Cashing in my wife's LGPS pension

Silvertabby

woolly_wombat wrote: »

Out of interest, what would your wife expect to receive from her LGPS at 67?

Hmm, Silvertabby has, from memory, repeatedly warned that transfer values from LGPS are poor.

Commutation rates are also notoriously poor from LGPS.

Yes - transfer factors are set by GAD rather than linked to gilts.

1:12. Give up £1 of pension for the rest of your life in return for £12 tax free cash now.

snowqueen555

jerrysimon wrote: »

My wife currently has am LGPS pension worth around £3K lump sum and £3K/year. or 10K lump sum 1.5K/year even if we take it now. More if we leave it till 60K.

I am 58 and she is 57. We have effectively retired early (2 years ago) and have almost full state pensions payable at 66.5 and 67 years old when we will get around 15K addition/year between us both.

I have a DB pension which I drew early at 56.5 which pays out 20k/year and my wife still does six hours a week and gets around £250/month (no tax) hence why we have not drawn her pension. We are comfortable with no mortgage and around 30K capital. Not been on any large holidays not sure if we want to. We are loving retirement even though it took about a year to settle in. New grandchildren, voluntary work, and exploring the UK on short breaks fills the gaps, not to mention completely redecorating/refurbing the house, gardening etc

Just chiming in to say this sounds fantastic! Enjoy

jerrysimon

woolly_wombat wrote: »

Out of interest, what would your wife expect to receive from her LGPS at 67?

According to the last years statement update in 2018, £3776 lump sum and £3302/year pension.

As those original figure I gave for 55 and 60 were produced in 2016, I guess they would be a little more now.

Having dicussed it with my wife, we will probably leave it now until her current work finishes in a year or so. The normal pension without conversion for the max lump sum will effectively replace what she is earning now.

OldBeanz

If the master plan is to downsize when one of you dies why not do that now. You will both be fit enough to manage the move and the capital released can help your daughter. Selling a house and getting rid of your goods and chattels at one go when in mourning is not something I would want to do.