LGPS - Advice re Top ups

bigtired24

Dear All,

Advice would be gratefully appreciated.

I have seen the previous thread re the above. My position is that pre 2005 I will have circa 26 years protected service, and 14 years at risk if I leave aged 60 rather than 65. Based on my current salary I would lose 1/3rd of my post 2005 service pension value and at current prices that would equate to circa £200 per month which is quite material.

What is the best alternative pensions vehicle, and what cost per month would it be to enable me to equalise this loss, presumably based upon a range of mortality assumptions to make good this loss if the Govt get their way?

Thanks

Justin

Debt_Free_Chick

Outside of the LGPS is likely to be the more expensive option. Have you looked at what it would cost within the LGPS? Or is that the £200 you refer to?

You could play the with numbers here
http://www.pensioncalculator.org.uk/pages/home.php

You would need an idea of the actual amount of pension you want to provide at age 60 e.g. £5,000 or whatever. This calculator uses the same assumptions as the standard stakeholder pension providers use, so you should get a fair projection. However, it still depends on all the assumptions used in the calculator actually being borne out in the future.

bigtired24

£200 per month is the loss to my LGPS if I go at 60. So in effect I am £2400 per year worse off - its the cost of abating my pension for me to go early. So between now and age 60 (I am 44 years old) I need to find an alternative pensions vehicle to pay me £2400 per year (at todays prices) so that my overall pension in value terms, adding the two pensiond together is the same as would I would have got if the Govt had left my LGPS alone.

Does this make sense?