Cannot Take Pension Lump Sum without Retiring

corkyefes

Good Morning,
Just wondered if anybody could give me some advice or hopefully been in the same situation.
I have paid into a pension through my work (local government) for a number of years, where I have put in money and so have they.
I looked on the internet about taking a 25% lump sum and taking my pension early, whilst carrying on working full time.

I contacted my pension scheme who have told me i can take a 25% lump sum and an annual payment.
However, they have sent the documents through telling me what i would get, but when i rang them to confirm i could carry on working full time, they have said that I would have to fully retire.

I don't want to do that as i want to carry on working full time and i just planned to use the 25% lump sum to clear all my debt.
Is this correct, can this not be done without retiring? .... I thought you could take 25% after 55 and carry on working full time.

Any advice appreciated.

MallyGirl

all the info about accessing your pension at 55 and the 25% lump sum relations to a DC (direct contribution) pension - a normal personal pension or standard company one.
You have a FS (final salary) pension which does not work in the same way. You cannot just dip into it.

JoeCrystal

To confirm, is this LGPS we are talking about? I think this comes under Flexible Retirement so you would need the employer's permission as well? 

corkyefes

MallyGirl said:

all the info about accessing your pension at 55 and the 25% lump sum relations to a DC (direct contribution) pension - a normal personal pension or standard company one.
You have a FS (final salary) pension which does not work in the same way. You cannot just dip into it.

Right ok, so you can only take 25% lump and not retire, if it is a private pension (set up solely on your own) or a company pension (not local government (council) one)?

So basically I cannot take my pension until l i retire.

I guess nothing would stop me retiring, taking a pension fro and getting a job elsewhere though?

AlanP_2

corkyefes said:

MallyGirl said:

all the info about accessing your pension at 55 and the 25% lump sum relations to a DC (direct contribution) pension - a normal personal pension or standard company one.
You have a FS (final salary) pension which does not work in the same way. You cannot just dip into it.

Right ok, so you can only take 25% lump and not retire, if it is a private pension (set up solely on your own) or a company pension (not local government (council) one)?

So basically I cannot take my pension until l i retire.

I guess nothing would stop me retiring, taking a pension fro and getting a job elsewhere though?

It's not applicable to any pension that is a Defined Benefit one so not limited to local gov / public sector schemes, a company DB would have same restriction.

Nothing to stop you retiring and getting a job elsewhere although if with another LG employer there needs to be a Month + 1 day (from memory) gap I think.

xylophone

You are in LGPS? You have just reached age 55?
https://www.lgpsmember.org/tol/thinking-leaving-when.php

Albermarle

I guess nothing would stop me retiring, taking a pension fro and getting a job elsewhere though?

Just be aware that pension income is taxable and maybe could push you into the next tax bracket if you added it to your new job salary .

atush

Why take a pension early if you dont need the money and continue to work?  Esp as your DB pension is heavily reduced for doing so?

Do you not have any DC pensions or savings and investments?  Have you thought about an AVC attached to your LGPS?