Early Benefits and AAB All-in-one calculator.
If you take your pension before your ‘Normal Pension Age’ the benefits are actuarially reduced to take account that you will be paid them for longer…up to 10 years longer!
This sheet allows you to enter your age in years and months and see what effect it will have on your pension.
Taking benefits early means you are better off for a number of years, the sheet has tabs that also show at what age you stop being better off.
I explain more on this post: https://dfountain.co.uk/lose-20-not-true/
Hi David
Like many others, I have learnt much from your TES contributions and your website resources.
I have used your FinalSalaryNPA60 Early Benefits and AAB spreadsheet as preparation for my own early retirement, but have a couple of queries for you.
In the formula for calculating the Time to Catch Up, should the gross pension (before tax) not be used, as the automatic lump sum is tax free? When I changed the formula to 3*($G$5), the results were then in line with the example you used in the corresponding video.
In the formulae for calculating the Total Benefit Difference At This Age should the gross pension (before tax) not be used, rather than the lump sum difference, as the full lump sum will be received at age 60? When I changed the formula to 3*($G$5), the results lined up with the Time to Catch Up figures.
Thanks again for your very useful resources.
Yes, good spot thank you.