lgps death in service payment and pension

jem16

dazzadub wrote: »

So you say its in his best interest to transfer money to his own pensions to get later in life rather then getting the money now.

Or do you mean take money and invest it into so a isa or something.


What's your suggestion

What is best would depend on what provision he has already made for retirement, what kind of income he wants in retirement and what his needs are now.

If he has sufficient pension provision, including state pension, to see him having more than £10k and thus be a taxpayer, then saving extra into a pension will not gain much tax advantage.

If the extra income is not needed now, he could decide to use the pension from the LGPS to pay into a S&S ISA.

atush

S&S Isa then?

dazzadub

he has 3 private pensions,

1 british armed forces
2 are work pensions, both owrk have some 21k in each and army is around 15k.
he still has approx 15 yrs left of work to also build his pension.
he also has bonds and shares in his current work place which pay divideds every so offen.

he is morgage free, debt free.

he was hoping to use the money he had now to help his daughter out by getting her debt free eg pay car off.

atush

The army pension is FS, and does not have'15K in". It doesn't really have a pot as such. what it has is a value based on the number of years, and his end rank/salary.

So we'd really need to know the projected income from this in retirement.

As it stands, 42 K in total in a pension pot isn't very much. Might see 10K tax free LS, plus an income of abt 1650 per year approx. Not very much really, so will depend on what the Armay pension will be annually.

jem16

dazzadub wrote: »

2 are work pensions, both owrk have some 21k in each and army is around 15k.

What kind of pensions are the 2 that you say have £21k in them? As you keep quoting "pots" that don't exist for final salary schemes, these may well be final salary too so it's important to clarify.

he was hoping to use the money he had now to help his daughter out by getting her debt free eg pay car off.

Nothing wrong with that as long as he looks at the bigger picture first.