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Defer LGPS Pension

Maria2512
Posts: 59 Forumite


Hi all,
Not sure why but Pension scenarios keep me up at night. Just when I think I’ve cracked it another scenario appears in my mind!
If I’ve been in the LGPS for 25 years and want to retire at 60, can I defer taking my pension for a couple of years until I’m say 62? If so, will the reductions be less because my NPA will be nearer when I take my pension at 62?
Not sure why but Pension scenarios keep me up at night. Just when I think I’ve cracked it another scenario appears in my mind!
If I’ve been in the LGPS for 25 years and want to retire at 60, can I defer taking my pension for a couple of years until I’m say 62? If so, will the reductions be less because my NPA will be nearer when I take my pension at 62?
Would it have any impact on when I can take my AVC’s?
If I can tide myself over for a couple of years would it be worth considering or is it too much aggravation for nowt much?
Thoughts?
Thoughts?
I’m planning for every eventuality!!
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Comments
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The Pension can be taken anytime between 55 and 75.
Ignoring inflation and assuming you are still contributing to it, it will be worth more at age 62 than at age 60 as you will have two extra years worth of "stamps", as it were.
If you aren't contributing anymore, you can defer it and gain a small percentage per year for doing so, I can't find the table at the moment though. Also not sure if there is a minimum age, it may be the state pension age. Someone else will know.
Edit - found it, minimum age to defer and get the extra is the state pension age, so not applicable to you at the age of 62...
https://lgps.buckinghamshire.gov.uk/currently-payingin/thinking-about-retirement/late-retirement/#:~:text=Your LGPS pension is payable,known as a late retirement
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Completely unqualified comment here. Why not just take the pension when it comes due? None of us know what lies around the next bend.0
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Maria2512 said:43722 said:Completely unqualified comment here. Why not just take the pension when it comes due? None of us know what lies around the next bend.
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la531983 said:Maria2512 said:43722 said:Completely unqualified comment here. Why not just take the pension when it comes due? None of us know what lies around the next bend.0
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Maria2512 said:la531983 said:Maria2512 said:43722 said:Completely unqualified comment here. Why not just take the pension when it comes due? None of us know what lies around the next bend.
https://www.lgpsmember.org/your-pension/planning/taking-your-pension/#early-retirement-reductions
So I suppose in a roundabout way there is a benefit in waiting 2 years, obviously you aren't getting 2 years worth of payments though so that's a factor.0 -
With 25 years of LGPS, are you subject to any of the protections that would give you an unreduced pension at 60? Rule of 85 I believe?0
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Maria2512 said:If I’ve been in the LGPS for 25 years and want to retire at 60, can I defer taking my pension for a couple of years until I’m say 62? If so, will the reductions be less because my NPA will be nearer when I take my pension at 62?
The sweet spot would probably be getting a flexible retirement from your employer, drawing your pre-2008 pension at 60 and leaving the rest while continuing to work at a lower grade or fewer hours than before.0 -
hyubh said:Maria2512 said:If I’ve been in the LGPS for 25 years and want to retire at 60, can I defer taking my pension for a couple of years until I’m say 62? If so, will the reductions be less because my NPA will be nearer when I take my pension at 62?
The sweet spot would probably be getting a flexible retirement from your employer, drawing your pre-2008 pension at 60 and leaving the rest while continuing to work at a lower grade or fewer hours than before.0
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