A few questions about my Defined Benefit pension.

[bitethebullet]

Hello ,i was a member of a defined benefit scheme for 18.5 years. I was given a figure of almost 14K per year from the age of 65.
I have 2 questions ....
1) How long is this payment made until ? death ?
2) If i was to retire early at 60 would it have much of a bearing on that 14k figure?
I know i should really be getting onto the pension crowd but they are quite slow in answering so if any of you folks have any experience here I'd be grateful, thanks

 

[Clamball]

Yes the benefit is paid until you die. Depending on the rules of your scheme it should increase with the rate of inflation (usually capped) or stay static, €14K today would not have the same buying power compared to 30 years time.
Drawing down your DB pension early will have a very significant impact on it unfortunately, your pension scheme should be able to tell you.

Do you get a statement from them every year, it probably has a lot of good information.

 

[bitethebullet]

Ok thanks for the reply. I'm 14 years from drawdown at the moment. Would love to get out at 55 as I find the job quite stressful.
I must request a statement from them.

 

[Paul O Mahoney]

Do you get a statement from them every year, it probably has a lot of good information.

Can I ask is this a legal requirement for all members of a DB scheme even if someone has left?

My wife and brother in law are in this situation and neither get any communication unless it's bad news.

 

[bitethebullet]

I've left the scheme since 2016 and definitely don't receive an annual statement

 

[Ben147]

2) If i was to retire early at 60 would it have much of a bearing on that 14k figure?

As a rule of thumb you can expect to lose 4% of yer 14k for every year you retire before 65.
So in this case 5 years = 20% off 14k =11.2k at 60.

 

[Athena]

I’ve never had a pension statement. Do any public service employees get these?

Can I ask is this a legal requirement for all members of a DB scheme even if someone has left?

My wife and brother in law are in this situation and neither get any communication unless it's bad news.

 

[bitethebullet]

As a rule of thumb you can expect to lose 4% of yer 14k for every year you retire before 65.
So in this case 5 years = 20% off 14k =11.2k at 60.

Yes that sounds correct. Ideally would love to go at 55 but the pot would be decreased by too much I fear.
I also have a DC pension worth 75 k also. Mortgage paid off.
Would love to give up the unsociable shift hours.

 

[Conan]

I’ve never had a pension statement. Do any public service employees get these?

You can request a Benefit Statement and according to the Pensions Authority, you must be given such within two months of your request. Many private sector schemes automatically provide members with an annual benefit statement, but I am aware that public sector schemes don’t tend to do so.

 

[Clamball]

Both my husband and I get a pension statement annually but we are not state employees and are still with the company.

I don’t know if staff who leave the company continue to get them.

 

[DBL2018]

its Mandatory for schemes to issue statements annually to active members / current employees. It will be mandatory from 1 January 2023 for deferred members, as above you can request a statement and it has to be issued within 2 months.

 

[Paul O Mahoney]

its Mandatory for schemes to issue statements annually to active members / current employees. It will be mandatory from 1 January 2023 for deferred members, as above you can request a statement and it has to be issued within 2 months.

Thanks for that, appreciate the detail too.

 

[Steven Barrett]

Yes that sounds correct. Ideally would love to go at 55 but the pot would be decreased by too much I fear.
I also have a DC pension worth 75 k also. Mortgage paid off.
Would love to give up the unsociable shift hours.

You have to get the trustees permission to draw down your pension early. If the scheme is in deficit, that is also taken into account when they calculate the amount you receive, you have to share in the deficit. It is rare for trustees to allow for members to draw down benefits as early as 55.

 

[Farma1]

Ok thanks for the reply. I'm 14 years from drawdown at the moment. Would love to get out at 55 as I find the job quite stressful.
I must request a statement from them.

First as advised - ask your pension provider - although we can give you general rules many schemes are different e.g. of all the old ones I have one allows retirement at 60 with same benefits.
Secondly, I am sure you are doing, but do look at all the different ways you can solve this problem of being in a stressful job that you don't want to be in. From the little info you've shared, you have some pensions, and the mortgage paid. There are many options beyond either staying in current role at current hours, and stopping work altogether and drawing your pension. Without understanding a full financial picture its hard to estimate how much you need to earn to be happy, but there may well be other roles or industries which would have you working happily from now until nearer pension age.