Local Govt Deferred pension

Dragon_Lily

Hi

I'm 51 and trying to get my head around the pensions I have (currently 4!). Two are quite small pots- although one is my current pension with my present employer. I have been in the scheme for just over a year.

I have preserved Pensions with Aviva and Local Govt Pension (LGPS)

Aviva pension currently stands at £70K pot and Local Govt pension (LGPS -deferred benefit) ? pot.

My issue is that I cannot get the LGPS to tell me how much my total pot is :mad:. They provide an annual statement (2014 figs were Annual Pension £2880 and lump sum £8650). I worked for local govt for 11 yrs and wasn't on a great salary but I have no idea what the total pot is. I would like to know to have at least some idea what pension I can expect from both Aviva and LGPS combined.

Does anyone know how I can work out how much the total LGPS pot is based on the figures from their statement?

Much appreciation in advance:)

jem16

Dragon_Lily wrote: »

My issue is that I cannot get the LGPS to tell me how much my total pot is :mad:. They provide an annual statement (2014 figs were Annual Pension £2880 and lump sum £8650). I worked for local govt for 11 yrs and wasn't on a great salary but I have no idea what the total pot is.

The LGPS is a Defined Benefit pension and that type of pension does not have a pot. Instead it has a defined set of benefits which is an annual pension and (in some cases) a lump sum. You have been told this figure in your statement.

I would like to know to have at least some idea what pension I can expect from both Aviva and LGPS combined.

LGPS has given you what you can expect - ie annual pension of £2880 and lump sum of £8650.

It's Aviva that is more difficult as that is dependent on stockmarket performance and how you will take that pension - ie drawdown or annuity.

Dunnit

You have a LGPS Defined Benefit pension which is the mutt's nuts of pensions. 90% of the time it makes no sense to turn this into cash as the sum will grow with inflation before and after being claimed, with government backing and no risk to you.
You have 16 years to your state pension and are likely to end up with a pension of £7.5k. These two added together at today's values take you to just under paying income tax.
Without knowing more, it would appear that you would be in a favourable position if you left your LGPS pension alone as a secure inflation linked fall back position.

Dragon_Lily

Thanks, jem16, Dunnit for your comments. MSE forums have such a lot of knowledgeable people!:j

Yes, the Aviva (stakeholder) is more tricky to determine in the longer term, although it has been performing ok for the last 5 yrs, increasing around £2K - £3k pa. The LGPS retirement age is 60. (This is because I meet certain criteria ie dates when I joined and left the scheme)

I will be paying as much as I can into my present pension to try and build up my overall pension pot. I've not always had high paying jobs but have had a pension since I was 21. I find pensions so confusing but I'm trying to understand it more now I'm over 50

I'm going to checkout Martin L pension guide info.