Deferring LGPS beyond retirement age?

flatcoat

I have an LGPS pension which I stopped contributing to when I left my job a year ago and just a few months before I turned 66. I have no plan to retire until I am at least 70. How much will my pension increase each year by not taking it? Is it better to take it and invest the income in another private pension for 3-4 years? 

la531983

https://www.lgpsmember.org/faqs/how-are-pension-increases-calculated/

Inflationary increases only, nothing else.

TBH I dont see any benefit in defering a LGPS (or any other DB) pension if you are no longer contributing to it and dont plan to contribute in the future.

flatcoat

In that case I might as well take the money now and invest in another pension? 

Pat38493

flatcoat said:

In that case I might as well take the money now and invest in another pension? 

If you take a PCLS and you are going to put the entire amount back into another pension, make sure you have your ducks in a row with regard to pension recycling rules.  There is nothing to stop you putting the DB annual payments into your pension but you are only supposed to recycle tax free cash within certain limits (although it's not clear if HMRC actually ever enforces this).

Lemon_dr1zzle

You will receive a small late retirement factor applies to your benefits in addition to the inflationary increases 

la531983

Lemon_dr1zzle said:

You will receive a small late retirement factor applies to your benefits in addition to the inflationary increases 

Doesn't really seem worth it given the percentages quoted

https://lgps.buckinghamshire.gov.uk/currently-payingin/thinking-about-retirement/late-retirement/#:~:text=Your LGPS pension is payable,known as a late retirement.

flatcoat

On the face of it I agree. The example shown gives a 20% increase for a 5 year deferral which initially sounds good. However the annual CPI increases will probably cumulatively exceed that. Unless I misunderstand it appears I am better taking the money now and investing the income in some form, pension or otherwise. 

hyubh

la531983 said:

https://www.lgpsmember.org/faqs/how-are-pension-increases-calculated/

Inflationary increases only, nothing else.

That's false. A late retirement factor will apply.

Lemon_dr1zzle said:

You will receive a small late retirement factor applies to your benefits in addition to the inflationary increases 

Make yer mind up