Local Govt Scheme Pension too early!

kidmugsy

On my final salary pension I could have opted for no lump sum and a bigger pension, but that would not have altered my widow's pension - it's based on the standard combo of pension/lump sum irrespective of my choice for myself. Do check your T&Cs.

grnglide

The table used to do the calculation has different rates for married and single as well as male and female. I could get £6.32 per £100 if unmarried but only £5.63 per £100 if married so it "ought" to be included in the widows pension.

Having spoken to them they say that it "increases the pension based on years service and salary on leaving and then calculate the Pensions Increase on that".

Strangely he said that it is "extremely rare" to convert the lump sum to increase the pension as it would take "many years" to get the money back. Yes I could invest the lump sum, but at some point I will need income rather than savings.

So now I have a choice of increased pension (possibly paid into AVCs with salary sacrifice), lump sump with smaller pension (possibly paid into AVCs (and scope for paying savings into it) or just take the standard money and do nothing!

If I hadnt thought about it, it wouldnt be complicated!

kidmugsy

"at some point I will need income rather than savings": so the thing to do is work out the most efficient way to get that income. It seems to me that a strong contender is your idea of taking max pension from the LGPS and effectively recycling it by salary sacrifice. The rules against "recycling" are aimed only at lump sums.