Retirement

[Jap Stammer]

I’m still civil service but different department. CS pensions are still ok but now average over the time in the CS so if you started at the bottom and worked up - most outside London that had an impact. I’m still on the old terms so it goes on my current pay/grade.

I'm ex-Civil Service, having been TUPE'd twice into the private sector, but retained my CS T&Cs.

The current employer froze our final salary contributions in 2015 and switched us to their career average pension. Then, in August 2022, they switched us back into the current Civil Service pension scheme (CSPS) which, as you say, is another career average scheme.

After the McCloud judgement, we were given the option to switch all of our contributions between 2015 and 2022 back to a final salary basis which, in my case, currently means 38 years contributions based on my salary in August 2022 (equivalent to a Civil Service SEO). Anything from 2022 onwards will still be career average.

However, we will shortly be given the option to move all of those contributions into the CSPS meaning the final salary part of the pension will be calculated based on my salary when I actually retire, not just what it was in August 2022.

 

[Fletch]

Basically for a single person ( assuming you're mortgage-free homeowner) , I'd say that if you had upwards of £250k in a defined contribution pot & you were 55 / 57 ...... then retirement is Deffo an option.

For a couple- maybe £400k combined

Keep the lump invested ( make sure it's invested in a scheme that delivers at least 10% per annum average over 5 years ) - and your pot will continue to grow whilst you pull out £25k or so per year to live on . ( take out just enough to ensure your tax is minimised )

Less than £150k invested and you're taking a gamble retiring at 55 imo.....

Mate £250k isn’t that much these days (or combined 400 for a couple ).
If you use a 4% per year withdrawal rate then 250k is only £10k per year . No good when your 55 and still very active , it’s not enough

I think a £250k pension pot is a little on the low side to be retiring mid-50s unless you have other savings or investments/property to include as 10% growth is quite optimistic in the short to mid-term.

I'm 51 and the plan is to keep my head down at work for another 6-7 years and then hopefully be offered redundancy. It would be then good to take a year to do some travelling before coming back for a stress free part-time job and maybe downsize the house or move back north to liberate some equity.

Agree about the pot comment .

Good one of the lads “retired” bout six month back , mid 50s, then realised his pot wasn’t enough and wouldn’t last , gone back to work now again doing a similar role , I think

 

[Nero the dog]

Until you start paying for care packages.

If you worry about that you would never retire. If you need to go into a care come for 10 years you could be looking at about £500,000.

 

[Town End Farmer Giles]

Mate £250k isn’t that much these days (or combined 400 for a couple ).
If you use a 4% per year withdrawal rate then 250k is only £10k per year . No good when your 55 and still very active , it’s not enough

Agree about the pot comment .

Good one of the lads “retired” bout six month back , mid 50s, then realised his pot wasn’t enough and wouldn’t last , gone back to work now again doing a similar role , I think

Occupational pension around £12-14k p.a. from 58ish, plus lump sum of around £100k which I'll take mebbes £8-10k a year from. Should see me through til state pension if I live that long.

Savings on top of that to fall back on if necessary.

Obviously those numbers just get bigger longer I work but I hit that sweet spot around 58 where I should be comfortable

If you worry about that you would never retire. If you need to go into a care come for 10 years you could be looking at about £500,000.

How many residents live that long in a care home. Very few I reckon.

 

[safccfas]

How many residents live that long in a care home. Very few I reckon.

Depends on what you go in for. Dementia and you could be in there for years easily as it’s the mind not the body that’s gone to pot.

 

[Hair Flick]

Depends on what you go in for. Dementia and you could be in there for years easily as it’s the mind not the body that’s gone to pot.

That’s when they engineer the “falls”

 

[42]

Until you start paying for care packages.

If you've spent it all, the government picks up the tab

 

[Hair Flick]

If you've spent it all, the government picks up the tab

See the post above.

 

[42]

See the post above.

Tbf, owa lasses grandad was in carehome for about 10 years. It was covid the did him in (although he was about 90)

 

[Hair Flick]

Tbf, owa lasses grandad was in carehome for about 10 years. It was covid the did him in (although he was about 90)

The UK’s handling of Covid in care homes was the ultimate engineered “mass fall” equivalent sadly.

 

[Parkmaverick]

I'm ex-Civil Service, having been TUPE'd twice into the private sector, but retained my CS T&Cs.

The current employer froze our final salary contributions in 2015 and switched us to their career average pension. Then, in August 2022, they switched us back into the current Civil Service pension scheme (CSPS) which, as you say, is another career average scheme.

After the McCloud judgement, we were given the option to switch all of our contributions between 2015 and 2022 back to a final salary basis which, in my case, currently means 38 years contributions based on my salary in August 2022 (equivalent to a Civil Service SEO). Anything from 2022 onwards will still be career average.

However, we will shortly be given the option to move all of those contributions into the CSPS meaning the final salary part of the pension will be calculated based on my salary when I actually retire, not just what it was in August 2022.

That’s why I’m still on the old pension I will be given the option and currently the classic plus I was on is a better option by £1k a year.

