lump sum conversion

Brynglas_3

OK Mike, thanks.

sdooley

I would not commute; it's tempting to take the cash but the inflation-linked pension will help keep you above water if you live a long time and/or if inflation gets a lot worse. Sure if you die sooner you lose out but you're not around to enjoy the money then anyway so what do you care?

EdInvestor

It's a poor commutation rate: so to be avoided if possible especially if you are unhappy to take any risk with investing your money.

If you can afford it, it may be sensible to accumulate more cash savings to add to the basic lump sum by deferring taking your state pension for a few years.

Also note that if your husband has been working abroad he can make up missing years by paying voluntary class 2 contributions up to 9 years in arrears.These are an absolute bargain at under a tenner per month

Forget about the S2P, that is covered by your LA pension.

Oblivion

EdInvestor wrote: »

It's a poor commutation rate: so to be avoided if possible especially if you are unhappy to take any risk with investing your money.

12:1 a poor commutation rate? Could you expand on your thinking please.

Dave.

EdInvestor

A good commutation rate would be 20:1 or more.

Oblivion

EdInvestor wrote: »

A good commutation rate would be 20:1 or more.

Right, thanks. Are there many schemes that provide that?


Dave.

Andy_L

Don't know, anecdotally the people i've seen on this board making this decision with Private Sector final salary schems have commutation rates in the 16:1 plus region.

Public sector schemes (almost?) all have a 12:1 rate.

I suspose that, technically speaking, all money schemes provide a "fair" rate