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.
 
Doodlemoll said:
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?
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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.
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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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