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

hyubh

sng165 wrote: »

I left the pension scheme in 2006 (not 2008 as I'd thought)

Where do you stand with the 85 year rule? Because if you don't fully benefit, even taking the pension at 60 will involve a reduction.

its only with my former employers consent that I can take it early - and that's highly unlikely!

Indeed, given the cost implications. However, they will need to have a written 'discretions policy' saying whether they might.

or transfer it.

If the CETV is over 30K, then by law, the LGPS fund (as the scheme administrator) will require you to have taken independent financial advice before doing that... and this advice will cost.

To be honest, I think your best bet is just to accept the original terms of the pension, i.e., that you can take it from age 60. It's possible that the scheme rules for pre-2014 leavers will get changed in the future to align with those for later leavers. However, even if that happens, you should think carefully before taking advantage given the additional reductions involved.

xylophone

You might consider starting a SIPP - you could contribute up to your net relevant earnings while you are working (will be grossed up by tax relief claimed by the provider) and up to £2880 (grossed up to £3600 after tax relief claimed by the provider) when you have no relevant earnings.

http://www.telegraph.co.uk/finance/personalfinance/pensions/11012663/Tax-loophole-boost-your-pension-by-88pc-a-year.html

http://www.hl.co.uk/pensions/sipp?theSource=PCHLS&Override=0&adg=G+HLBS+HLS&gclid=COyNuPO5ssYCFYLJtAodNCsIZw

onesixfive

Having trawled through all your links - and thanks very much -

In summary:
I guess I am looking at about £7k a year - taxable-(but hopefully payable for a longer period since I hope to live long after I'm 55!), plus around £25k lump sum. This is if I just ask from them from LGPS & bear their reductions (but benefit from their perks too)


These figures will include any increases I may get in April 2016 before I cash in next June, but reduce the then monthly by approx. 25% & lump sum by approx. 11%. - Can they refuse to give me this ?


Alternatively I could possibly increase the monthly amount by asking an advisor for a CETV or transfer value & potentially moving it - but this may reduce the amount(s). - not too sure what will happen to lump sum here??


Have I finally grasped this ???

atush

If you transfer the pension to a DC pension, then you would receive 25% of the CETV as a TFLS.

The amount of income the 75% would get you would depend on what you do with the pot (ie buy an annuity, use drawdow etc). but as a generaly rule of thumb you can think abt 4%.

xylophone

If you intend to live well beyond your 56th year then transferring out of your DB pension could be a very unwise move - I knew a DB pensioner who lived to just short of her 99th birthday and am acquainted with a couple of others now approaching their mid-nineties - be very careful!

http://www.moneyobserver.com/opinion/pension-clinic-should-you-transfer-out-your-defined-benefit-scheme

You will need expert advice from an IFA qualified and authorised in pension transfer - expect a big fee - and you may well find great difficulty in getting a sign off.

xylophone

http://www.spfo.org.uk/?articleid=9415

"Freedom and Choice" Q and A might be worth a look?