LGPS, combine or not?

AlanP_2

That's it in a nutshell, although given how long until she plans on retiring adjusting every couple of years wouldn't cause a big problem.

I use actual figures i.e. pension banked at statement date and AVC pot value at same date (31/03) and work from that each year projecting forwards.

The projected LGPS pension I calculate or on the statement is never going to be that accurate as we have no idea on inflation or pay rises or promotions or how long will be staying at work.

The closer to retirement the more accurate it gets though.

If and when restructures are starting we increase AVC for a for few months and decrease if we survive, and similarly in the last 12-18 months before we retire we will aim to make contributions to a level that gives maximum benefit even if we live off savings for a few months.

Not sure about all the options if there is a residual amount in the AVC pot but the LGPS 2014 scheme guide explains it all quite well.

Silvertabby

Not sure about all the options if there is a residual amount in the AVC pot but the LGPS 2014 scheme guide explains it all quite well. Posted by AlanP

If benefits taken from 'live' employment:

Use the residual to buy extra benefits in the LGPS (the most popular option if that helps)

Pension benefits from the AVC provider

Transfer to another pension scheme (some IFAs may get twitchy about this in view of the LGPS pension purchase option being given up).

Benefits taken from 'deferred' status:

Residual AVC can only used to buy benefits from AVC provider or open market/transfer.

AlanP_2

Silvertabby wrote: »

Benefits taken from 'deferred' status:

Benefits from AVC provider or open market/transfer only.

Can I just confirm :

If taken from a deferred status you can still use it as the tax free element of the overall scheme benefits value with the residual amount (if any) being used as you outlined above?

Thanks

Silvertabby

AlanP wrote: »

Can I just confirm :

If taken from a deferred status you can still use it as the tax free element of the overall scheme benefits value with the residual amount (if any) being used as you outlined above?

Thanks

Yes. It's just the LGPS pension purchase option that won't be available. Sorry - should have said 'residual AVC' for clarity. Have amended.