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.fca2019 wrote: I have a small DB scheme pension, from an old job, and for taking early retirement you get a lower payout.
Early payment of Final Salary Pension-Pros and Cons
-
- Lemon Half
- Posts: 5804
- Joined: November 5th, 2016, 9:05 am
Re: Early payment of Final Salary Pension-Pros and Cons
-
- Lemon Pip
- Posts: 75
- Joined: November 6th, 2016, 8:42 am
Re: Early payment of Final Salary Pension-Pros and Cons
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.Alaric wrote: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.fca2019 wrote: I have a small DB scheme pension, from an old job, and for taking early retirement you get a lower payout.
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.
-
- Lemon Slice
- Posts: 267
- Joined: January 29th, 2018, 10:13 pm
Re: Early payment of Final Salary Pension-Pros and Cons
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!
-
- Lemon Pip
- Posts: 75
- Joined: November 6th, 2016, 8:42 am
Re: Early payment of Final Salary Pension-Pros and Cons
Well I have gone for it, the forms are posted !Avantegarde wrote: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!
-
- Lemon Pip
- Posts: 71
- Joined: May 26th, 2019, 11:54 am
Re: Early payment of Final Salary Pension-Pros and Cons
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.smokey01 wrote:Well I have gone for it, the forms are posted !Avantegarde wrote: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!