Can I check that my understanding of my pension options are correct?

Muscle750

GunJack wrote: »

Exactly..and pay for the privilege...LPGS is a funded scheme..

Yes its funded by the tax payer there is no such thing as a LGPS pot its just a figure that they give you when you retire that the then tax payer has to fund and pay it. Issue is that alot more is credited to the LGPS by the tax payer than the employers in the private sector to private sector pensions, leaving us way behind in the gold plated pension stakes.

hyubh

Muscle750 wrote: »

Certainly a nice postion to be in, we dont have lavish life styles either but our private sector pensions are way behind in their values, as stated funded by the state, youve obviously done well in AVC of £77k. Us in the private sector who had our FS schemes ripped from under our feet continued to fund these nice LGPS pensions. My employer puts in 5% as do I. How much percent did the taxpayer put into yours month in month out? And ill remember the statement "Working in LGPS is no picnic" . Nor is dragging someone out the ditch or on the side of the m4 at 3 am in the rain either.

Muscle750 wrote: »

Yes its funded by the tax payer there is no such thing as a LGPS pot its just a figure that they give you when you retire that the then tax payer has to fund and pay it. Issue is that alot more is credited to the LGPS by the tax payer than the employers in the private sector to private sector pensions, leaving us way behind in the gold plated pension stakes.

Remind us, how much is Mrs Muscle's LGPS pension...? Had (has) a few decades membership, or something like that, wasn't it...?

FatherAbraham

GunJack wrote: »

More than just a snide dig as the OP has a FS LGPS pension...why??? jealous?? Or just hate anyone in the public sector with a half-decent pension?? Or is it anyone with a FS pension??

No, it's people, with pensions well above the average for their peer group, falsely claiming that their retirement will be "modest" which irritates.

Personally, I think I would be it hard to be jealous of someone who lives in Paradise, but believes that she lives in Hell.

Triumph13

Whilst I definitely deplore some of the knee-jerk public sector bashing that seems to happen on here, I can understand why this is something of a red rag to a bull for some people:

EpsomOldie wrote: »

Hello
I'm lucky enough to - I think - have a reasonable amount to live on provided I live modestly.

With state pension and LGPS, OP's post tax income is going to be well inside the top quartile of all earners. Note earners, not just pensioners. They will also have a paid off house.

I quite accept that 'modestly' may be thought of as a relative term, but relative to the great bulk of the population that is a LOT of money.

westv

I really don't care whether someone descibes their income as modest, lavish or any other adjective. There are more important things in life.

GunJack

Triumph13 wrote: »

With state pension and LGPS, OP's post tax income is going to be well inside the top quartile of all earners. Note earners, not just pensioners. They will also have a paid off house.

I quite accept that 'modestly' may be thought of as a relative term, but relative to the great bulk of the population that is a LOT of money.

Out of interest, where's a good source for this data? It would be interesting to have a scan through.

p.s. I think the OP has a few more years before SP..

kidmugsy

Muscle750 wrote: »

there is no such thing as a LGPS pot

Ar you always so careless about facts?

Triumph13

GunJack wrote: »

Out of interest, where's a good source for this data? It would be interesting to have a scan through.

p.s. I think the OP has a few more years before SP..

National Statistics publishes percentiles before and after tax. It only covers taxpayers though so misses out those who don't earn enough to pay tax.

OP has plenty of tax free cash to cover the four years to SP so might as well think in terms of their post SP income. I trust they have worked out about class 3 NICs to maximise the SP.

Terron

GunJack wrote: »

Out of interest, where's a good source for this data? It would be interesting to have a scan through.

p.s. I think the OP has a few more years before SP..

https://www.gov.uk/government/statistics/percentile-points-from-1-to-99-for-total-income-before-and-after-tax

Triumph13

If we haven't scared the OP off (sorry EpsomOldie), with 3 and a bit years to go to SP, and assuming she has earned enough this year to count as a NIC year, she can probably only pay 2 years of voluntary NICs (total cost approx. £1,500) to try to max her state pension. Have you got a state pension statement yet?
Assuming you had 30 years at April 2016 and no SERPS / S2P, etc then I'm guessing you'll end up with SP of roughly £149 a week. With your max LGPS figure that would give you a total post tax income a tiny smidge under £30k pa. Given that you were thinking in terms of living comfortably off £20k pa that should be plenty of cushion for car replacements, holidays, etc. so probably no need to earmark any of the lump sum for that.
That means that is you take the suggested min lump sum plus 100% of AVCs as TFLS you have £129k of which roughly £22k would go on 2 years of voluntary NICs and 3 and a bit years of filling in for not having your SP yet. £41k goes on the mortgage and £6k on the car leaving £60k in the kitty. Is that enough to do all the renovations around the house? If not would it make sense just to keep making your normal repayments on the mortgage as it seems you will have plenty of 'spare' income to cover the mortgage repayments?