Taking LGPS Pension Early - Timing Question

lovelifer

Hello 
I'm currently not working and receiving ESA. I'm 57 and have a small pension with wypf which I could live on if I supplement it.
However I have been reading posts on here and wondered if it makes sense to leave it until April next year as there's some increase coming? I don't completely understand, and can't find the post on which it was mentioned.

I don't envisage being able to work again in the short term and I'm a bit concerned about the economy and possible negative impact on pensions, I have no great experience in economics however.

Pension wise wont advise on my main pension 

Any thoughts would be much appreciated 

Silvertabby

If your pension includes an automatic lump sum (from pre 2008 service), or if you intend to commute (give up some of your pension for a one-off tax free lump sum),  then it could make sense to defer payment until after 12 April next year as said lump sum would increase by CPI (9%/10%?)

If you only intend to take an annual pension, then it doesn't really matter as your pension in payment will increase by whatever the CPI is.

That said, do you have any R85 protections?  At your age, they would only relate to any pre 2008 benefits, but R85 is still linked to a minimum retirement age of 60 so you may wish to consider leaving payment until then.

lovelifer

Thanks Silvertabby. Will give the fund a ring to clarify those points. And there is a lump sum involved. 

MX5huggy

You don’t need to included the current economic turbulence as a factor in the timing of taking the pension, LGPS members are not going to be effected by this. 

I would be looking at the effect on your ESA claim, and it maybe a better question on the benefits board but there’s no point taking the pension if it’s just going to reduce your ESA claim by the same amount. 

lovelifer

Thanks for the comments. i will wait until April 23 as I don't need it currently (I am using savings to supplement ESA)

Another question if I may, I have a small pension (£13k) with Aegon Retiready, the fees are 0.69% pa. I can't decide if to go for a cheaper fee  retiready  pension account or ditch them and move to Vanguard or similar (I have a Sipp with vanguard already). 
I guess it's a decision I need to make myself, but I'd be interested in other views if there are any.