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Have I done the right thing......? Does it matter?
seven-day-weekend
Posts: 36,755 Forumite
I am 60 on Wednesday and have a deferred LGPS which I cannot take without reduction until 14 August 2014, by the terms of the 85-year rule.
However, I can take it WITH a reduction from when I am 60.
I had a load of paperwork from them at the end of December offering me the option of taking my reduced Pension. The figures were £5461 lump sum and £1938 p.a pension. Alternatively, I could take a 25% lump sum of £10259 by giving up £400 of my pension (is that yearly or just once??). Also options in between.
Anyway, considering my pension is so small and I don't need the money right now, I have said I don't wish to take it yet. I did confirm that after I am 60 I can take it at any time with the appropriate reduction.
Have I done the right thing and does it matter, bearing in mind that from Wednesday I can take it at any time? Thanks.
(ETA I start getting my State Pension of £102 pw on February 1st).
However, I can take it WITH a reduction from when I am 60.
I had a load of paperwork from them at the end of December offering me the option of taking my reduced Pension. The figures were £5461 lump sum and £1938 p.a pension. Alternatively, I could take a 25% lump sum of £10259 by giving up £400 of my pension (is that yearly or just once??). Also options in between.
Anyway, considering my pension is so small and I don't need the money right now, I have said I don't wish to take it yet. I did confirm that after I am 60 I can take it at any time with the appropriate reduction.
Have I done the right thing and does it matter, bearing in mind that from Wednesday I can take it at any time? Thanks.
(ETA I start getting my State Pension of £102 pw on February 1st).
(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
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Comments
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The £400 pension you give up if you opt for the higher lump sum will be £400 less per year EVERY year0
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Thanks Boxerfan, that's cleared that bit up then!(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
How much will you get from August 2014?FIRE !!!0
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Income tax (and possibly savings interest gains) will also come into this equation, oh happy days
Trying to keep it simple...0 -
(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
EdInvestor wrote: »Income tax (and possibly savings interest gains) will also come into this equation, oh happy days
I don't pay tax at the moment and don't think I will pay any for a year or two at least if I just have my State Pension and the little bit of rent from my UK house (as I am carrying forward a loss made last year). If I take my LG Pension in 2014, I will be nearly 65 and at 65 my tax code will go up, so hopefully I'll have little or none to pay then either.:)
One can dream.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
seven-day-weekend wrote: »Don't know but it is index-linked.
You need to find the starting rate in 2014 so we can calculate whether you should go now.It's possible it would be bettter to do this, depends on how many years it would take to recoup the missing 4-5 years and how you see your long term health/life expectancy. Any effect on spouse's pension (if there is one) if you go early?Trying to keep it simple...0 -
I have 'gone' already if you mean left employment; I have not worked since 2004.
I did ask them for a projection at 2014 once but they said they couldn't tell me as it depended on the rate of index-linking.
I think the spouse's pension is half of whatever the pension is when I snuff it, so whatever I lose will be reflected in that.
It is the final salary Local Government Scheme.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0
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