I have 14 years on the old terms and left when TP’d Grade7 but guessing it will go on whatever my SEO salary was when I left x index linked. No idea what it will be worth now or in a few years but I’m guessing it will be decent.

There’s a pension calculator- do a search for Civil Service pension portal - you will need your national insurance number and register and there is modeller on the site.

 

[TAD]

There’s a pension calculator- do a search for Civil Service pension portal - you will need your national insurance number and register and there is modeller on the site.

I could be wrong but I think the pension modeller is currently only for current members.
I have to write for updates on my previous/frozen CSPs pension from another job years ago but see my current pension on the modeller.
Just in case anyone doesn't know, in the civil service pension scheme. For people effected by the McLeod judgement who were moved, they will write to you as you near pension age giving you the two options which you can the choose.

 

[JJH]

I dumped 4 years worth of pension contributions from my company into a Sipp last month mainly to reduce corp tax .
The intention was to then take out 25% tax free but think I’ll just leave it alone.
At 55 now I’m not sure in 10 yrs it will have grown much ? I know pensions can be IHT free but wondering if it would have been better to invest elsewhere .

 

[Keb]

Looking at getting out sometime next year. Inherited a house which still needs a lot of work to get to a selling position, but once that's sold, we'll have enough to last 6/7 years before hitting pensions. Will also sell the main house and downsize a bit to allow us to travel the world for a few years and give our boys a sizeable deposit for them to get on the property ladder.

 

[Boris Bear]

I could be wrong but I think the pension modeller is currently only for current members.
I have to write for updates on my previous/frozen CSPs pension from another job years ago but see my current pension on the modeller.
Just in case anyone doesn't know, in the civil service pension scheme. For people effected by the McLeod judgement who were moved, they will write to you as you near pension age giving you the two options which you can the choose.

I left while it was still the classic pension…is there somewhere I can write to in order to get a forecast?

 

[Hongkongphooey]

Both me and the Mrs have full military pensions as well as private pension pots, we both get increases based on the CPI rate in October each year. We are lucky we were in the old military pensions scheme and didn't opt out, the schemes that have been brought in since then are nowhere near as good.

 

[framed]

I’ve become obsessed with it, only 53 but I’m finding it harder with every passing week to get out of bed.

I’m on the trains and yeah I know we’re lazy overpaid bastards but whatever else you say our shifts are extreme. I’m finishing a week of lates today, off at 02.14 and then I start earlies with a 03.27 on Monday.

Years of this is really unhealthy for you. Doesn’t matter what time you go to bed, getting up at just after 2am is not good.

At the very least I’m going part time at 55. Wish I could make head or tail out of what my pension is worth at 55 but it’s clear as mud. I think I can get somewhere around 100k lump sum and around £1200 a month level pension plus obviously I’d still be working part time. Not a chance I’m going past 58 without full retirement.

Got a few quid in the crypto lottery (about 40k) so if that can grow to 100k or so in the supposed upcoming bull run then I’ll retire fully at 55.

I’ve also hardly taken any sick in the last 35 years but that is definitely going to change over the next couple. Sick of the same people ripping the arse out of it every year and being no worse thought of

 

[TAD]

I left while it was still the classic pension…is there somewhere I can write to in order to get a forecast?

There's a contact us form on the website. Is start there

You must be logged on to see external links

.
I usually request a forecast on my armed forces and old civil service every 5 years

 

[Will e]

I’ve become obsessed with it, only 53 but I’m finding it harder with every passing week to get out of bed.

I’m on the trains and yeah I know we’re lazy overpaid bastards but whatever else you say our shifts are extreme. I’m finishing a week of lates today, off at 02.14 and then I start earlies with a 03.27 on Monday.

Years of this is really unhealthy for you. Doesn’t matter what time you go to bed, getting up at just after 2am is not good.

At the very least I’m going part time at 55. Wish I could make head or tail out of what my pension is worth at 55 but it’s clear as mud. I think I can get somewhere around 100k lump sum and around £1200 a month level pension plus obviously I’d still be working part time. Not a chance I’m going past 58 without full retirement.

Got a few quid in the crypto lottery (about 40k) so if that can grow to 100k or so in the supposed upcoming bull run then I’ll retire fully at 55.

I’ve also hardly taken any sick in the last 35 years but that is definitely going to change over the next couple. Sick of the same people ripping the arse out of it every year and being no worse thought of

Your last sentence is unfortunately very true most places, I had a superintendent who went off sick for the first time in 34 years because of a very sly trick management did to him. As you say it meant nothing to them, as the saying goes your only a number!

 

[Parkmaverick]

I could be wrong but I think the pension modeller is currently only for current members.
I have to write for updates on my previous/frozen CSPs pension from another job years ago but see my current pension on the modeller.
Just in case anyone doesn't know, in the civil service pension scheme. For people effected by the McLeod judgement who were moved, they will write to you as you near pension age giving you the two options which you can the choose.

You may be right I just made an assumption as the site says for all the different types involved.