Lgps benefit from £155 k transfer in from personal pension

pjread

That seems really generous, I don't suppose there's any kind of estimate calculator floating around?

NottinghamKnight

pjread said:

That seems really generous, I don't suppose there's any kind of estimate calculator floating around?

Definitely sounds wrong, maybe poster has wrong end of stick.

Silvertabby

See my comments on page 1.  
However, looks like transfer factors have just changed, or are about to change.  I can't see them being even more generous, so expect that this boat has now sailed.

mattysgsg

According to the letter I got today, £160k gives £12,987. Case closed I think. Age 50, just, payable at state retirement age. Now I have an answer anyway. I was expecting circa £13/14k and that's near enough. Thought I'd update the forum anyway. Just incase that's helpful to anyone in a similar situation.

mattysgsg

J76W said:

Hi, if it helps I transferred in approx £172k earlier this year, this increased my pension by £14,600 per year. I am a 46 year old male. Based on my figures I would estimate your CETV and age would buy you just under £13k. 

Yep. That's in line with what I got back today. For my situation it's a no brainer. Your figures are pretty much bang on I think

garmeg

mattysgsg said:

According to the letter I got today, £160k gives £12,987. Case closed I think. Age 50, just, payable at state retirement age. Now I have an answer anyway. I was expecting circa £13/14k and that's near enough. Thought I'd update the forum anyway. Just incase that's helpful to anyone in a similar situation.

Yes, i would go for that. A nice guaranteed income when added to the state pension.

I wonder how much CETV they would offer you if you wanted to transfer a pension of that amount.

JoeCrystal

garmeg said:

mattysgsg said:

According to the letter I got today, £160k gives £12,987. Case closed I think. Age 50, just, payable at state retirement age. Now I have an answer anyway. I was expecting circa £13/14k and that's near enough. Thought I'd update the forum anyway. Just incase that's helpful to anyone in a similar situation.

Yes, i would go for that. A nice guaranteed income when added to the state pension.

I wonder how much CETV they would offer you if you wanted to transfer a pension of that amount.

Not as generous as it turns out. I believe that the factors they used are more generous transfer in compared to transfers out of LGPS.

Silvertabby

garmeg said:

mattysgsg said:

According to the letter I got today, £160k gives £12,987. Case closed I think. Age 50, just, payable at state retirement age. Now I have an answer anyway. I was expecting circa £13/14k and that's near enough. Thought I'd update the forum anyway. Just incase that's helpful to anyone in a similar situation.

Yes, i would go for that. A nice guaranteed income when added to the state pension.

I wonder how much CETV they would offer you if you wanted to transfer a pension of that amount.

Unlike the transfer in factors used in these examples, the transfer out factors used by the LGPS are notoriously poor.  Less than 20 x the annual pension given up wouldn't raise my eyebrows - yet people still do it.

Albermarle

mattysgsg said:

According to the letter I got today, £160k gives £12,987. Case closed I think. Age 50, just, payable at state retirement age. Now I have an answer anyway. I was expecting circa £13/14k and that's near enough. Thought I'd update the forum anyway. Just incase that's helpful to anyone in a similar situation.

I suppose you should take into account that if the £160K was not transferred in and continued to be invested , you coukd expect it grow maybe 3% above inflation on average fir the next 17 years . Assuming the £12,887 pa will also increase with inflation then the £160K would see growth of 3% over 17 years , compounded . so would be something above £250K and this is what you are effectively giving up. Still looks a good deal but not quite as good .