# Help with future retirement calculations please!

Discussion in 'Retirement' started by makras, Jan 28, 2020.

1. ### makrasOccasional commenter

I am planning to take early retirement aged 57 and 5 months on 14 August 2022.

I am NPA 60 pre 2007, CARE 65 I think. I would like to have an idea how to calculate these things.

April 2020 final salary in Scotland is £41412. Years of service minimum 16 years.

If I retire at 60 how much do I lose?
What is the yearly percentage I lose?

Thank you very much.

2. ### PrimOccasional commenter

I am no expert on detail but would you not calculate final salary from 2015 and then you lose just short of 5% for every year you take before 60. Have you looked at the TPS calculator on your portal?

makras likes this.
3. ### cpobNew commenter

I believe that the factor for age 57y5m on the NPA60 scheme is 89.6% i.e. 10.4% reduction.

makras likes this.
4. ### makrasOccasional commenter

Thank you both.

Do I take 10.4% of the yearly pension amount?

5. ### cpobNew commenter

makras likes this.
6. ### makrasOccasional commenter

Over to you @diddydave ! But here’s my slightly underestimation.
If you were final salary only then a good approximation would be (16/80) multiplied by 42000 multiplied by 87% yearly pension + 3 times that value lump sum. So 7300 per year + a lump sum of 22000. This assumes full time on approx 40000 over 3 consecutive years in the last 10. Just get in touch with TPS they will tell you much more accurately.

Oops not 87% closer to 89% but still a rough estimate for you to consider.

9. ### makrasOccasional commenter

Thanks yodaami2.

Your calculations and mine seem to be missing something. We're not taking CARE into account I think, I am in Scotland (SPPA), top main grade salary. So average salary in August 22, would be £40800.

here's my calculations

(40800 x 16)/80 = 8160 reduced pension : 8160 x 89%= 7262.4

Lump sum: 7262.4 x 3 = 21787.2

SPPA's calculations is £6008.

I think I'll wait till 2022 to get a correct answer. Also, I have been paying additional pension which is not included.

Either way I'll be retiring anyway

10. ### heldonOccasional commenter

I hope you have other resources as I couldn't live on that.

That’s because I didn’t know when you transitioned so to speak. I know the CARE scheme has a greater hit for early retirement but I didn’t think it would be that big; to make that much of a difference. I was purely going on final salary. I think the CARE scheme works out well if you stay until retirement age. But early ...... ? Good luck. Retire if you can afford it. I’m loving part time so maybe that’s a consideration.

12. ### makrasOccasional commenter

Sadly no one could live on that here in the UK. I'll be living in an African country, but I'll have other resources too.

13. ### makrasOccasional commenter

I moved to CARE 1 April 2016.
I always use the lowest amount to decide whether I can afford it or not. So yes, I can afford it then at 67 I'll get my state pension if I am still alive.

Life is too short and there's more to it than chasing money and suffering from stress.

If you love it part time then you don't need to do anything. Enjoy what you do now but plan ahead. The day you decide you had enough things would be easier for you.

Good luck