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Should he defer or cash in!!

Son has just got his details froom the Local Government Pension Scheme, he has worked for them for just 22 months. Currently he is temping for the local county council and intends to find employment with the cc in London.

I need your advice, please. He has been given the option whether to deter and the date for payment of the preserved benefits will be when he is 60 yrs, and the sum is £326.12 per rising with inflation and take a lump sum of £978.35. He might also be possible to transfer the fund in another pension. It's such a small sum involved, I am wondering whether it is better to cash in, on the hand if he is looking to work for the cc again to have it preserved and then transfer. Please, what woud be your advice!!

I do not want him to make the wrong choice. When I was a young student nurse, I cash in my supernnuation when I got married, the cash came very handy but I did suffer. Later on when I went back to work, I had to contribute 15% to have a decent pension and I have lost quite a few years. To cut a story short, I retire on 27 yrs of service whereas if I did not withdraw I could have got a few more years. For nurses, it's 40 yrs for a full pension. Thanks

Comments

  • dunstonh
    dunstonh Posts: 121,241 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Leave it where it is probably the most beneficial option. At least until another final salary scheme is available under new employment (if ever). It may be a small amount but it doesnt matter if its still the best thing.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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