Funding earlier retirement in DB scheme.

[cath]

Hi. My partner is a member of a DB company scheme. The scheme is underfunded and he won't be able to take retirement before 68. Early retirement will not be possible.

I'm trying to see whether it is possible for him to put money into AVCs which he could use to fund a few years early retirement, until such time as the main scheme becomes available.

The scheme has an AVC option, but this only seems to become available when he retires from the main scheme. From what I've researched, it looks like he could open a third party "AVC PRSA", but that also seems linked to the main scheme?

Is there any good options open to him?

 

[Conan]

Any AVC fund can only be accessed at the same time as he retires from the main scheme. You cannot access the AVC fund to effectively retire early whilst waiting for the main scheme to start paying the pension.
Depending on his age now he could just save funds (outside a pension structure) and perhaps just leave service at say age 65 but wait until age 68 to receive his scheme pension.

 

[MrEarl]

Hi. My partner is a member of a DB company scheme. The scheme is underfunded and he won't be able to take retirement before 68. Early retirement will not be possible.....

Is there opportunity to put pressure on the sponsoring employer to top up the DB Scheme ? Depending on the employer's financial circumstances this may be an option for both your partner and fellow DB Scheme members.

Also, do keep in mind that many pension funds are likely to be reporting good growth this year given the performance of many of the equity markets, certain categories of properties etc. Over time, this may help grow the pool of funds within the DB Scheme for future beneficiaries.