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Can I run a SIPP alongside my LGPS pension?

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Comments

  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Will you retire at 60, or would you want to go earlier?

    What are the charges, funds available, perfomance?

    Is there salary sacrfice (dso you save on nics ) or is it just basic rate TR you get?
  • amandajc
    amandajc Posts: 217 Forumite
    edited 22 March 2014 at 9:34PM
    Thanks atush. I can't retire earlier than 60. This is an LGPS defined benefit pension so the penalties for taking it early are high (27% for going at 60 rather than 66 - earlier than that is completely untenable). I would ideally like to go at 60, defer the pension and fund those 6 years some way or another.

    Salary sacrifice doesn't apply either. I pay AVCs but they are not supplemented by my employer (I wouldn't expect it - my pension is valuable enough as it is), and they cannot be cashed in until the main pension is also accessed (which, as I've said, I'm hoping to defer till my normal retirement age of 66 in order to get it at full value.) I do have a ongoing S&S ISA which I pay into monthly.

    My question is about which type of personal pension is best suited to help fund the years between 60 and 66 when I will be without salary or occupational pension. I have a longstanding FSAVC with the Co-Op but don't know whether to pay more in or start afresh with a personal pension and transfer in my existing FSAVC fund. The charges on the FSAVC are quoted as "less than 1%" but I have no choice of funds etc. It does have a "guaranteed minimum" cash value . However I don't know whether this is something I should take into consideration or not.
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Thanks atush. I can't retire earlier than 60. This is an LGPS defined benefit pension so the penalties for taking it early are high (27% for going at 60 rather than 66 - earlier than that is completely untenable). I would ideally like to go at 60, defer the pension and fund those 6 years some way or another.

    Herein lies the benefit to you of a separate DC pension now. As it can be taken so you can retire at 60 or less until your DB pension come in/

    As for the Fsave in your case, with no Salary sac, and no choice of funds and high fees it sounds like a PP would be far better for you.

    Which one will depend on what you want to invest in and how much per month. You can pay an IFa to set one up or you can go DIY.

    DIY can be better if we aren't talking high amts per month. Look at cavendish online and start deciding/researching if you want or or are capable of running your own investments. Isn't rocket science, but might take some time to read up.
  • amandajc
    amandajc Posts: 217 Forumite
    Thanks atush. I'm fairly confident that I can do my own research so will look at the options as regards transferring my FSAVC into a personal pension.
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