Lgps additional pension bought with AVC

Sarahspangles

Chloe_G said:

I noticed that the online calculator doesn't show any extra uplift for me between 59 and 60 which concerns me as I have got R85.

Is this calculator on a specific LGPS pension fund website? I’m a deferred member of two schemes, only one has a calculator which is capable of calculating my forecast taking account of R85. I think I recall them adding the feature fairly recently.

2biscuit

Sarahspangles said:

Chloe_G said:

I noticed that the online calculator doesn't show any extra uplift for me between 59 and 60 which concerns me as I have got R85.

Is this calculator on a specific LGPS pension fund website? I’m a deferred member of two schemes, only one has a calculator which is capable of calculating my forecast taking account of R85. I think I recall them adding the feature fairly recently.

If you don't mind, can you advise how do you know the calculator takes account of R85 and did you notice a significant change between the values you were quoted before and after this change was made to the calculator. R85 is mentioned a fair bit but I'm never sure whether it makes that much of a difference that I should give it weight in the decision process. I had ignored it and was focusing on whether better to go SIPP rather than buy additional Lgps but this thread has made me reconsider whether that is the right thing to do 

2biscuit

Ah dear just had the estimate and the figures have gone down  from £4.33 per £100 at 56 to £4.07 per £100 at 57. I hadn't even considered the rate would decrease.... 

2biscuit

Speaking to my local LGPS it appears that there was a new set of factors released by government last September hence the drop in value. They suggest it'll take me being 59+ before the factor gets near to the 4.33 per 100 I was initially quoted for 56.
I think that has probably crystallised in my mind that I will go the SIPP route. Many thanks to all for their responses as it has made me think and reassess the situation 

Sarahspangles

2biscuit said:

Sarahspangles said:

Chloe_G said:

I noticed that the online calculator doesn't show any extra uplift for me between 59 and 60 which concerns me as I have got R85.

Is this calculator on a specific LGPS pension fund website? I’m a deferred member of two schemes, only one has a calculator which is capable of calculating my forecast taking account of R85. I think I recall them adding the feature fairly recently.

If you don't mind, can you advise how do you know the calculator takes account of R85 and did you notice a significant change between the values you were quoted before and after this change was made to the calculator. R85 is mentioned a fair bit but I'm never sure whether it makes that much of a difference that I should give it weight in the decision process. I had ignored it and was focusing on whether better to go SIPP rather than buy additional Lgps but this thread has made me reconsider whether that is the right thing to do 

I know because when I input retirement dates of my 59th birthday, 60th etc up to age 65 the amount that I am forecast to get rises fairly steeply from 92.4% at 59 to 97.1% at 60. After 60 every year adds just 0.5%. The reason it’s not 100% at 60 for me is that a small amount of the service contributing to this pension is not covered by R85. I could wait to draw 100% at 65 but I’d miss out on 5 years at 97% of the total so the payback time is well over a hundred years…..

I’m in a different public sector scheme now but also contribute to a SIPP, it gives me flexibility to ‘even out’ my income from the point my first pension starts. In fact I’m now ‘banking’ retirement time pre-60, which will be entirely covered by SIPP drawdown.