LGPS Early retirement reductions

Maria2512

Hi,

For those interested, I was reading that the government have reduced the LGPS.pension percentages for taking your pension early. 

I’m not sure how significant that is financially speaking, but every little helps I suppose!

I may retire 3 days earlier than originally planned. 

Thanks

sevenhills

Maria2512 said:

Hi,

For those interested, I was reading that the government have reduced the LGPS.pension percentages for taking your pension early. 

I’m not sure how significant that is financially speaking, but every little helps I suppose!

I haven't seen anything in the news. Is this new information?

https://www.lgpsmember.org/your-pension/planning/taking-your-pension/

Maria2512

Yes, it took effect from 3rd July 2023

jsinc

https://forums.moneysavingexpert.com/discussion/6446697/change-to-cost-of-voluntary-pension-benefits-and-early-retirement-in-public-sector/p1

daz378

Thanks.. if I go at 60 I'd assumed  28%...27.4% from table...might be tempted 1 more  year 61 drops under 25%....quick question on the pension calculator...you can input possible wage % rate increase...going forward..does anyone do this?...

Plasticman

daz378 said:

Thanks.. if I go at 60 I'd assumed  28%...27.4% from table...might be tempted 1 more  year 61 drops under 25%....quick question on the pension calculator...you can input possible wage % rate increase...going forward..does anyone do this?...

I don't - feels safer to assume none! 

collins74

I assume 1% pay increases which I think is safe.  My LGPS calculator only applies this to the CARF element of my service and i need to manually adjust the final salary part which I tend to put in a few thousand less than the projected salary.  

I assume these early retirement factors could change again too.

michaels

sevenhills said:

Maria2512 said:

Hi,

For those interested, I was reading that the government have reduced the LGPS.pension percentages for taking your pension early. 

I’m not sure how significant that is financially speaking, but every little helps I suppose!

I haven't seen anything in the news. Is this new information?

https://www.lgpsmember.org/your-pension/planning/taking-your-pension/

Does anyone happen to have the old commutation rates for comparison?

saucer

From my spreadsheet I have some of the previous penalties 

1, ?       

2, 9.9

3, ?       

4, 18.4

5, 22.2

6, 25.7

7, 29

michaels

saucer said:

From my spreadsheet I have some of the previous penalties 

1, ?       

2, 9.9

3, ?       

4, 18.4

5, 22.2

6, 25.7

7, 29

Assuming the civil service ones are the same this is worth about £640pa for the rest of our lives to me and DW

m_c_s

These are quite substantial drops in reductions (1.6% difference at 7 yrs). These are calculated by the Government Actuary's Department so similar changes should be seen with Civil Service pensions like alpha.