Wifes pension options.

greenglide

£114 a month over 10 years for an extra £1k a year pension.

That is £13,680 buys £1,000 a year? That sounds like a very reasonable deal, especially if it is index linked.

There is no investment risk here which is significant for someone who "likes to see money sitting in the bank".

AnotherJoe

Triumph13 wrote: »

The max gross she can contribute is the higher of £3,600 and her actual total earnings. That's what I do for Mrs Triumph13.

My bad, I recalled it as she is a non earner but i see its non taxpayer. I stand corrected.

atush

maxie014 wrote: »

Avc was easy to set up for me that was all,ive got 27 years in the scheme and aiming to retire at 62 in 10 years time,they keep tinkering with the scheme not in the members favour,so i thought the avc payments would maybe offset the reductions.

Well is the scheme age is 65, and you want to leave at 62, then taking your DB pension early will mean you lose quite a bit of it.

So instead, you might be better off going forwards, to use a PP or Sipp instead. Which you can use to live on from age 62 to when your DB pension pays out in full

maxie014

Most people leave at 62 atush,the pension dep told me the best deals are at 62 for some reason?

PensionTech

It might be that while the scheme's Normal Retirement Age is 65, you can take unreduced pension without trustee or employer consent from age 62 onwards (i.e. the Normal Pension Age is 62). I have worked on a scheme with exactly these terms.

But it is important for you to understand whether your pension would be reduced for taking it at 62. I would not rely on what the pension department says is the "best deal" as a) they're not allowed to give you advice anyway so I would be surprised if they'd worded it quite like that and b) they may be talking in the general sense, which may not apply to your own circumstances. Only when you understand what the terms are at 62 compared to any other age will you be in a position to work out whether this is good for you or not.

atush

maxie014 wrote: »

Most people leave at 62 atush,the pension dep told me the best deals are at 62 for some reason?

Details Maxie, you want the DETAILS.


What is the SCHEME age?

maxie014

Sorry for being a bit dim atush,but what do you mean the scheme age,the actual retirement age which the schemes best payout should be?

The way it was worded to me was "youll generally find the best deals are available at 62" this was during an informal chat after my avc meeting.

GunJack

maxie014 wrote: »

Sorry for being a bit dim atush,but what do you mean the scheme age,the actual retirement age which the schemes best payout should be?

The way it was worded to me was "youll generally find the best deals are available at 62" this was during an informal chat after my avc meeting.

1. The scheme's Normal Retirement Age or NRA.

2. what the people were alluding to about the 62 bit, may have something to do with Rule of 85 maybe? Where age plus length of service =85 and pension can be taken with no reduction? Someone who knows the lgps should be able to give more details.....

maxie014

GunJack wrote: »

1. The scheme's Normal Retirement Age or NRA.

2. what the people were alluding to about the 62 bit, may have something to do with Rule of 85 maybe? Where age plus length of service =85 and pension can be taken with no reduction? Someone who knows the lgps should be able to give more details.....

The wifes lgps is 65,i thought atush was on about my pension,theres no way i am going beyond 62 in my present job on shifts,all these pie in the sky work till your 70 must have been dreamt up by someone who has sat on their fat a**e for a living.id rather be skint for 5 years than that.

maxie014

gadgetmind wrote: »

My wife also works for local government. As above, AVCs are pointless, so she pays £240pcm into a SIPP, which HMG grosses up even though she pays no tax. At the end of the year, I see what she's actually earned and put in the extra. We effectively put 80% of her earnings into her pension and HMG the other 20%.

At age 55, she'll be able to start accessing it all within her personal allowance and will pay no
tax.

Which company is this with gadgetmind? and how much are the costs if you dont mind me asking.