To ask about Civil Service pension - extra contributions

[WagathaChristieMystery]

I work in the Civil Service and my retirement age (atm) is 68. I have the option of retiring earlier and receiving an unreduced pension if I get an EPA (the idea is that I pay extra pension contributions each month to build up this allowance).

I’m considering buying EPA as I like the fact it works in the same way as my Civil Service pension and it would let me retire a bit earlier - up to 3 years before normal retirement age.

The only reason why I’m hesitating is I’m wondering if I can hold off doing it for now, and if I can wait for a few year? I’m in my mid-30s and on a decent salary but not on a massive salary by any means, and of course thinking about inflation etc at the moment.

Has anyone bought an EPA and do you think it’s worth it? Should I do it now (mid-30s) or wait for a few years? I’m not really sure if there’s any real benefit to me starting now or waiting for a bit (nothing on the scheme FAQ that gives any suggestion of when is best to start).

Any advice appreciated - thanks!

Just bumping in case anyone has any advice - thanks!

I think they’re covering this in the pensions week thing in mid September. I’m also somewhat baffled by added pension.

Won't the contributions just go higher the longer you leave it? You could try asking on the moneysavingexpert forum.

I can’t help but giving a further bump as I’m considering this too although I’m a decade older than you. I’ve looked at added pension as well but that’s ridiculously expensive.

www.eventsforce.net/dods/9920/home found the pensions week link.

Never heard of this, thanks for posting OP

Dh is in civil service so will ask him about it.

Those pensions things never seem to actually clear anything up!

also confused about EPA

Glad it’s not just me who’s a bit stumped a that the variety of different added pension options!! It’s not easy to understand what the benefits/drawbacks of each of them are and which one to go for (if any)! I’m just getting increasingly resentful at my ever-increasing retirement age, and trying to do something now so I can actually retire one day haha.

I’ve always found them really useful, but I’ve not been to the added pension one before.

Does anyone know where I could go to get a bit more advice on EPA please? A poster mentioned a Pensions Week or something - do you know if that’s happening across the CS?

As far as I know it’s open to everyone, I posted the link further up. I’ve just looked and there’s a page with contact info for specific enquiries that you’re probably better off with. www.eventsforce.net/dods/frontend/reg/tOtherPage.csp?pageID=3825951&ef_sel_menu=26287&eventID=9920

Did you decide what to do, OP? I'm mid-30s, due to retire aged 68 too. I'm not going to work that long; my dad died at 62. I'm trying to decide whether I pay an additional contribution to buy an EPA portion or make some other kind of (private) provision - and suss out how to claim the tax relief. It says the level of contribution is linked to a member's age but I can't really get a feel for what sort of figures I'd be paying for, say, the next 30 years!

I've just found the calculator and it looks like I'd need to pay 3.2% of my pensionable earning per month for an EPA-3 now. If I pretend I'm 5 years older it shows as 3.5%; 10 years older as 4%. It seems to go a bit funny after that on the modeller, as at some point the normal pension age is 67 and so the contributions change. I'm due to pay off my student loan in around 2 years so weighing up doing this now or then...

With EPA you aren't getting the employer contribution of about 20% that's why it is so expensive. I found a calculator that showed the lump sum equivalent or monthly amount and it was huge. Uncomfortably it is a big gamble on how long you will live for after retiring whether it is financially beneficial.
The reduction for taking early isn't that bad. The modeller looks worse because of course not adding extra years' earnings. It is really 4 per cent reduction per year.

I'm applying for EPA from next April- I wish I'd done it before. You make your additional contribution before tax and NI and it increases with inflation each year. I can buy two years extra due to my age but that will still mean I only have to reduce my pension by 5 years rather than 7 if I want to go at 60. Im going to top with added pension to further reduce the impact of going early.