Husband retires officially in 2026 - Looking at our options for retirement.

xylophone

I would pay for voluntary contributions using any savings you have, or get a part time job.



Be careful - you mentioned that your state pension forecast shows that at 5/4/23 you had almost reached a full NSP?

You are still working and paying/being credited with NI?

Will 23/24 be a qualifying year? See link in my previous post.

Kernowshep

Off the back of a Atush's comment

It's worth considering paying into an AVC linked to his LGPS pension (assuming that your husband is still working there), especially if the payment can be done by salary sacrifice out of his salary.  You can "pay" yourself from savings to top up the reduced take home pay.  By paying into the AVC, he would be able to save the tax now (and possibly NI, and sometimes have additional NI savings added to the amount, depending on the scheme) so it costs you less to add to the pension (or your amount gets topped up, it results in the pretty much same thing), and then you can take it out tax free as a lump sum if he takes it at the same time as the rest of his LGPS pension (up to 25% of, the annual LGPS pension amount x20 + any lump sum, + any AVC funds, so probably up to about £40k on your figures).  The following links might be useful.
- https://www.lgpsmember.org/your-pension/paying-in/paying-more/
- https://home.avcwise.co.uk/knowledge-hub (not all schemes have shared cost AVC options, but some of the info here might help explain it).
- there should be someone in his HR / Employee Benefits / pensions team that can explain his options.

As others have said, if applicable it's worth considering using savings (or possibly a separate pension) to bridge any gap between him leaving and SPA when the LGPS pension can be taken without the yearly pension being less because it was taken early (actuarial reduction).

I certainly wouldn't be reducing my pension for the TFLS at a 12:1 conversion.

theoretica

At the moment, if you survive him, you will have considerably less income than if he survives you.  If you are able to put any more into pension savings over the next few years it might be wise looking at something that would not reduce if he dies before you - perhaps something in your name.

Freedomforever

theoretica said:

At the moment, if you survive him, you will have considerably less income than if he survives you.  If you are able to put any more into pension savings over the next few years it might be wise looking at something that would not reduce if he dies before you - perhaps something in your name.

Thank you for taking the time to highlight this fact! I’m now enlightened and able to reconsider my options. 

Freedomforever

Kernowshep said:

Off the back of a Atush's comment

It's worth considering paying into an AVC linked to his LGPS pension (assuming that your husband is still working there), especially if the payment can be done by salary sacrifice out of his salary.  You can "pay" yourself from savings to top up the reduced take home pay.  By paying into the AVC, he would be able to save the tax now (and possibly NI, and sometimes have additional NI savings added to the amount, depending on the scheme) so it costs you less to add to the pension (or your amount gets topped up, it results in the pretty much same thing), and then you can take it out tax free as a lump sum if he takes it at the same time as the rest of his LGPS pension (up to 25% of, the annual LGPS pension amount x20 + any lump sum, + any AVC funds, so probably up to about £40k on your figures).  The following links might be useful.
- https://www.lgpsmember.org/your-pension/paying-in/paying-more/
- https://home.avcwise.co.uk/knowledge-hub (not all schemes have shared cost AVC options, but some of the info here might help explain it).
- there should be someone in his HR / Employee Benefits / pensions team that can explain his options.

As others have said, if applicable it's worth considering using savings (or possibly a separate pension) to bridge any gap between him leaving and SPA when the LGPS pension can be taken without the yearly pension being less because it was taken early (actuarial reduction).

I certainly wouldn't be reducing my pension for the TFLS at a 12:1 conversion.

Thanks for this additional information, very helpful.
Some of the pension abbreviations I’m not familiar with, TFLS - Is this Transport for London scheme?

My husband is considering retiring before September 2026 - his SPA retirement date.
If doing so the option we thought best for us was for him to defer taking the LGPS work pension until SPA.
I guess he would lose the opportunity to add a further year or so of contributions thus reducing his final pension payable? Alternatively he works until SPA taking any extra pension he can build up.

Everything that I’m reading suggests I actually need to look at my pension provisions should my husband pre decease me. As ours is a fairly modest income I think we’d have to address this first.

NoMore

Some of the pension abbreviations I’m not familiar with, TFLS - Is this Transport for London scheme?

 Not quite! Tax Free Lump Sum

Freedomforever

xylophone said:

I would pay for voluntary contributions using any savings you have, or get a part time job.



Be careful - you mentioned that your state pension forecast shows that at 5/4/23 you had almost reached a full NSP?

You are still working and paying/being credited with NI?

Will 23/24 be a qualifying year? See link in my previous post.

Thanks again for your supporting observations. Yes 23/24 is a qualifying year.
Yes I’m reluctant to make any voluntary contributions until I can double check when this tax year is complete and updated online.
I have also made enquiries to a recent pension provider that I had closed down after claiming a small sum during the pandemic. In hindsight perhaps I should have kept and started to make contributions.

I am endeavouring to make a decision 😊

xylophone

If you are working, is there a workplace pension scheme?

Freedomforever

NoMore said:

Some of the pension abbreviations I’m not familiar with, TFLS - Is this Transport for London scheme?

 Not quite! Tax Free Lump Sum

Aah I see, yes of course that makes sense.
I previously had a google and “Transport for London Scheme” were my findings! 

Made me smile 😂 So thank you for taking the time to let me know. 

Freedomforever

xylophone said:

If you are working, is there a workplace pension scheme?

Reading through other comments I have been advised that I can save a small yearly amount towards retirement regardless of employment status. It will just be a basic scheme without heavy charges that I’m looking to invest into.