Pension Planning for 60

IAMIAM

I have seriously decided to plan stopping work completely at 60 the latest (58 if I can). It's only around 20 years away.

I currently have;
LISA S&S, if I pay the maximum in I should have around 100-150k minimum at age 60.
Old DB Pension Scheme, currently guaranteed payout of £5k per annum from age 65 with a current CETV value of £175k (Was valued at 90k 5 years ago)
Civil Service Pension, of around 30-35k per annum from age 65. I have 3 year buyout and also paying to get around £4k APB on top of that (but from age 68 only for this part)

Is it right to think I can transfer CETV to drawdown via a SIPP transfer in at age 58, I will probably just take the maximum tax free allowance per year until it's gone.
Then age 60 have access to cash in LISA and then Civil Service kicks in at age 65 (I will take the full lump sum) and then 68 state pension kicks in, unless I have died by then?!

Question, at what point will CETV peak? 55? 50? Will it start dropping in value the closer I get to 65 or 58?
Is it right to think the above strategy will enable me to get as much as I can tax efficiently between 58 and 65?
How can I do phased retirement to get my civil pension at 65 and keep the APB until age 68, otherwise there is an actuarial reduction of 3 years for the APB if I have to take it all at 65? Mortgage will be negligible by 60.

draiggoch

Is the Civil Service pension £30-35K based on you finishing work at 58 or 65?
There are all sorts of threads about the difficulties of transferring old DB pensions but with you also having a decent civil service DB pension it may be possible. It may also be that it gets even more difficult to transfer old DB pensions over the next 10-15 years.
Might be an idea to start another pension such as a SIPP just to cover 57-60 in case you cannot transfer the old DB pension.
Good luck

IAMIAM

draiggoch said:

Is the Civil Service pension £30-35K based on you finishing work at 58 or 65?
There are all sorts of threads about the difficulties of transferring old DB pensions but with you also having a decent civil service DB pension it may be possible. It may also be that it gets even more difficult to transfer old DB pensions over the next 10-15 years.
Might be an idea to start another pension such as a SIPP just to cover 57-60 in case you cannot transfer the old DB pension.
Good luck

Based on my finishing at 58 (claiming at 65)
Why is there difficulties? Is it not allowed or being restricted even more???

hugheskevi

IAMIAM said:

LISA S&S, if I pay the maximum in I should have around 100-150k minimum at age 60.

Is that based on stopping contributions at age 50, when bonus ceases?

and then Civil Service kicks in at age 65 (I will take the full lump sum)

Is there a reason for this? The 12:1 lump sum commutation rate is terrible, if you want a lump sum then arranging it through Defined Contribution pension would be much more efficient.

Question, at what point will CETV peak? 55? 50? Will it start dropping in value the closer I get to 65 or 58?

Impossible to tell, as it depends on bond yields. In theory, it peaks as you reach Normal Pension age, assuming bond yields don't change. However, any change in bond yields will affect that.

Is it right to think the above strategy will enable me to get as much as I can tax efficiently between 58 and 65?

Taking max tax free cash from Civil Service pension is tax efficient, but financially inefficient. It is rather like exchange bureaus advertising commission-free foreign exchange, but then having terrible rates so although you don't pay commission you nonetheless get a very poor deal.

You don't discuss what your target income is - if target income is below what you will have, it may well not be efficient to go for maximum tax efficiency. If your target is to leave an inheritance, other vehicles may be better.

How can I do phased retirement to get my civil pension at 65 and keep the APB until age 68, otherwise there is an actuarial reduction of 3 years for the APB if I have to take it all at 65?

You could buy out the actuarial reduction when you claim the pension, but if you are not working you wouldn't get much tax relief on the contribution due to having low relevant earnings for tax relief eligibility.

You could wait until age 68 and the part of your pension with Normal Pension age 65 would be actuarially enhanced.

You are probably placing undue weight on Normal Pension age and actuarial reduction. Normal Pension age is just the age at which benefits are paid with neither actuarial reduction nor enhancement. It may well be financially efficient to take the benefits either before or after Normal Pension age.

Albermarle

IAMIAM said:

draiggoch said:

Is the Civil Service pension £30-35K based on you finishing work at 58 or 65?
There are all sorts of threads about the difficulties of transferring old DB pensions but with you also having a decent civil service DB pension it may be possible. It may also be that it gets even more difficult to transfer old DB pensions over the next 10-15 years.
Might be an idea to start another pension such as a SIPP just to cover 57-60 in case you cannot transfer the old DB pension.
Good luck

Based on my finishing at 58 (claiming at 65)
Why is there difficulties? Is it not allowed or being restricted even more???

It is  regular subject on the forum . Probably easiest to go to the search box at the top of the page and search for ' DB transfer '
Here is a post I did earlier ( copied and pasted )

If you want to transfer a DB pension over £30K , then you have to go through a very detailed and expensive process with an IFA. They will then say whether the transfer is recommended or not.
The FCA has clamped down on DB transfers, due to a lot of problems in the past with NHS, British Steel staff being transferred out of perfectly good DB pensions into dodgy DC ones . 
Partly due to this , IFA's and particularly their indemnity insures, are nervous about DB transfers and will only give a positive recommendation where the case is obvious . The nervousness is around potential large claims for compensation some years down the line when the client has blown all the money  or been scammed and now wants their DB pension back .
If you go through the process and get a negative recommendation , you can legally still transfer as a so called 'insistent client'.
The problem is that due to the pressure and the potential for large claims, no mainstream DC pension provider will accept the transfer , or even non mainstream . So you would be stuck and with a large hole in your wallet.
The subject has been debated at length on this forum many times . If you have some spare time you could read this thread which has been running on and off for a couple of years .Who will accept a DB to SIPP transfer from "insistent client" — MoneySavingExpert Forum
It could be you would get a positive recommendation, but it would still cost about £4K . Most IFA's have not got the right qualifications and/or are shying away from this area . So will take some searching to find one .