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Pros/Cons Taking LGPS Lump Sum v Monthly Payment
Comments
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KittyS said:Can I ask what the two figures are for?
Sorry but I don't understand your question, which two figures.
Thrifty Till 50 Then Spend Till the End
You can please some of the people some of the time, all of the people some of the time, some of the people all of the time but you can never please all of the people all of the time0 -
With the LGPS you can give up £1 of annual income for £12 in lump sum (not great).KittyS said:Can I ask what the two figures are for?
E.g. swapping about £2850 pa gives about £34k lump sum.
The consideration needs to include the annual pension increases by CPI but the extra will probably be taxed due to other income. Plus considering all the usual debt/how much do you need/other income/health type questions.
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@Ms_Chocaholicit's worth considering paying into an AVC linked to your LGPS pension, this can be taken as a tax free lump sum when you take the rest of your LGPS pension (having had the tax benefits on the way in). If you need to you can subsidise the income you pay into the AVC with savings then replenish with the TFLS.
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