LGPS Pension... What to do

FreddieM

I know I need to find an IFA but not sure where to start. I contributed to the LGPS system while working for a housing association/City Council for 12 years. Should I leave it there or pull it out and place it somewhere better. I am just over 60 and am now self employed, so at a lost as to what to do next..... Any ideas?

quotememiserable

Well, there almost certainly isn't anywhere better because its index linked and gauranteed, so whatever happens to interest rates, inflation, exchange rates, longevity or the stock market, the pension is unnaffected. Anywhere you move it to will mean you carry all those risks.

saver861

FreddieM wrote: »

I know I need to find an IFA but not sure where to start. I contributed to the LGPS system while working for a housing association/City Council for 12 years. Should I leave it there or pull it out and place it somewhere better. I am just over 60 and am now self employed, so at a lost as to what to do next..... Any ideas?

I'm not sure you will get anywhere better esp if you are self employed. If you are over 60 then this will be available to you within a few years in any case which will have risen with inflation and will be final salary.

In addition, if you were to go off ill, you could draw on it, although the requirements for this have become more stringent.

I'd be getting pension statements and up to date figures for a start.

FreddieM

Thanks for that, I will get onto it tomorrow, there's just so much going on out there... There must be thousands asking similar questions. I can't see why the government would encourage people to take their pensions out early... And that's just for a start

xylophone

http://www.lgps.org.uk/lge/core/page.do?pageId=101760

http://www.lgps.org.uk/lge/core/page.do?pageId=101769

https://www.gov.uk/new-state-pension/overview

https://www.gov.uk/state-pension-statement

saver861

FreddieM wrote: »

Thanks for that, I will get onto it tomorrow, there's just so much going on out there... There must be thousands asking similar questions. I can't see why the government would encourage people to take their pensions out early... And that's just for a start

Well the little man on the telly said tonight that a survey had been done and 85% of the peeps did not understand the tax implications of their pensions. So, at least 85% will have questions - so long as they don't all come on here and start a thread we should be ok :j

I don't think they are encouraging to cash in the pensions, rather opening up the options, particularly due to the very poor annuity rates.

I think they are banking on the fact that those who are prudent enough to have a pension will be prudent enough to keep it ....

mgdavid

FreddieM wrote: »

Thanks for that, I will get onto it tomorrow, there's just so much going on out there... There must be thousands asking similar questions. I can't see why the government would encourage people to take their pensions out early... And that's just for a start

They aren't.
They are making it possible.
It is then up to individuals to take personal responsibility for their own money and how and when they spend it.

chiefie

You can take it now with a 25% reduction at age 60

atush

unless you are of very poor health and with no dependents, I would say 100% leave it.

Teaandscones

atush wrote: »

unless you are of very poor health and with no dependents, I would say 100% leave it.

I agree as the actuarial reduction factor of 25% for 5 years early in the LGPS is rubbish value unless you are in very poor health. The exception would be if you left the LGPS more than 13 years ago, in which case you should qualify for rule of 85 protection at age 60. If that is the case you may as well take the pension even if you don't need it yet.

System

Hi

Well perhaps you are not getting annual statements, and were not written to 3 months prior to your 60th birthday listing your options.

Both happened when I worked for the "LGPS".

However if you have an update then you can assess it's value in terms of a guaranteed income for life and perhaps the life of any surviving partner.

Index linked, so we have a 1.2% increase to look forward to on the 30th April 2015, and an annual newsletter every 2 years or so.