Local gov. early pension prep

Discussion in 'Public sector pensions' started by Simonn, Apr 26, 2016.

  1. Simonn

    Simonn New Member

    Posts:
    2
    Hi

    I am making a plan for early retirement. At the moment I am only 27 (born Sept 1988), but pension is something you have to plan for early I guess.

    I started working in local government in Sept 2015.

    I would like to retire at 55 or 56. Can I buy back service to make sure I have the 40 years service at that age? I would have to buy back around 10 years. But I guess it is better to buy them back now as I am on lower salary now and it's % of salary that they charge you right?

    Thanks,
    Simon
     
  2. POC

    POC Frequent Poster

    Posts:
    65
    Have you been paying Superannuation since you started? If so, there is nothing to buy back. However if you weren't paying Superannuation because you were temporary for example - then you can buy that back.
    I think what you really mean is buying Notional Service. This is a way of having extra years when you reach retirement. You need to know what age you can retire at, which varies depending on your job and when you started.
    For example I could retire and receive my pension at 60, but I don't have to retire til 65. I need 40 years for a full pension. The longer I stay, the more years service I'll have. I am also paying Notional Service which has been calculated based on retiring at 65, but I could've chosen to pay more so I could retire at 60 instead. I pay this monthly until I retire. If I choose instead to retire between 50 and 60, I will receive an Actuarially Reduced pension, but it is impossible for me to have 40 years service before I turn 60.
     
  3. Simonn

    Simonn New Member

    Posts:
    2
    Yes, I meant Notional Service. I am a member of the new regime, the Single Pension Scheme. Since I would like to retire early as well I would like to have those 40 years at the age of say 56. I would still get penalties for retiring before 65, but I wonder does it make a big difference to have the 40 years service requirement met.