LTA and Pension Pot Meaning

Chloe_G

I just got my annual pension statement which gives my Lifetime Allowance Used - is this figure the same as my 'pension pot'?  (I only have one pension.)
Many thanks.

eskbanker

'Pension pot' is typically used to refer to the value of your defined contribution pension fund(s), but 'LTA used' will signify what's already been taken out of that, or at least crystallised (expressed as a percentage of the £1.073m lifetime allowance).  What have you done so far, in terms of accessing your pension?

Chloe_G

Hi eskbanker, I've done nothing yet as I've got a good few years to go.  I'm in the Local Government Pension Scheme and they never quote your pension pot but I notice this year they have told me my LTA used.  Apparently you can ask them once a year to tell you the pension pot which I would like to find out so I can do those online pension calculators.  I've asked but I think I might reach retirement age by the time they get round to answering me!!  

Dazed_and_C0nfused

You don't have a pension pot.

You have a guarantee that LGPS will pay you £x from retirement age for the rest of your life.  With an element of inflation included and probably a spouse/survivor pension as well.

If you wanted this pension earlier that the normal retirement age (for LGPS) you probably have the option of taking the pension a few years earlier and in return, as the pension will be paid for more years than expected, you will get slight less each year.

MX5huggy

Are you sure it’s LTA figure they have given you? Mine has added an Annual Allowance figure to the statement this year for the first time it’s big (about 45% of gross), and due to a complicated situation around having a temporary job that’s started and ended within the tax year my estimated pension at retirement is wrong but the input amount is right ie multiply it by 49 = gross pay over the year. 

Most of the online pension calculators are irrelevant to the LGPS scheme. Except where they say add expected DB income.