Advice please transferring public pension to private

Superscrooge

Initial consultation with an IFA is often free and of course the pensions advisory service is free.

Local Government Pension schemes often have extra benefits. So ensure you are aware of any perks you are giving up by withdrawing from the fund.

hyubh

CarolineM61 wrote: »

It is a larger sum, so I think I will need to bite the bullet and fork out for a pensions adviser. Thank you

You should also reflect on why you appear so keen to give up a highly valuable asset. While as a pension credit member you will not have any spousal benefits in the scheme, it will still be a pension for yourself guaranteed to increase by CPI every year until you die. What other pensions do you have, out of interest?

CarolineM61

I have my own public sector pension, which is substantial, but can't touch it until I am 60. This one, which was frozen by my ex prior to our divorce before being subsequently transferred to me, would be a good source to tap into as money very short. Thanks.

dunstonh

The fee for the IFA can be deduced from the pension fund on transfer. So, you dont need the money up front. However, do be aware that statistically, you are likely to be told that transferring it is the wrong thing to do.

Al.

You may be able to draw it earlier, but with an actuarial reduction to reflect the longer timespan (usually, c.+/- 5% pa less) it's in payment. Take a look at this.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/299356/LGPS_E_W_Pension_Credits_Guidance_March_2014.pdf

hyubh

Al. wrote: »

You may be able to draw it earlier, but with an actuarial reduction to reflect the longer timespan (usually, c.+/- 5% pa less) it's in payment. Take a look at this.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/299356/LGPS_E_W_Pension_Credits_Guidance_March_2014.pdf

I didn't think the minimum age for pension credit early retirements in relation to final salary scheme memberships went down to 55. Did they? Ordinary deferred pensions for pre-2014 leavers didn't have their minimum retirement ages move back retrospectively.

Al.

I have a pension credit member client who is taking an actuarially reduced pension from aged 55, instead of waiting to 60/65. Page 17 refers. I'm assuming that the principle extends across the public sector.


https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/236252/20111118PensionsOnDivorceAndDissolutionOfCivilPartnershipsMMP131Nov2011.pdf

hyubh

Al. wrote: »

I have a pension credit member client who is taking an actuarially reduced pension from aged 55, instead of waiting to 60/65. Page 17 refers. I'm assuming that the principle extends across the public sector.

At the risk of stating the obvious, you're referring to a completely different scheme that has always had a different, lower NPA compared to the LGPS. An ordinary pre-2014 DB in the LGPS can't be taken before age 60 without the ex-employer's consent, so allowing an equivalent pension credit member to would be an anomaly. I am of course willing to stand corrected however...

Al.

Yes, I did say that I was assuming the principle of having an actuarial reduction carried across the public sector. I too, am quite happy to be corrected.

CarolineM61

The ex employers of my ex husband have consented to the funds being transferred, so as far as I know that shouldn't be an issue. The issue, according to them is the charges that the new pension provider will enforce to take it. This is what I need advice about. Am waiting for response from PAS and have noted the companies suggested by above posters. Will let you know what PAS advise. Thanks. I am sure I will need an IFA, so am wondering about CAB as they say they have a Pensions Specialist, but if there is a limit on the amount that is being transferred without an IFA, of which my amount is above, then there is little point perhaps? Admit I feel out of my depth!!