LGPS transfer

I have a small pension pot (just over the £30K) with my local government pension scheme and want to transfer it to a flexi drawdown scheme. Im not working and over 55. I can not find a IPA to do this, no one wants to know. Has anyone else had the same issues?
Thanks

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  • boingy
    boingy Posts: 1,158
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    You'll rarely win by giving up a defined benefit pension for drawdown or anything else. I'm not surprised no-one will advise you to do it. However, you can insist that it is transferred. The receiving company will want you to sign in blood and swear an oath in triplicate that it's really what you want, because they know you will be almost certainly be worse off in the long run.

    You can start taking the LGPS pension any time over 55. The amount is reduced compared with what you would get at your "proper" pension age but I seem to recall that once you got to about 58 the reduction was not too bad. You can take a 25% lump sum tax free if you want more of the money quicker but run some numbers first because the benefits are much more generous than for the equivalent pot in a personal pension.



  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 12,754
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    I have a small pension pot (just over the £30K) with my local government pension scheme and want to transfer it to a flexi drawdown scheme. Im not working and over 55. I can not find a IPA to do this, no one wants to know. Has anyone else had the same issues?
    Thanks
    Do you really mean a pension pot, separate form your main DB benefits?

    Or are you referring to your DB LGPS Pension?
  • dunstonh
    dunstonh Posts: 115,664
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    I have a small pension pot (just over the £30K) with my local government pension scheme and want to transfer it to a flexi drawdown scheme.

    It is highly unlikely that would be the best option.  I can't see an IFA saying that is suitable.   


    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • jimjames
    jimjames Posts: 17,494
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    How do you know the value of the pension pot? I thought the LGPS was a defined benefit scheme where you have a guaranteed amount per year?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • xylophone
    xylophone Posts: 43,846
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    I have a small pension pot (just over the £30K) 

    So that you would be required to take advice from a Pension Transfer Specialist.

    If you can find one to take the case, the cost will not be low.

    If you were advised not to transfer, your choice of providers to take the transfer as an insistent client would be very limited.


    https://www.mandg.com/pru/adviser/en-gb/insights-events/insights-library/transfer-pension-scheme

  • Its is small beer as previously mentioned and my plan was to move it to a drawdown, cash 25% tax free and then cash the remainder over a couple of years, minimising tax.
    I have various pensions and another drawdown, money is not a big issue for me. I have just over  £40k money pot and been offered just over £6k and £84/month. Woopydoo.
  • dunstonh
    dunstonh Posts: 115,664
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    Its is small beer as previously mentioned and my plan was to move it to a drawdown, cash 25% tax free and then cash the remainder over a couple of years, minimising tax.
    Or use this pension to allow you to draw more flexibly on the rest.

     I have just over  £40k money pot and been offered just over £6k and £84/month. Woopydoo.
    And what is the problem with that?   

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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