What to do with a deferred (I am no longer a contributing member) LGPS pension

Gimmeaminute

What_time_is_it said:

Dazed_and_C0nfused said:

You won't be able to contribute to LGPS unless a current member of the scheme.

Not sure about AVC's linked to LGPS but I strongly suspect the same applies.

Why do you think taking it at the earliest possible time would be worthwhile considering?

Is giving up say 50% of your £1,250/year worth it to have the reduced pension paid for an extra 12/13 years? 

Thanks. I suspect you are correct on the AVCs. 

Regarding taking it at the earliest possible time, it seems to make financial sense to take it as early as possible. I think it's something like 55-60% if I took it from age 55. Even assuming 50%, it would only start to cost me money from when I am in my '80s. And by that time I would imagine that my outgoings will be lower than when I am in my '50s and 60's. Seems like a decent option to me, but I am open to other opinions on this of course.

I did the numbers on my Local Government pension and came to exactly the same conclusion as you have. I took my pension at 55 last year and still believe that it was the correct decision for me. It gave me a lump sum and access to additional income that I can use to get both my kids through Uni and allow me to go on nice holidays now while I am still fit enough and possibly not something I will do as much into my eighties.

As has been said many times on the forum, unless you desperately need it, don't take the extra capital that will be offered. The 12:1 commutation is very poor value, especially if you take it at 57.

LHW99

Is the conversion from reduced lump sum into income equally poor?