Taking Council Pension at 55 instead of 60 - how much can I expect?

onesixfive

I intend to retire at 55 next year.
My husband will be 65 so I'd like to spend some time with him.
I used to work for the local authority & have a deferred council pension which isn't payable until I am 60.
I am now in a low paid job & only work part time.
Current statement shows annual pension at 2021 would be £9300, & retirement grant would be £28k.
I don't think I would be much worse off.
Under new regulations - If I transfer this to another pension provider (in order I may draw this at 55 - instead of 60), how much can I expect to get?

[Deleted User]

I think it's reduced by 5% for each year you take it early so possibly reduced by 25%?

marlot

I wouldn't think you'd need to transfer it; just ask them to start paying early. As said, expect a 5% reduction for each year early - so 25% for 5 years.

xylophone

http://www.twpf.info/article/13018/When-can-I-elect-to-receive-my-deferred-benefits

may be of interest.

Have you enquired of the Local Authority in question about your position?

Although it would be possible to transfer out into a DC scheme why would you wish to do this?

https://www.moneyadviceservice.org.uk/en/articles/transferring-out-of-a-defined-benefit-pension-scheme

atush

The pension would be better and more secure if you took it as DB, and unreduced. Do you have a pension with this new job? A DC pension you could take now?

If not, and you are determined to take it 25% reduced then go ahead. Or ask for a CETV or transfer value. Generally, unless you are of poor health and have no spouse it tends to be better to leave the DB pension where it is.

onesixfive

thanks for those helpful replies.

My employer wont have a pensions scheme until Aug 2016 (by which time I hope to be gone).

I left the LGPS in 2008 & I doubt they would give consent for me to take my pension just on request at 55

atush

They might, but it will be reduced.

BIKER77

Hi,


Is it the LGPS Council Pension?, if so please check this url link.


http://www.lgps2014.org/content/when-can-i-take-it





Hope this as helped.

FatherAbraham

BIKER77 wrote: »

Is it the LGPS Council Pension?, if so please check this url link.


http://www.lgps2014.org/content/when-can-i-take-it


My wife has just taken her LGPS pension early at 60yrs and seen as she is going 6years early ( as state pension age is now 66yrs for women of her age) she will loose 27% of her pension and 11 % of her lump sum.

It's only for the post-April-2014 service that the normal-retirement age is set at the state pension age. Service prior to that has a fixed NRA.

Warmest regards,
FA

onesixfive

I left the pension scheme in 2006 (not 2008 as I'd thought), so reading your links its only with my former employers consent that I can take it early - and that's highly unlikely! - or transfer it.

The reply I received when I enquired of my Local Authority was.....and I quote (in full!)

Thank you for your e-mail.
Because you deferred your benefits before April 2014 the earliest that these can be released as a pension is age 60.
Your other option is to transfer benefits to a scheme that provides 'flexible benefits'.

kidmugsy

sng165 wrote: »

The reply I received when I enquired of my Local Authority was.....and I quote (in full!)

Thank you for your e-mail.
Because you deferred your benefits before April 2014 the earliest that these can be released as a pension is age 60.
Your other option is to transfer benefits to a scheme that provides 'flexible benefits'.

If you want to consider a transfer you could ask your LGPS scheme to quote a Cash Equivalent Transfer Value. You'd then have to consult an IFA. To transfer would be a big step, transferring all the investment risk from the LGPS to your shoulders. So you'd want a large CETV to compensate for that. The IFA would brief you about the risks, and the value of the offer.