2 years shy of 40 years public sector pensions

D

Doodlemoll

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I am in the pre 95 pension scheme D rate with 38 years fulltime service in the public sector. Salary is 45555. Plan was to retire with 40 years service. To retire now instead of working for another 2 years is tempting but is it financially worthwhile?
 
How can we say anything ? no idea of what your pension will be now or in two years time?
No idea what your living expenses are?
No idea what you hope to achieve after retirement?
 
I am taking it that you are 58 and if you retire now with 38 years service it will be on a Cost Neutral basis?

So, if you continue for 2 more years you can expect a pension of about €22,780 pa ( plus lump sum of €68,330). If you take CNER now, your pension should be about €19,500 (plus lump sum of about €62,400). After tax at 20% the difference is about €2,660 per annum. Also, there is a loss of €5,900 tax free in the lump sum.

I suppose only you can answer whether this is (a) viable and (b) worthwhile.
 
Early Riser on the ball with figures. I’m now retired over 2 years. I was in your predicament beforehand but when I did the maths I felt I’d be leaving too much behind and soldiered on til I hit the magical 60. As with most things financial it’s a personal situation and choice. All I can add is that the 2 years you have left will go pretty fast and you won’t really miss it. If you do decide to stay on til 60. I’d recommend making a plan for those 2 years and what you want out of them. Good luck.
 
Thanks, all your replies are very helpful, Im warming to the prospect of working for just 2 more years and will plan for retiring at 60, what's another 2 years
 
And I did the opposite of Vendissimo, I retired rather than staying on for the final 2 years that would have brought me to 60. I had 38.5 years service, the maths worked for me, and I decided to go.

I am 4 months retired now and I haven't regretted it so far!

Doodlemoll, you should do a pre-retirement course if you haven't already done one. I could only get a course 6 weeks before I retired, which was too short a time. The ideal time is about 2 years before retiring, it allows for some financial planning. In the current climate, I'm not sure how the courses will run, worth checking out though.
 
Is it not the case that you are unable to draw down your pension before the age of 60 as a public servant? In other words you could leave at 58 but would be unable to draw down your reduced pension until 60.
 
KOW said:
Is it not the case that you are unable to draw down your pension before the age of 60 as a public servant? In other words you could leave at 58 but would be unable to draw down your reduced pension until 60.
Click to expand...

It is possible to retire after the age of 50 and receive an actuarially reduced pension immediately based on the number of years service. This is for pre-95 staff, I'm not sure about newer pension arrangements.

It is also possible to retire early (after 50) and "park" the pension until 60 - in this case it won't be actuarially reduced.
 
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