To draw or not to draw

Siwan_Roberts

Retiring in Sep aged 61, Local Government Pension Scheme but starting another job, different pension scheme. Do I draw my LGPS pension now or wait until next Apr when the CPI adjustment uplift is applied?  Pension not needed to live on but would make living that little bit easier. 

AlanP_2

Re-reading your post you aren't actually retiring in September you are changing jobs, you don't have to take the pension.

If you don't need it why take a reduced pension instead of waiting? I understand that it would make living today easier but it is taking away from what you will have throughout what will hopefully be a long and enjoyable retirement.

Do you have any Rule of 85 protection for pre-2008 service as that would mean pension accrues under the 2008 scheme would be unreduced.

In April you will get the relevant proportion of the uplift based on time since you left LGPS. You can't leave on March 31st for example and get a years worth of CPI adjustment in April. So, work out number of months since you left up until April 23 and calculate how much the increase might be worth based on say 10% CPI (September 22 figure will be used).

tacpot12

The only reaosn to take the pension now would be if you needed the lump sum desperately, e.g. your house was about  to be repossed. I would try to eak out your income from your new job, and not draw on the LGPS pension unless you stop working altogether, or you reach the normal retirement age for the scheme. 

Siwan_Roberts

AlanP_2 said:

Re-reading your post you aren't actually retiring in September you are changing jobs, you don't have to take the pension.

If you don't need it why take a reduced pension instead of waiting? I understand that it would make living today easier but it is taking away from what you will have throughout what will hopefully be a long and enjoyable retirement.

Do you have any Rule of 85 protection for pre-2008 service as that would mean pension accrues under the 2008 scheme would be unreduced.

In April you will get the relevant proportion of the uplift based on time since you left LGPS. You can't leave on March 31st for example and get a years worth of CPI adjustment in April. So, work out number of months since you left up until April 23 and calculate how much the increase might be worth based on say 10% CPI (September 22 figure will be used).

Yep, sorry, had to use the retiring word for clarification but yes you’re right, leaving one job that gives me the option of drawing my pension now or at another point in the future.