Public sector pay deal increase 1st march 23 affect retirement date

[Doodlemoll]

I'm ready to retire with 40 years service pre 95. Haven't set the date yet. Lumpsum will be 1.5 x final salary. With the pay increase of 2% expected 1st march is it better to wait till 1st march instead of year end?

 

[PebbleBeach2020]

Yes it would be better. Your salary will go up 2% so you will get 3% more in your lump sum.

 

[Doodlemoll]

That is great thanks

 

[_OkGo_]

so you will get 3% more in your lump sum.

Where is the 3% coming from? It's still 2% for the lumpsum.

 

[ClubMan]

Where is the 3% coming from? It's still 2% for the lumpsum.

1.5 times the 2% increment on total salary.
Obviously not a 3% bigger lump sum overall.
I suspect that it was just phrased unclearly?

 

[_OkGo_]

1.5 times the 2% increment on total salary.

But that is wrong, you don't multiply the the increase by 1.5x

Salary: €100k >> €102k (2%)
Lumpsum: €150k >> €153k (still 2%)

 

[ClubMan]

Oops. You're right!