Several pensions

SEK_2

My husband and I have several pensions between us due to past jobs. We are 41 and 38 and want to make sure we are doing what we can for a retirement full of holidays:) We really need an independent financial advisor to take a look at them and advise us what to do with them all. How do I find an IFA and how much do they cost.

Also I am currently with a LPGS pension and I am so confused how it works so if anyone can explain it in simple terms that would be great.

tacpot12

The LPGS Pension can be confusing because it has been changed a number of times, but in simple terms here's how it works; you and your employer pay into the scheme, basically you have no choice about how much you pay, but there is an option that allows you pay half what you normally pay in return for receiving half the benefit - but this is a really bad idea unless you are in arrears with your rent/mortgage and will be homeless if you don't start clearing the arrears!

The 'benefit' builds up in the scheme until you retire. If you've been in the scheme a while, you will have build up benefit at different rates, but you are stuck with what you have built up to date so don't worry about it.

The scheme expects you to retire at 65, and when you retire will pay you a monthly income. The amount it pays will depend on your salary over the years, how long you have been in the scheme, whether you take some of the benefit as a lump sum (you're allowed to take 25% of the total benefit as lump sump), and whether you retire early - if you retire early you will get less money (upto 40% less).

You really only have two choices to make with the LPGS pension; when to retire and whether to take a lump sum or not. Your IFA can help you with both of these decisions.

Expect an IFA to cost about £2000 to review your husband and your pensions. £1000 per person.

To find an IFA, visit https://www.unbiased.co.uk If you want advice on whether to transfer a defined benefit pension such as the LGPS, you should check on the Unbiased website that your IFA has a Pensions Transfer Specialist who holds the AF3 qualification, and get this confirmed in writing by the IFA before you go to see them.

Please post your experience and decisions back onto MSE.

PeacefulWaters

What, specifically, do you expect an IFA to do?

A bit of reading and education may mean you don't need to spend anything.

hyubh

SEK wrote: »

Also I am currently with a LPGS pension and I am so confused how it works so if anyone can explain it in simple terms that would be great.

You definitely don't need an IFA for that. At present, for each £4,900 of salary, you earn £100 of pension, due from your state pension age. At the start of each April, the pension earned to date is revalued to reflect the previous September's CPI figure. As such, the £100 in today's terms will become £100 in tomorrow's terms; this will stay the case were to leave the scheme, and once the pension comes into payment.

Compared to many private sector DB schemes, there are no complexities around different elements of the pension having different levels of inflation proofing. And, unlike a DC scheme, there is no need to bother yourself about investment strategies.

tacpot12

PeacefulWater's is correct that you may not need an IFA. You may find the Money Advice Service can offer you some help if you call them on 0800 138 7777.

xylophone

You are currently a member of a defined benefit scheme.

What is your husband's current pension arrangement?

Are any of your (or his) other pensions deferred defined benefit pensions?

Of any others which are defined contribution arrangements do any have "safeguarded benefits"?

https://www.moneyadviceservice.org.uk/en/categories/types-of-pensions

http://adviser.royallondon.com/pensions/technical-central/information-guidance/transfers/safeguarded-benefits/

Start by making a list of all your pension arrangements and checking out the type of pension against the above.

kidmugsy

Come back here with a list of your pension schemes (other than LGPS), making clear which sort each is e.g. this one is a Group Personal Pension, that one is .... blah,blah, blah. Also list any special features e.g. this one has a Guaranteed Annuity Rate, that one has all its charges paid by your ex-employer, ....

SEK_2

Thanks everyone for your help. I now understand my current LGPS pension a bit better.

The reason I wanted advice is that we have several pensions plus shares and just wanted to make sure that we doing the right thing for our retirement and if we should put the old pensions into new pensions or if we could even do that. We would like to retire earlier than our retirement age of 67.

I have an old LGPS pension from the late 90's which I'm currently waiting for information on and a Standard life pension from my previous job.

My husband has an Army pension - he left the Army in 1997 after 7yrs service. He doesn't have much information about this and has received nothing since he left so I need to find out how to find more info on this. He also has a Clerical and Medical pension from his last job and has currently got a Standard life pension with his current employer.

Once I have collected all the info together I will post here.

xylophone

https://www.moneyforce.org.uk/Managing-money/Plan/Pensions/Military-pensions/Armed-Forces-Pension-Scheme-1975

Is the above relevant to your husband?