Pensions

Discussion in 'education & employment' started by RubyBlue, Oct 2, 2018.

  1. RubyBlue

    RubyBlue faded and jaded

    does anyone know if you are entitled to a pension at age 60 and find yourself unemployed what happens? Do you just apply for your pension rather then claim universal credit or whatever JSA is now? What if your pension is less then the benefits you would get?

    Could you get your pension then get another job? The pension I’m talking about is a civil service one I am entitled to at age 60, I took voluntary redundancy 8 years about, however, although I’m not back in the civil service I’m working for a non departmental government body and paying into a civil service pension again although a different one and my new one wouldn’t pay out until 67 when I’m entitled to the state pension but my old pension pays out at 60.
     
    Last edited: Oct 2, 2018
  2. hippogriff

    hippogriff Imposter

    Doesn't matter if you are employed or not

    from the gov.uk site :

    "You don’t get your State Pension automatically - you have to claim it. You should get a letter no later than 2 months before you reach State Pension age, telling you what to do."
     
  3. RubyBlue

    RubyBlue faded and jaded

    It’s not a state pension I’m talking about a private or civil service pension.
     
  4. hippogriff

    hippogriff Imposter

    You should get details through from your pension scheme then, some time before the pension is due. I had to choose between a couple of options related to size of lump sum and send a form back, and I'm assuming I'll get the lump sum/pension when I hit 65 in a couple of weeks
     
    RubyBlue likes this.
  5. kabbes

    kabbes "A top 400 poster"

    From the tone of your post, I'm guessing you'd prefer to not receive your pension at its normal retirement age of 60? And I'm also assuming that being a civil service pension, it's a defined benefit scheme? If I'm right in all this, you can normally opt to retire late from most defined benefit schemes and gain the benefit of a late retirement factor (often about 4% p.a.). So if you choose to retire at 67 instead of 60, your pension will be something like 28% higher than if you take it at 60. You need to check the rules, though -- the scheme might only start applying late retirement factors from the age of 65, for example.

    If its a defined contribution scheme, it's just a pot of money that you can take whenever you like after age 55.

    On the other hand, if you do want to take your pension then don't worry, you can receive a pension and work at the same time. There are rules that keep changing on receiving a pension whilst paying into another pension, though, and I'm afraid I'm not up to date on this. If it will apply to you, you might need to take further advice on that.

    Have I covered your situation, or is there something else I'm missing?
     
    ffsear and RubyBlue like this.
  6. RubyBlue

    RubyBlue faded and jaded

    kabbes perfectly covered ~ thank you! One more question though ~ could I take my old civil service pension whilst still working and paying into my new one (Civil service)? I don’t expect I would want to do this just wondered.
     
  7. kabbes

    kabbes "A top 400 poster"

    That’s the bit I’m out of date on. I think it’s best to ask the new one directly — the scheme administrators must be up to date on the rules on this. I believe the answer is yes but legislation changes so often.
     
    RubyBlue likes this.
  8. RubyBlue

    RubyBlue faded and jaded

    Thank you kabbes ~ very useful information.
     
    kabbes likes this.
  9. A380

    A380 How do I change this 'custom title' thing then?

    You can. I am doing something similar. You have to be a wary of lifetime( £1m value) and annual limits. Although they are pretty high so unless you are earning more than (ever so approximately) £80k shouldn’t be an issue. You also can’t use money paid in a lump sum from one pension to invest in another pension. How the revenue would know, I have no idea.

    If you are in the Civil Service the online guide to Alpha is pretty good and also has links to various calculators. Check if your union has a contract with a pension advisor too...
     
    RubyBlue likes this.
  10. Puddy_Tat

    Puddy_Tat for the workers' breakfast

    Yes, you can apply for your pension. You can also claim JSA and / or other means tested benefits like housing benefit, but obviously the income from pension will affect how much you get on means tested benefits. housing benefit / council tax reduction are not 'all or nothing'. And / or you can claim ESA if you're not fit to work.

    It is possible that a pension will affect entitlement to contributions based JSA as well - it did when my dad got early retirement (at age 58) - he thought he would be able to sign on the dole as well at least for a year until it went income related, but since his work pension was over a certain amount, while he could still get a UB40 and his national insurance stamp paid, he didn't get any money out of them. That was 25 years ago so it may have changed (although probably not for the better)

    Yes, not a problem at all - although bear in mind you will only get one 'personal allowance' as far as income tax is concerned, it's the first X amount of your total income that is tax free, not the first X amount of each source of income (apologies if this is stating the bleeding obvious but it does catch some people by surprise) - you'd need to sort out with the tax person which of the two has your personal allowance on it, or whether you can split it between the two.

    Likewise if you want to continue working once you get your state pension as well.

    you'd need to ask the administrators of each pension scheme about this. I'm aware in the local government scheme (which is similar but not the same) there are some restrictions about retiring on a pension, then going back in to local government employment.
     
    RubyBlue likes this.
  11. heinous seamus

    heinous seamus til clay-cauld death shall blind my ee

    I've just received a letter from my old employer - they've given me the choice of a cash payment equal to the amount I paid into the pension scheme (around £2700 minus tax etc), or I can transfer it to another pension scheme. I don't have another pension. Well actually, I think I might have a couple of hundred in a NEST scheme. Anyway, any advice on what I should do with my meagre pension pot?
     
  12. kabbes

    kabbes "A top 400 poster"

    How old are you?
     
  13. heinous seamus

    heinous seamus til clay-cauld death shall blind my ee

  14. 19sixtysix

    19sixtysix Life as viewed from a Gay Gorbals Garret

    Was it a final salary scheme in which case that sounds like them try to buy you out for nothing.
     
  15. 19sixtysix

    19sixtysix Life as viewed from a Gay Gorbals Garret

  16. kabbes

    kabbes "A top 400 poster"

    Then it is well worth you starting a pension ASAP and transferring your refund of conts into it. Your employer must by law have a workplace pension now with at least some nominal contribution made by them (ie that NEST thing you mentioned). Join it if you previously left it and use that.
     
  17. kabbes

    kabbes "A top 400 poster"

    If you were employed for less than two years, DB schemes give you a refund of conts.
     
  18. 19sixtysix

    19sixtysix Life as viewed from a Gay Gorbals Garret

    I forgot that but in that case it might be as well to stick it in a personal scheme cause it'll be taxed otherwise.
     
  19. kabbes

    kabbes "A top 400 poster"

    Indeed, given his age, which means he still has plenty of time to build the pot.
     
  20. 19sixtysix

    19sixtysix Life as viewed from a Gay Gorbals Garret

    And given his age put in the higher risk funds. Over time they really do go up. Money begets money.
     

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