how good is LGPS? should I go for a private pension instead?

betterfuturejc

thank you for knocking some sense and knowledge into me. I will keep my LGPS and maybe have another LISA or something along 

jamesd

Best is LGPS and a personal pension. You retire early and draw on the personal pension so you don't have to take the actuarial reduction for retiring before it's normal pension age.

chiefie

ErinGoBrath said:

Mon Dieu! 

Sacre bleu aussi 

jamjar92

jamesd said:

Best is LGPS and  a personal pension. You retire early and draw on the personal pension so you don't have to take the actuarial reduction for retiring before it's normal pension age.

Depends on your circumstances, I am going to retire at 60, 7 years early using the r85 rule, so only post 2008 will be reduced.

Using the figures on my schemes website calculator I think I will be 101 years old before I loose out. I have only the LGPS (since 18) and AVC as an additional lump sum. The standard lump sum will be like have the state pension 7 years early, and the AVC lump will pay the balance of the mortgage off now, so anything I add now will be a bonus.

I started the LGPS with a view to moving on and never did, and it had nothing to do with the pension. At 18, I got asked when started do I want to join the pension scheme, i said "is it a good idea?", the reply was "yes" and I signed up.

marycanary

jamjar92 said:

jamesd said:

Best is LGPS and  a personal pension. You retire early and draw on the personal pension so you don't have to take the actuarial reduction for retiring before it's normal pension age.

I started the LGPS with a view to moving on and never did, and it had nothing to do with the pension. At 18, I got asked when started do I want to join the pension scheme, i said "is it a good idea?", the reply was "yes" and I signed up.

I joined LG in the 1980s at a similar ago to jamjar92. I remember being told I had to join the LGPS. It's a very good thing for me that I could not say no as I was so stupid with money at that age I would have probably declined if given the option.

Wentthedaywell?

What is confusing to many people new to pensions betterfuturejc is that the amount you have accrued in any year -1/49 - will be paid back to you not as a one off payment, but for every year of your retirement. That could be 30 odd years, so a very good deal!

jamesd

jamjar92 said:

Depends on your circumstances, I am going to retire at 60, 7 years early using the r85 rule, so only post 2008 will be reduced.

True, R85 is a particularly interesting wrinkle. And some may have enough money to retire when they want and be better off with AVCs as tax free lump sum.

hyubh

marycanary said:

jamjar92 said:

I started the LGPS with a view to moving on and never did, and it had nothing to do with the pension. At 18, I got asked when started do I want to join the pension scheme, i said "is it a good idea?", the reply was "yes" and I signed up.

I joined LG in the 1980s at a similar ago to jamjar92. I remember being told I had to join the LGPS. It's a very good thing for me that I could not say no as I was so stupid with money at that age I would have probably declined if given the option.

A complete aside, but occupational pensions, when offered, were typically compulsory, and that applied to the LGPS (or LGSS as then was) too. This was changed in 1988, when a statutory right to opt out came in under general pensions legislation.