LGPS AVC

Pipkin1812

Thank you everyone for your comments. It confirms that it will pay to speak to a pension specialist going forward. Does anyone know how I find one that might specialise in LGPS? 

saucer

Pipkin1812 said:

Thank you everyone for your comments. It confirms that it will pay to speak to a pension specialist going forward. Does anyone know how I find one that might specialise in LGPS? 

If independent advice on the overall LGPS from someone who properly understands it is anything like finding it for the NHS scheme, I’d say you will struggle. At least in my experience it is much easier to find IFAs who understand and advise on private pensions. I pieced together what I know from all the official documentation and from people’s knowledge and experience here. 
Having said that one likely area of research or advice you might seek out is regarding the specific investment choices you might have if you are topping up your AVC. Depending on which employer you are with the options will be somewhat different. E.g. The Prudential offer this for most (all?) of the LGPS schemes.  Have a look here https://www.pru.co.uk/rz/localgov/
There is plenty of fairly ‘easy to understand’ info on specific funds and charges there, but you might be able to get further IFA advice elsewhere on the investment options. 

Pipkin1812

Many thanks. Trying to get information from my Pensions Section is nigh on impossible. They seem only willing to give details once you’ve decided to retire which is next to useless when trying to plan for the future and looking at options to make sure you take the right route towards actual retirement.  

Silvertabby

Pipkin1812 said:

Many thanks. Trying to get information from my Pensions Section is nigh on impossible. They seem only willing to give details once you’ve decided to retire which is next to useless when trying to plan for the future and looking at options to make sure you take the right route towards actual retirement.  

That's because LGPS administrators are not advisers.  During my time, some fund members would get quite tetchy when we wouldn't 'advise them what to do for the best return', but as we weren't qualified/licensed advisors it would have been illegal for us to do that. And impossible, as qualified advisors take everything into account, not just one pension scheme.

As saucer says, finding an IFA who specialises in public sector pensions will take some doing.  One possible way of addressing this would be to try to make some of your decisions now.  ie, if your priority is maximising your tax free lump sum or your pension.  Once you have decided that, your IFA would have the basics to work with, and then could look at your AVC and other options as part of your overall retirement plan.

AlanP_2

Pipkin1812 said:

Thank you everyone for your comments. It confirms that it will pay to speak to a pension specialist going forward. Does anyone know how I find one that might specialise in LGPS? 

What would you want them to specifically advise on? Up the thread you reached the conclusion that you would increase your AVC contributions to boost your tax free lump sum.

Would it be the specific AVC fund choices you wanted advice on?

Would you prefer them to be different to the choices currently in place?

If we undersood the "ask" we might be able to help.

Pipkin1812

No. I have a standard life AVC salary sacrificed and am not looking to change that. It’s about cost of reductions of retiring early at say 60. I have 3 elements too my pension which I have paid into since 1983, the majority is 1/80ths, some 1/60ths and now CARE. I have also worked part time for last 20 years so my pension is complicated and with the R85 on a good portion of it working out figures myself is difficult. These figures are necessary to make educated decisions on exactly when i can retire. I hope to have a balance between a reasonable pension and lump sum. 

OldBeanz

Pipkin1812 said:

No. I have a standard life AVC salary sacrificed and am not looking to change that. It’s about cost of reductions of retiring early at say 60. I have 3 elements too my pension which I have paid into since 1983, the majority is 1/80ths, some 1/60ths and now CARE. I have also worked part time for last 20 years so my pension is complicated and with the R85 on a good portion of it working out figures myself is difficult. These figures are necessary to make educated decisions on exactly when i can retire. I hope to have a balance between a reasonable pension and lump sum. 

There is an online LGPS retirement calculator
https://lgssmember.pensiondetails.co.uk/home/members/lgps/index.html
You can input various scenarios for retiral.

Dansmam

Pipkin 1812, for lgps there's often a union rep who understands the ins and outs including rule of 85. Not an adviser but knowledgeable and specialist.

Pipkin1812

Thanks for the helpful suggestions. 

Pipkin1812

Hi. Maybe obvious and possibly daft question but does anyone know if the lump sum built up before 31 March 2008 is also protected from reduction by R85 if retiring at 60? Thanks