I tried it once, did a little something to see me through but had gone back to full time within a year. Most people aged 60-62 would not be in a position to change plans & retire immediately as their current financial plans will be based around them aiming to retire later.
It'll end up being 70 soon . I know all of the new pensions in the public sector you dont get to retire at 57/58 they are set to the pension age
It always has been, unless they choose to take a big percentage reduction out of the money they paid in. Your LGPS pension is payable in full from your Normal Pension Age which is linked to your State Pension Age (but with a minimum of age 65). However, you can choose to retire and take your pension from the LGPS at any time from age 55 to 75, provided you have met the 2 years vesting period in the scheme. If you choose to take your pension before your Normal Pension Age it will normally be reduced, as it's being paid earlier. If you take it later than your Normal Pension Age it's increased because it's being paid later. You must take your benefits in the LGPS before your 75th birthday. https://www.lgpsmember.org/tol/thinking-leaving-when.php
It's not really taking a hit it's the opportunity to take life easy 10 years earlier. Obvs you aint paying those extra 10 years and also losing the compound yields also that come with it . Some think they are losing out but personally I'd rather take it early and benefit from it . Might be totally shafted waiting those 10 years
I posted a link to the rules that those in the Council Scheme are bound by, you should have a read through to see how much you've got wrong. The early retirement bit hasn't changed for years, as I know from some that have gone through it. They do pay for the extra 10 years, firstly through their contributions, and secondly through actuarial reductions that lower the amount they receive by over 50% if they go that early. The bulk would get a payout far lower than minimum wage, and that's before the massive actuarial reductions.
You cant have your cake and eat it can you .of course you are gonna get a lit less spreading it over 25 ish years as opposed to 15 ish . For those that where able to build up a really sizeable pot its surely worthwhile.
My works pension will probably allow me to retire/semi-retire at 60, but I'll be loaded at 67. Hope I get time to enjoy spending it on grandchilderen
If you want to ignore the information on the link I sent you, and continue to believe most of them can build a sizable pot, you carry on being needlessly jealous. I reckon you'd be stunned at the amount most receive.
In general, you are correct, but there is a table somewhere of actuarial deductions. Not sure its as high as 50% at 55 though. Can't be arsed to check it. Then of course there's the 85 year rule that kicks in at 60.
The 85 year rule doesn't apply to most local pensions, as it's adoptive and not taken up locally. The reductions are here. https://www.lgpsmember.org/more/reductions.php
Yeah, thought 50 was a bit high. 29% to retire at 60 for someone of my age sounds a bit hefty but acceptable trade-off. I'm reasonably certain the 85 rule is still in place for Hull City Council. Not sure about East Riding. Both of them are administered by East Riding Pension Fund. https://erpf.eastriding.gov.uk/
I wasn't far off with 46.3% at 55, which is what was being mentioned. It's not in place at Hull City Council, they opted out. I know a few people that looked in to it, and it is quite clear in the documentation. They do use some of the criteria of the 85 year rule for other things, but not for early retirement payments, which are subject to actuarial reductions, unless it's a redundancy situation or in extreme ill-health.
