Timing taking a deferred LGPS pension including mandatory lump sum. 9 March at 6:35PM in Pensions, annuities & retirement planning 4 replies 242 views

marycanary

I have a deferred pension in the LGPS that includes a mandatory lump sum. I want to start taking my pension soon and I think I read that it was best to wait until after the commencement of the new tax year. This is to allow for the inflationary increase in the lump sum to be applied.

Is that correct and, if it is, what is the first date in April I can take the pension to benefit from the inflationary uplift? 

Thanks in advance.

Silvertabby

Yes.  This year the cost of living increase will be applied on 10 April (being the first Monday on or after 6 April) so any time after then will do the trick.

sgx2000

Ii had a defered LGPS Pension
I reached 60 during the start of lockdown.
I recieved a letter saying that i had the appropriate number of years. 
I was told i could not increase the amount by delaying taking it.
I had 3 choices
Low lump and higher monthly
Mid lump and mid monthly
Higher lump and smaller monthly

There was nobody at the pension fund to advise...

I took the mid deal.....

Hindsight is agreat thing.
Given the choice today i would have chosen the higher monthly payment and small lump...

There is a lot to be said for a monthly amount that will always match inflation.......

Silvertabby

sgx2000 said:

Ii had a defered LGPS Pension
I reached 60 during the start of lockdown.
I recieved a letter saying that i had the appropriate number of years. 
I was told i could not increase the amount by delaying taking it.
I had 3 choices
Low lump and higher monthly
Mid lump and mid monthly
Higher lump and smaller monthly

There was nobody at the pension fund to advise...

I took the mid deal.....

Hindsight is agreat thing.
Given the choice today i would have chosen the higher monthly payment and small lump...

There is a lot to be said for a monthly amount that will always match inflation.......

It's true that your deferred pension wouldn't have been actuarily increased before NRA, being 65, but OP is asking about the cost of living increase and her automatic lump sum.

She doesn't say if she is considering increasing her tax free lump sum by commutation, but your comments in that respect are still valid.  The public sector of 1:12 is pretty poor.

marycanary

Silvertabby said:

Yes.  This year the cost of living increase will be applied on 10 April (being the first Monday on or after 6 April) so any time after then will do the trick.

 Thank you @Silvertabby, this is just what I need to know. 

BTW I will not commute any of the pension to obtain a larger lump sum. I will take the mandatory minimum amount.