Civil Service-lump sum or annual pension max? Lump sum investment options

kidmugsy

Kynthia wrote: »

However if someone only has DB pensions and their children are now grown, would potential inheritance be a consideration?

That would be a personal choice. If you thought it might be satisfying to do that with your own money, why not? Personally I rate it far behind ensuring that my widow be comfortable and secure. So I would want a lump sum to help achieve that, with anything unused by her being left to the offspring.

In my own case I took a maximum TFLS and so far it has worked out well, partly by luck. I advocate that every couple should try to analyse their own case rather than unthinkingly succumb to pressure from noisy colleagues.

EDIT: oops I've answered this twice. I must be too tired - bed time!

Andy_L

As a tax payer I would love you to take the maximum lump sum because, at 1:12, its an appalling deal.

gillmc22

Andy L

Funnily enough I am a taxpayer too and have been since I was 17 so your comment is rather redundant isn't it? Particularly if your implication is that I'm somehow not entitled to my pension which has been earned.

woolly_wombat

gillmc22 wrote: »

Andy L

Funnily enough I am a taxpayer too and have been since I was 17 so your comment is rather redundant isn't it? Particularly if your implication is that I'm somehow not entitled to my pension which has been earned.

It's just Andy's shorthand way of pointing out that the commutation rate isn't very good, and that if you opt for the maximum lump sum you are likely to extract less value from your pension in the long term (thus benefiting the 'taxpayer').

For comparison, I have just been offered 1:22 commutation rate at 60 from a former employer's scheme.

mgdavid

gillmc22 wrote: »

Andy L

Funnily enough I am a taxpayer too and have been since I was 17 so your comment is rather redundant isn't it? Particularly if your implication is that I'm somehow not entitled to my pension which has been earned.

No; you've misunderstood the point. The inference is that the commutation rate offered to you is poor and hence benefits all the other taxpayers (by retaining more cash in the government's coffers).

Andy_L

gillmc22 wrote: »

Andy L

Funnily enough I am a taxpayer too and have been since I was 17 so your comment is rather redundant isn't it? Particularly if your implication is that I'm somehow not entitled to my pension which has been earned.

I'm not sure how you jumped to that conclusion.

and, if we're playing top trumps, I was a tax payerat 16 so I win and, at 1:12, I won't be commuting any of the Public Sector pension I was accumulating

kidmugsy

Andy_L wrote: »

I was a tax payer at 16 so I win

Golly, spoiled brats. School leaving age was 15 in my day.

Muscle750

gillmc22 wrote: »

Hi, I have 29 years in classic scheme and now in Alpha. I'm planning to retire at 60 with 43 years service. My minimum lump sum will be about £44k and £20k annual pension. I will also receive my post divorce police pension @60 which will give me about £35k lump sum and £14.5k annual pension. Both will be index linked.
I'm inclined to take my maximum CS lump sum which would be about £116k and £16.5k annual pension.
My question is should I go for max lump sum or max index linked pension-my thinking is that although I'll still have a smallish mortgage payment my income would be more than now if I take minimum lump sum and not much less than now if I take maximum? I have 2 adult sons BTW who still live at home but won't by the time I retire��.
Also any recommendations for safe investment options for my lump sum gratefully received������ thanks in advance

So if you have 43 years service and planning to retire at 60 means that you started at 17, however you mention also a pension from the plod am i missing something here or did you start with them at 8 years old! Also the figures you quote only reiterate what i along with many others have stated before that the difference between the Public sector and the Private sector with us having the FS schemes ripped from under my feet are obscene, Ive worked same company for 30 years and at 56 my pension looks like loose change compared to these figures quoted. So a max CS lump sum of £116k and a annual pension of £16.5 K, Or take a £72k hit on the lump sum for an extra £3.5k a year , means you would have to see 81 years old to level it out, And thats just the CS pension. ...........Nice postion to be in courtesy of the tax payer inc us low lifes in the private sector and the treasury making sure the taxes we pay are fairly redistributed..................NOT !!!

Muscle750

John O'Connell, chief executive of the TaxPayers' Alliance, said: "Workers in the private sector are paying for their public sector counterparts to enjoy a retirement they can only dream of, and that disparity has been brutally compounded over the years by politicians continuously launching raids on private pensions.

sham63

Muscle750 wrote: »

John O'Connell, chief executive of the TaxPayers' Alliance, said: "Workers in the private sector are paying for their public sector counterparts to enjoy a retirement they can only dream of, and that disparity has been brutally compounded over the years by politicians continuously launching raids on private pensions.

Yawn.......:whistle: