LGPS with AVCs - maximum lump sum

Pipkin1812

AlanP_2 said:

Are the LGPS "annuity" rates published somewhere? 

Would be interested to see them.

I would be interested in this too. 

OldBeanz

Pipkin1812 said:

AlanP_2 said:

Are the LGPS "annuity" rates published somewhere? 

Would be interested to see them.

I would be interested in this too. 

In previous similar threads, the equation has been declared too complex to explain, just good value.
My wife will overshoot hherbal free cash allowance but we consider that better than going under. She will retire at 61 rather than 67.

Silvertabby

The AVC conversion calculation isn't just a question of reading off the appropriate factor - it's way more complicated than that, and pulls in other data from the individual record.

Your LGPS should be able to run an AVC conversion calculation for you once you are within 12 months of your date of retirement (or within 12 months of the date you say you want to retire - but I didn't say that).

Knowhere

Silvertabby said:

The AVC conversion calculation isn't just a question of reading off the appropriate factor - it's way more complicated than that, and pulls in other data from the individual record.

Your LGPS should be able to run an AVC conversion calculation for you once you are within 12 months of your date of retirement (or within 12 months of the date you say you want to retire - but I didn't say that).

Thanks Silvertabby, it seems very tricky to get to know anything about it then. As I’m over 2 years away from reaching 55 and the earliest I would be able to take it, my LGPS wouldn’t be able to provide a calculation,  so I would have to leave it until much closer until requesting a calculation and hope that it becomes clear it was worth the effort in loading up the AVC as much as possible!

Knowhere

Silvertabby said:

How old are you?  If you are nearer NRA than 55, then the LGPS added pension AVC annuity purchase factors are particularly good.  

I suppose the question I could ask based on the above, if in any way you are able to answer, is that if one did have a large enough AVC to have a surplus available after the tax free cash element to look into purchasing an annuity as described, would it still be an attractive proposition at 55 (although not as much as at or near NRA)?

Silvertabby

Knowhere said:

Silvertabby said:

How old are you?  If you are nearer NRA than 55, then the LGPS added pension AVC annuity purchase factors are particularly good.  

I suppose the question I could ask based on the above, if in any way you are able to answer, is that if one did have a large enough AVC to have a surplus available after the tax free cash element to look into purchasing an annuity as described, would it still be an attractive proposition at 55 (although not as much as at or near NRA)?

The factors are age related, hence my comment that you would get a bigger return at NRA than 55.  The quotes I've seen in the past (mostly 60 plus) were way more than the quotes offered as an open market annuity.  The fact that the LGPS annuity is uncapped index linked isn't to be sniffed at, either.