Lgps

Miss_CC_2

My apologies but I have no real understanding of pensions. I am hoping someone can answer my question. I work for the local authority and am paying in to a lgps. I am 55. Can I take a lump sum payment? I would like to use it as a deposit on a home. I live in Wales if that matters. Thank in advance.

LeoTLion

You can only access LGPS at 55 if you retire early, voluntary, medical or via efficiency grounds.

Your length of membership will dictate how big the lump sum will be, plus you will have the option to commute some annual pension into a lump sum.

Your pension fund will be able to provide advice tailored to your circumstances.

xylophone

I work for the local authority and am paying in to a lgps.

http://www.lgps.org.uk/lge/core/page.do?pageId=157961

atush

The type of pension you have, is not covered under the new rules.

Is this to buy a home you will live in? Or a BTL?

chiefie

Some local authorities may have a flexible retirement policy

Miss_CC_2

live in it.

atush

Do you own now? Can you buy your council house?

pol-zeath

The LGPS is a defined benefit scheme. I believe you would have to transfer you benefits to a defined contribution and then you could access a 25% tax free lump sum. If you have over 30,000 you will need to prove you have taken advice from an independent financial advisor.

System

Hi

The Welsh pension funds send out an excellent ABS, (Annual Benefit Statement) both in English and Welsh.

If you can find / request a copy then tell us your length of service and the date you joined.

How long have you been paying in??

Miss_CC_2

I am a private tennant now so no, I don't own or live in a council house.

atush

unless you are not married or have dependents, and are of not great health and dont expect to live a normal LE, you really should not access your pension early just to buy a home. The pension would be reduced heavily to do this and you owuld not be able to build up more pension in the scheme. If you are if poor health with no spouse/dependents, then you could ask for a CETV value to see about transferring to access your 25%.

You could build up additional pension savings outside your LGPS to use to provide a Lump sum, borrow from family, or build up savings yourself.