Voluntary redundancy from LGPS (Scotland) at age 54

billm

Agree that would be the ideal and what we hope for.
Unfortunately, based on conversations in the office, already massively oversubscribed, so unlikely to still be on offer next year.
Still, she can but wait and see.
Thanks all.

RetSol

 I don't know  the complexities of the LGPS (Scotland) scheme so I can't comment from that point of view.  However, at the age of 55, I took an actuarially reduced deferred pension from the UK civil service Classic scheme in April '20, having taken VES in 2010.  I have no regrets.  My question is: what does your wife want to do?  What are the options?  What will her severance payment be?  What will her (actuarially reduced ) pension be?  What are your joint income and outgoings?   What is your joint current income?  Can you reduce your outgoings, to meet your joint income,  if your wife work ceases to work?  Qhat state pension do you and your wife have in prospect?  And when?  What are your state pension forecasts (yours and hers)?  I know from experience that, if you are offered early severance, you don't get much time in which to consider these questions.  We are lacking a lot of information here.  I am concerned that your wife may lose an opportunity here for la ack of concrete consideration of the available options (albeit that you may jointly have less in the way of joint income at the end of the day)..  It may be worth it though...does she enjoy her job and want to carry on past 60?

Would love to see a post from her!

billm

Plan was always for her to retire at age 60/61, and we have a comprehensive plan in place from then onwards.
Opportunity presented itself for her to go early and she would be mad not to jump at the chance.
If was able to go with no reduction via redundancy, would be approx £250 - 300 per month less than current take home pay. Could then pick up a small job to make up the difference.
If goes at 55 with full actuarial reduction would be approx 4k less so 6 -7k less than current wage(less after tax/no), but of course paid for longer.
If she was to post, she would say that she would happily leave tomorrow if she could, as would half her department (which is why they all jumped at the chance).
No matter, it was a thought nothing more. Only a few years to go, and who knows maybe another chance in the future.
Yes she could look elsewhere for another job, but realistically you don't get better paid/conditions than a LA job when working part time, so even though doesn't enjoy it, she is willing to hold on for another few years.

Silvertabby

billm said:

Plan was always for her to retire at age 60/61, and we have a comprehensive plan in place from then onwards.
Opportunity presented itself for her to go early and she would be mad not to jump at the chance.
If was able to go with no reduction via redundancy, would be approx £250 - 300 per month less than current take home pay. Could then pick up a small job to make up the difference.
If goes at 55 with full actuarial reduction would be approx 4k less so 6 -7k less than current wage(less after tax/no), but of course paid for longer.
If she was to post, she would say that she would happily leave tomorrow if she could, as would half her department (which is why they all jumped at the chance).
No matter, it was a thought nothing more. Only a few years to go, and who knows maybe another chance in the future.
Yes she could look elsewhere for another job, but realistically you don't get better paid/conditions than a LA job when working part time, so even though doesn't enjoy it, she is willing to hold on for another few years.

This isn't they way to do it, but to get just a feel of the employer's strain costs take the difference between the unreduced and reduced annual pension and X by 20.
In this case, the £4K per year difference means that the employer's costs would be AT LEAST £80K, on top of the actual redundancy payment.