Can we really stop next year??

Stubod

..sounds like a no brainer to me?...go for it...your numbers add up and you are a long time dead!!

OldBeanz

You should be paying all your taxable income into a LGPS AVC before retiring which will be boosted by 25%.

ukdw

Unlikely that you will be able to put lump sums directly into a SIPP, however you could probably contribute them indirectly either by using savings before you retire or over a number of years at up to £2,880 each a year each after you retire. The benefits of doing this vs ISAs will depend on how much of the SIPP cash you plan to withdraw under the personal allowance or as tax free lump sums.  Worth looking into lump sum recycling rules too before deciding whether to do this.

Also I would suggest looking at where you are likely to be income wise post SP age as the starting point for calculations on which of the DB, lump sum and SIPP drawdown options most effectively allow you to bridge the intervening years.

EP456

OldBeanz said:

You should be paying all your taxable income into a LGPS AVC before retiring which will be boosted by 25%.

Hi OldBeanz, yes I had requested that my AVCs to increase to £1k per month with effect from September but it wasn’t actioned.   I am hoping it will take effect from October, and will then increase again.  Many thanks

EP456

Me again!  13 weeks until retirement - I requested a quote from a deferred DB pension asking how much more annual pension I would get if I gave up the minimum lump sum of just over £27k. The answer is £794 pa for myself only or £748.63 and an additional £374.32 pa for spouse  pension should I die.  Does everyone agree that I am better off taking the lump sum?  Am I right in calculating that it would take 34 years to make up for not taking it?  Many thanks.

Notepad_Phil

Your 34 year calculation (assuming you really want to ignore the spouse pension) ignores inflation - so depending on how good your pension's inflation proofing is, what inflation actually comes and what you would do with the £27k means that the 34 years could be quite a bit less than that in practise.

In your shoes I'd ignore the lump sum unless you have a really good reason to take it or were happy to invest the lump sum in a globally diverse fund and could live with the ups and downs that investments bring.

Croeso69

EP456 said:

Me again!  13 weeks until retirement - I requested a quote from a deferred DB pension asking how much more annual pension I would get if I gave up the minimum lump sum of just over £27k. The answer is £794 pa for myself only or £748.63 and an additional £374.32 pa for spouse  pension should I die.  Does everyone agree that I am better off taking the lump sum?  Am I right in calculating that it would take 34 years to make up for not taking it?  Many thanks.

Good question!

Notepad_Phil said:

Your 34 year calculation (assuming you really want to ignore the spouse pension) ignores inflation - so depending on how good your pension's inflation proofing is, what inflation actually comes and what you would do with the £27k means that the 34 years could be quite a bit less than that in practise.

In your shoes I'd ignore the lump sum unless you have a really good reason to take it or were happy to invest the lump sum in a globally diverse fund and could live with the ups and downs that investments bring.

As well as inflation, need to consider tax. The PCLS is tax freewhereas the £800 or so pension may have tax deducted - if not now then certainly from state pension age making the payback period over 40 years (less if inflation is high).

Albermarle

EP456 said:

Me again!  13 weeks until retirement - I requested a quote from a deferred DB pension asking how much more annual pension I would get if I gave up the minimum lump sum of just over £27k. The answer is £794 pa for myself only or £748.63 and an additional £374.32 pa for spouse  pension should I die.  Does everyone agree that I am better off taking the lump sum?  Am I right in calculating that it would take 34 years to make up for not taking it?  Many thanks.

Normally with private DB pensions , the calculation is a bit 50:50 , but in your case the lump sum seems more attractive than average.
Normally the spouse pension is unaffected by whether you take the lump sum or not , so they should still get the same % of the full pension regardless.
However each DB scheme as its own rules .

Croeso69

Albermarle said:

EP456 said:

Me again!  13 weeks until retirement - I requested a quote from a deferred DB pension asking how much more annual pension I would get if I gave up the minimum lump sum of just over £27k. The answer is £794 pa for myself only or £748.63 and an additional £374.32 pa for spouse  pension should I die.  Does everyone agree that I am better off taking the lump sum?  Am I right in calculating that it would take 34 years to make up for not taking it?  Many thanks.

Normally with private DB pensions , the calculation is a bit 50:50 , but in your case the lump sum seems more attractive than average.
Normally the spouse pension is unaffected by whether you take the lump sum or not , so they should still get the same % of the full pension regardless.
However each DB scheme as its own rules .

He has asked for a quote for giving up his lump sum (as opposed to increasing it) hence the SL or JL quotes supplied.

EP456

She!  What is SL & JL?  Thanks for all replies