension' illustration and have not counted the AVC only the Add plan one which is covered by the final salary bit. On the 31st March 2016 I had 6 months left to buy so assume my NRA 60 will be a bit higher than the 2016 quote and of course there are a couple more RPI increases still to be factored in... So fingers crossed... for all of us!

[vmaxv4]

I too have been doing this calculation today:

What I have done is much the same as yourself but actually used the ' Nutshell 2016 Pension' statement sent to us in September 2016 as it breaks down NRA 60, NRA 65 benefits separately.

Added the NRA 60 elements together, added the NRA 65 elements together less 5% p.a (Fig A)

I ignored the lump sum figures as AVCs (Flexiplan and BonusPlan) are in excess of the 25% tax-free lump-sum and will be used for this purpose. I will probably use the excess of this additional pot to provide a small additional annuity (Fig B). Add in any other pensions from previous jobs (Fig C). (A+B+C) = Gross pension

Yes No NICs to pay (unless you get another job before SPA tipping you above threshold) and assume that personal allowance is £11500 (should rise in the next few years). Assuming you are a basic rate taxpayer. So yearly pay will be (A+B+C) - {(A + B + C) - 1150) x 0.20}.

Edit : Just realised I may have may an error in that my NRA 65 will be too high from this statement - too late now will have to re-check over the weekend Still I am 59 so I suspect the difference will not be too big (I hope). However I intend retiring when the new scheme kicks in (I am 60 in April 2018) anyway so maybe not...

As I am determined if possible to leave as soon after 60 as possible I have been doing my own calculations. These are taking the final salary figure and its supplement as valued on the 31st March 2016 (page 4 of last illustration). And using a figure of £300 per year plus £50 per year supplement for the CSDB pension. So adding on two years of CSDB to my final salary amount. And adding £350 x 8 for the NRA 65 pension and supplement and reducing that amount by 25% for taking it 5 years early. From this final amount I subtract £11500 and take off 20% off the balance for the tax and add the £11500 back on. Am I close to really seeing what I might at least get when I might go at 60? Also if you stay on lets say 8 months or more does the 5% reduction go down at all for that year? As I might stay to get my 30 year award (if they are still giving anything for that by them!). cheers!

I have also being doing my own figures on pension returns for 8+ years from numerous illustrations down the years..
Backround:
Bearing in mind in 2009 the pension helpline was a wash with information & would gladly help, sadly this is now not the case!!!
Before the government changed the minimum pension age MPA I was eligible to take my pension at 50,Did my due diligence on figures at that time (2010) & declined to take my pension that early, next milestone was 55. Made many spreadsheets & still do I know ..
So at the earliest opportunity ( 90 days/ 3 months) I applied for my NRA 60 & NRA 65 quotes from the pension HQ.
Mulled over those ACTUAL figures like a man possessed, Did the reduction % calculations, & declined to proceed.Then waited for the " Nurshell" illustration to arrive late August/ early September 2015 to confirm/ amend my calculations.
At 56 i asked for a quote again ( Note this time I deliberately waited for my birthday to get a more accurate figures)
As before modelled the % deductions from the Actual figures with a small increase in time from actually receiving the payment, then cross referenced them with my latest " Nutshell" Illustration.
At 57 i will applying my method of approach as before..
So what I trying to say IF you are approaching 55 like I was & not satisfied with just guesswork on reductions from 55 onwards maybe this will help..
Ps..
On my quest to understand my pension pot,I helped numerous of my friends & colleagues & been privy to many many other illustrations & quotes within my office.
Never giving advice on what to do, just an understanding at what they are looking at!!

[vmaxv4]

My intention is to take my NRA 60 at 60..
However with the pending pension changes I'll be eager to make note of my "Own" of what I'm getting & not relying on those figures in the proposed plan changes brochure.

[BeamishStout]

Edit : Just realised I may have may an error in that my NRA 65 will be too high from this statement - too late now will have to re-check over the weekend Still I am 59 so I suspect the difference will not be too big (I hope). However I intend retiring when the new scheme kicks in (I am 60 in April 2018) anyway so maybe not...

Hmmm looked again at the NRA 60 and 65 figures from the 'Nutshell' statement and the recent Pension Review (illustrative review benefits). And now I'm confused. I thought I understood what was going on with the NRA60 and NRA65 elements until I saw the new illustration.

I had done a calculation using the 'Nutshell' NRA 60 and NRA 65 figures from the September 2016 statement (i.e the position at 31/3/16). I applied the 5% per year deduction of benefits for the NRA 65 figure assuming a retirement at 60. However the new illustration states as on page 2 'Total illustrative pension.....if you stay in service until 60' a figure which according to the table is no different to what it was before (Born early April and will be 60 in 2018!) but my calculation as laid out originally must be incorrect as I am about £900 p.a. out (the wrong way)

[fly-catchers]

Don't forget BeamishStout that the personal pension figures just sent to you as before & after DO NOT include the pension supplement you would get if your retire at 60. That makes a difference...

[BeamishStout]

Don't forget BeamishStout that the personal pension figures just sent to you as before & after DO NOT include the pension supplement you would get if your retire at 60. That makes a difference...

No the calculations I did on my own figures did not include the pension supplements so alas that was not the reason for being £900 out.

Yes the pension supplements seem to be in line with what I expect them to be.

[BeamishStout]

Now realise where I was going wrong (I think).

The NRA 65 benefits from the nutshell (Sept 2016 document) obviously assumes you keep paying contributions until 65. So if I estimate what the pot will be worth at 60, then do the 5% deduction p a. I get much much closer (within £100) to what this most recent illustration shows. Then need to add on the pension supplement and that will be a much more accurate figure of what pension I would get from RM if I retired at 60 and take all the benefits at that time.

[RobertT]

I’ve found the easiest way of working out what your estimated NRA65 entitlement by 31st March 2018 is to do the following:

1. Find your ‘total pension’ figure on page 4 of your ‘squirrel’ statement.
2. Then subtract your NRA60 figure found on page 2. This gives you your NRA65 up to 31/3/16.
3. Divide the answer by 6 and then multiply by 8.
4. Make any reductions for taking it before NRA.
5. Use the same method to work out what your supplement will be.

[BeamishStout]

I’ve found the easiest way of working out what your estimated NRA65 entitlement by 31st March 2018 is to do the following:

1. Find your ‘total pension’ figure on page 4 of your ‘squirrel’ statement.
2. Then subtract your NRA60 figure found on page 2. This gives you your NRA65 up to 31/3/16.
3. Divide the answer by 6 and then multiply by 8.
4. Make any reductions for taking it before NRA.
5. Use the same method to work out what your supplement will be.

Thanks for this