AVC into LGPS

Albermarle

Wentthedaywell? said:

Silvertabby said:

The factors are age related, so not possible to give you any meaningful figures.

However, I can say that the (current) LGPS/AVC  annuity factors are very generous in relation to what the open market would offer.

Hi Silver Tabby, I think I may have been the poster the OP referred to. The calculator says I would get £100 pension per £1760 given up. Is this considered a good ratio?

(OP have you looked on the the LGPS to calculate what you'd get in your own situation?)

Yes , as mentioned by a previous poster the offer is more than  double what you can buy in the open market.
In other words a lifetime annuity with similar conditions for £100 pa would cost over £4000.
Seems ridiculous but the RPI/CPI linking is what pushes the cost up. 

Silvertabby

Albermarle said:

Wentthedaywell? said:

Silvertabby said:

The factors are age related, so not possible to give you any meaningful figures.

However, I can say that the (current) LGPS/AVC  annuity factors are very generous in relation to what the open market would offer.

Hi Silver Tabby, I think I may have been the poster the OP referred to. The calculator says I would get £100 pension per £1760 given up. Is this considered a good ratio?

(OP have you looked on the the LGPS to calculate what you'd get in your own situation?)

Yes , as mentioned by a previous poster the offer is more than  double what you can buy in the open market.
In other words a lifetime annuity with similar conditions for £100 pa would cost over £4000.
Seems ridiculous but the RPI/CPI linking is what pushes the cost up. 

Really depends on your age but, as Albermarle says, you'll get more from the LGPS than you would on the open market.

Just in case anyone is wondering, the AVC to LGPS factors are increased in the case of ill health retirement.  Not by much, admittedly, but something else to work into the calculations if applicable.