Suggestions??

antdon

xylophone wrote: »

MPF?

Presumably the name of the employer? This is a deferred Defined Benefit Scheme where normal pension age was 60?

How does the pension increase in payment?

You will be receiving around £520 (gross) a month in addition to the salary from employment from March next year.

This should enable you to consider making additional contributions to your current pension scheme?

The lump sum will give you an emergency fund - when you you receive it, you can check out which accounts will give you the best return on your savings.

Thanks for the reply... Interesting....

The pension is with Merseyside Pension Fund
It will increase with inflation annually.....

antdon

So... Allowing for tax I will get about £400 / Month... £4800/year.... £28800 + inflation rises over the remaining 6 years until state retirement age...

Is there an issue with taking a pension and reinvesting it in another pension fund??

MallyGirl

once you take anything beyond the 25% tax free element then you are limited to putting no more than £4k into a DC pension annually. There are exceptions for final salary schemes.

xylophone

There are exceptions for final salary schemes.

There are exceptions for defined benefit schemes and certain other cases.

The MPF is a defined benefit scheme and the OP would be taking a scheme pension.

This does not trigger the MPAA.

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/money-purchase-annual-allowance-mpaa/

Defined Benefit arrangements
If you receive a scheme pension from any defined benefit arrangement this will not trigger the MPAA.

Happier_Me

I think you need to have a clearer idea as to how much you:

1.Want as a rainy day fund when you retire?
2. Need to contribute towards the household finances between ages 60-SPA and beyond state pension age.

You probably also need to consider total household retirement income required when your wife retires also. Is she on track to achieve the extra needed and by what age?

Until you know this I'm not sure how you can work out the gaps in your savings and what age you can retire.

xylophone

So... Allowing for tax I will get about £400 / Month... £4800/year.... £28800 + inflation rises over the remaining 6 years until state retirement age...

https://mpfmembers.org.uk/content/i-left-lgps-deferred-benefit-1-april-2014

Your LGPS (MPF) pension will be in payment for life and offers widow's benefits.

You mention the pension becoming payable at age 60 - is this because you have some protection that allows you to take it in full before age 65? Or are you choosing to take it early?

You are not proposing recycling your lump sum but regarding your pension income as a replacement for some of the earned income that you would choose to pay into your current pension.

https://adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/recycling-of-tax-free-cash/

You are currently in a DC workplace pension scheme? Which one?

antdon

xylophone wrote: »

[/B]

You are currently in a DC workplace pension scheme? Which one?

Its a custom fund arranged by my company's pension advisers with Aviva...

antdon

xylophone wrote: »

[/B]

You mention the pension becoming payable at age 60 - is this because you have some protection that allows you to take it in full before age 65? Or are you choosing to take it early?
[/B]

https://adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/recycling-of-tax-free-cash/


If I have this right... at 60 I have achieved the number of years required for full payment. They recently sent a letter saying it would be paid at 60.

crv1963

I'd form a plan, identify how much you need to live on, add a bit extra because life isn't linear, then decide how you will meet your income needs and when.

Deciding how to meet your income needs may include taking your DB pension and then saving the same amount from your salary into a different pension, possibly a different one from your employers scheme, which when you do finally retire you draw down to zero over a few years until SP kicks in?

Once you have a plan discuss with your wife your ideas and amend it to fit her plans in too. Although younger than you she may also want to retire or carry on working. If she wants to carry on when does she want to retire? If retiring at the same time as you decide how you will make provision for her pension needs and look at what income she'll have if you die.

You said you were not in good health, is this life limiting or lifestyle limiting? Will this improve, would retirement help improve it?

You need to have a play around with figures, look at what you want to do personally, as a couple and as a family. Work out a few objectives, test it out, I wouldn't be overly concerned about every possibility or you'll drive yourself round in circles, but do think about some known events- child wanting to learn to drive, replacement purchases, holidays and so on.

I read widely, tested some figures out here and developed our plan, which we are now working at meeting. I suggest you do something similar with a timescale. Do you enjoy your work, does your wife?

antdon

crv1963 wrote: »

I'd form a plan, identify how much you need to live on, add a bit extra because life isn't linear, then decide how you will meet your income needs and when.

Deciding how to meet your income needs may include taking your DB pension and then saving the same amount from your salary into a different pension, possibly a different one from your employers scheme, which when you do finally retire you draw down to zero over a few years until SP kicks in?

Once you have a plan discuss with your wife your ideas and amend it to fit her plans in too. Although younger than you she may also want to retire or carry on working. If she wants to carry on when does she want to retire? If retiring at the same time as you decide how you will make provision for her pension needs and look at what income she'll have if you die.

You said you were not in good health, is this life limiting or lifestyle limiting? Will this improve, would retirement help improve it?

You need to have a play around with figures, look at what you want to do personally, as a couple and as a family. Work out a few objectives, test it out, I wouldn't be overly concerned about every possibility or you'll drive yourself round in circles, but do think about some known events- child wanting to learn to drive, replacement purchases, holidays and so on.

I read widely, tested some figures out here and developed our plan, which we are now working at meeting. I suggest you do something similar with a timescale. Do you enjoy your work, does your wife?

A lot of very wise words..
I have a few health issues both lifestyle and limiting (but hopefully not too much)
I enjoy my current job.... And cant see any way I am likely to retire early...

I have only recently started looking at my pensions...
A lot to learn / work out....