Local Government Pension Scheme
Comments
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I see the rules surrounding transferring out of a DB Scheme not as a limitation but as a safety measure for employees since any receiving scheme is almost certain to insist on specific advice from a properly qualified IFA..
The limitation I was referring to was not anything to do with safety measures as that will still continue with an IFA still required to sign off any transfer.
The limitation I was referring to was for Public Sector unfunded scheme members being unable to transfer out after April 2015.0 -
HiLike the others, I'm pretty sure the OP was asking whether a lump sum could be taken 'out of band' either immediately or after DC pensions are liberalised next year, not whether a lump sum was involved (or could be involved) in the pension benefits taken normally.
Is this you idea of something better than the LGA's efforts...?
Different.0 -
Thanks to everyone that responded.
After all my research I have concluded that the only way she can get any benefit from this pension prior to the age 60 is to request her former employer to allow payment of pension early. This we have done but they have said it will take 3 months to respond and the likely outcome is a big firm no.
But to answer some of the questions posed, I already draw a LG pension at 62 so there is no movement there, I am not entitled to any state benefits because my pension exceeds their limits. I need to pay of my mortgage soon and don't have the capital, I cannot remortgage because of my age and low income. My wife has 25 years continuous service in the scheme to 2011 so catch 22. unless someone else has any flashes of inspiration.0 -
Equity release is one option that may help. It may not pay enough to clear the mortgage. Depends on the property value and ages of those involved.
If not viable you can contact your mortgage provider to tell them that you're having difficulty repaying and ask them to switch to repayment from the time you're both getting your state pensions, leaving it interest only or part interest only and part repayment until then. They might also be willing to port the mortgage if you downsize to reduce the amount owed.
While these things won't provide immediate repayment, the future availability of lump sums and additional income will be a plan that the lender can use to know that it's not going to last forever.0 -
ages of those involved.
The OP and spouse are aged 62 and 57 so on the young side for ER?
I suppose there's the "nuclear option" next April? Posts 7 and 20?
The OP and spouse should shortly be able to obtain accurate statements of their State Pensions.
https://uk.finance.yahoo.com/news/flat-rate-state-pension-much-110513845.html0 -
Young to be good candidates for equity release but that will mainly restrict how much can be borrowed. So it might not be enough to fully clear the mortgage.
The lender should come up with something that makes transferring the pension unnecessary. They are supposed to be accepting proposals that have some eventual end and there do seem to be proposals to use lump sums and income available that should achieve that.0 -
I have to say, my personal opinion is that to suggest ER for people this young is almost criminal due to the awful outcome for a normal LE.
But then again you seem to be the rockstar- what do I know?0
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