Retirement planning
Discussion
Hi
Currently I work for the Civil Service, 30k a year and I pay 126 pounds a month into my pension, they contribute 485 pound a month.
How the heck do I work out when I can retire with an income of 20k per year? It is confusing, reason I'm asking here is because the more you pay in - the more you get out of it?
Currently I work for the Civil Service, 30k a year and I pay 126 pounds a month into my pension, they contribute 485 pound a month.
How the heck do I work out when I can retire with an income of 20k per year? It is confusing, reason I'm asking here is because the more you pay in - the more you get out of it?
JungleJim said:
more info required - how old are you, what length of service, how long you been contributing, is it defined benefits or defined contributions (i assume final salary in civil service?)...etc
25 years old2 years service
2 years contribution
Not final salary, an average ? New pension scheme...
oop north said:
Assuming you are in the main scheme (called alpha from April 2015) then you build up pension at 2.32% x your salary each year. You want £20k and are earning £30k, so you are looking for two thirds. That calculates at 28.74 years x 2.32% = 66.67.
But you would get more pension if and when your earnings exceed the current level for promotion (ignore inflation - it should take care of itself) - and you get less pension if you retire before your State Pension Age (don't know how old you are but assuming in your 20s as done two years, so SPA probably around 68 and about 40 years to go?) because early retirement means the annual payments are reduced such that if you have an average lifespan you will get the same amount overall as if you took the pension
So in rough terms provided you work around 30 years and started at the age of 38 you will hit it at 68! I don't thin the reduction factors for early retirement have been published yet for any of the State schemes so I do not know if it is possible to estimate what age you will actually be able to retire at
I'm 25 now, pension started at 23 - makes more sense kinda that you have explained it... If I doubled what I put in it, would it make such a significant difference? But you would get more pension if and when your earnings exceed the current level for promotion (ignore inflation - it should take care of itself) - and you get less pension if you retire before your State Pension Age (don't know how old you are but assuming in your 20s as done two years, so SPA probably around 68 and about 40 years to go?) because early retirement means the annual payments are reduced such that if you have an average lifespan you will get the same amount overall as if you took the pension
So in rough terms provided you work around 30 years and started at the age of 38 you will hit it at 68! I don't thin the reduction factors for early retirement have been published yet for any of the State schemes so I do not know if it is possible to estimate what age you will actually be able to retire at
Gassing Station | Finance | Top of Page | What's New | My Stuff