Adding to a defined benefit pension (Civil Service)

[annakorp]

@resjudicata !thanks

 

[annakorp]

@resjudicata Thank you, that's very helpful to know about claiming early. I have to admit I've not bothered to understand that part before as it feels like a decision very far away!

I haven't really considered a LISA and, from looking at it now, think I might have ruled it out too hastily from not understanding how it worked. I had thought it involved a one-off non-compounding 25% bonus on the way in and then only meagre bank savings account levels of interest thereafter. But reading the wiki more carefully I see that you can have a S&S option instead of cash. I'll look at this properly.

And yes the house is a bit of a distraction / pipe dream. I guess I just like the idea of being able to get to the money early should my life plans change dramatically.

 

[yeshuas_my_freedom]

@annakorp NHS Pension here, tied to state pension age is a major concern for me also. Especially if they just go well nearly everyone has a workplace pension so it doesn't matter if the state pension moves back loads, mine at state pension age is already a few years later than friends with a fixed age and mine will only get longer.

I've just started a S&S Lisa this week and hope that it will let me retire closer to 60 if possible. Thanks for posting this, it's something I've been meaning to ask because extra contributions don't really seem worth it, and SIPPs don't really seem to be something we can do.

I went for the "Legal & General International Index Acc", mostly because everyone says get Vanguard Global All Cap and this is almost the same but has lower fees. The 25% Bonus for the first few years I'm putting into the L&G Tech fund (free money and I'm young, I'll take a little more risk), good historic returns (don't reflect future though) and whilst the fees are higher than the Int Index, they're a lot lower than most tech funds. As always do your own research, not financial advice etc. I also have a S&S ISA I do more regular/active investing with, basically a bit of a lockdown hobby if nothing else, but I'll keep it long term, this is more hands on where as my LISA I'll just do a few lump sums a year and not touch inbetween.

 

[chrissum]

@annakorp I've gone for options B and F (3 year EPA and S&S ISA). I might add to a Lifetime ISA and/or SIPP in due course.

 

[vr1984]

@annakorp Were you employed before 2012? If so the recent legal ruling likely means you have an option to take any Alpha up to March 2022 as Nuvos instead (65 retirement age), which likely means EPA isn’t worth exploring for new Alpha contributions until 22/23 FY.

 

[elvisrene10]

@annakorp Drawdown from an S&S ISA (option F) to bridge the gap between your desired retirement date and when you can take NUVOS without actuarial reduction is commonly discussed on the internet.

I would be interested in people’s opinion on using part of your ISA balance at retirement to buyout the actuarial reduction for taking your pension early. You do this for the NUVOS scheme by paying a cash lump sum when you retire. This is called the Actuarially Reduced Pension Buy-out option.

I understand that you make this decision when you retire, you would have more certainty on your current physical health and know your ISA balance.

https://www.civilservicepensionscheme.org.uk/members/member-calculators/

I considered a LISA, but went with an S&S ISA. The LISA fees are higher, my calculations showed that if you are able to open a S&S ISA with healthy lump sum the returns would beat a LISA over the period.