Early payment of Final Salary Pension-Pros and Cons

[Alaric]

I have a small DB scheme pension, from an old job, and for taking early retirement you get a lower payout.

I think the OP noted that he had one of the more generous DB schemes, one that didn't apply an early retirement factor from age 60 onwards.

[smokey01]

I have a small DB scheme pension, from an old job, and for taking early retirement you get a lower payout.

I think the OP noted that he had one of the more generous DB schemes, one that didn't apply an early retirement factor from age 60 onwards.

That is correct. The reduction is definitely 2.5% from age 60 down to 55, with a small proportion of the later built up years having the 2.5% applied from age 62 to 55 I.e 7 years reduction.

I have the paperwork from the pension provider so I do know the real figures for taking it now as opposed to leaving it and it does appear to be more generous than most.

[Avantegarde]

That is a fantastically generous (ie small) level of reduction for each year of early payment between 55 and 60. I'd grab it if I were you!

[smokey01]

That is a fantastically generous (ie small) level of reduction for each year of early payment between 55 and 60. I'd grab it if I were you!

Well I have gone for it, the forms are posted !

[ffacoffipawb64]

That is a fantastically generous (ie small) level of reduction for each year of early payment between 55 and 60. I'd grab it if I were you!

Well I have gone for it, the forms are posted !

Well done, I took my DB early with a 3% pa early retirement 62 to 55. Mainly due to LTA issues ie pension x 0.97 to the power of 7. Would have been daft not too. Will do the same with my earlier DB in about 2 years time (when ER pension matches revalued GMP at 65 - they wont allow it until then). A similar ER factor applies but only from age 60 downwards.