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Retire and then go back question

Discussion in 'Retirement' started by tonyuk, May 12, 2019.

  1. tonyuk

    tonyuk Occasional commenter

    I guess my next question is if I leave before 60 and then rejoin the scheme am I not going back into a new 1/57th and thus don't really loose anything?
  2. diddydave

    diddydave Established commenter

    The 'lose' term is a bit misleading but I think I know what you mean and yes you will. If you take your pension before 60 you have to take both the final salary (80ths scheme) and the career average (57ths scheme) - you lose a bit on the 80ths and more on the 57ths...BUT...you get them for longer so it takes many years before you actually start 'losing' money - well after you get the state pension added in.

    You would then start a new 57ths scheme, I think, but that would be building up again from scratch. Still it is, I believe, a good scheme and would probably be worth looking at the faster accrual options.

    The AAB for 59+11/12ths I believe is:
    a) for the 80ths scheme 99.8%
    b) for the 57ths scheme 69.2%
    This reflects the fact that you are paid 1 month more in the 80ths and 7 YEARS more in the 57ths...I've not done the maths on the latter but I imagine its still a long time before you are technically 'worse off'.

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