Any NHS / Local authority DB Pension experts?

MX5huggy

I wouldn’t rule out taking the DB pension(s) early yes there are reductions but these are not penalties just covering the fact the pension will be paid for longer, waiting till SPA only “wins” if you live to 84 plus (ish) which is average and you’ve not said if your wife is going to be using up her personal allowance in the retirement years before SPA when the SP will use most if not all of the personal allowance. 

lg13mza

Thanks all, some useful things to consider and clarified others.

MX5huggy said:

I wouldn’t rule out taking the DB pension(s) early yes there are reductions but these are not penalties just covering the fact the pension will be paid for longer, waiting till SPA only “wins” if you live to 84 plus (ish) which is average and you’ve not said if your wife is going to be using up her personal allowance in the retirement years before SPA when the SP will use most if not all of the personal allowance. 

This is a good point I hadn't considered.  She may not be using her personal allowance in the last few years before taking the DB pension.  Mainly because at this stage we plan to be drawing down my DC pension.  She might have some savings in her name, but it's unlikely to be significant at that point.

Dazed_and_C0nfused

lg13mza said:

Thanks all, some useful things to consider and clarified others.

MX5huggy said:

I wouldn’t rule out taking the DB pension(s) early yes there are reductions but these are not penalties just covering the fact the pension will be paid for longer, waiting till SPA only “wins” if you live to 84 plus (ish) which is average and you’ve not said if your wife is going to be using up her personal allowance in the retirement years before SPA when the SP will use most if not all of the personal allowance. 

This is a good point I hadn't considered.  She may not be using her personal allowance in the last few years before taking the DB pension.  Mainly because at this stage we plan to be drawing down my DC pension.  She might have some savings in her name, but it's unlikely to be significant at that point.

In which case the Personal Allowance wouldn't be needed for that income as the 0% tax bands would come into play.

lg13mza

Dazed_and_C0nfused said:

lg13mza said:

Thanks all, some useful things to consider and clarified others.

MX5huggy said:

I wouldn’t rule out taking the DB pension(s) early yes there are reductions but these are not penalties just covering the fact the pension will be paid for longer, waiting till SPA only “wins” if you live to 84 plus (ish) which is average and you’ve not said if your wife is going to be using up her personal allowance in the retirement years before SPA when the SP will use most if not all of the personal allowance. 

This is a good point I hadn't considered.  She may not be using her personal allowance in the last few years before taking the DB pension.  Mainly because at this stage we plan to be drawing down my DC pension.  She might have some savings in her name, but it's unlikely to be significant at that point.

In which case the Personal Allowance wouldn't be needed for that income as the 0% tax bands would come into play.

Yes, but it's worth considering the possibility of pulling some of the DB pension early, paying what I think is 5% per year penalty if she can still stay within her personal allowance.  It should reduce my tax liability.

Dazed_and_C0nfused

lg13mza said:

Dazed_and_C0nfused said:

lg13mza said:

Thanks all, some useful things to consider and clarified others.

MX5huggy said:

I wouldn’t rule out taking the DB pension(s) early yes there are reductions but these are not penalties just covering the fact the pension will be paid for longer, waiting till SPA only “wins” if you live to 84 plus (ish) which is average and you’ve not said if your wife is going to be using up her personal allowance in the retirement years before SPA when the SP will use most if not all of the personal allowance. 

This is a good point I hadn't considered.  She may not be using her personal allowance in the last few years before taking the DB pension.  Mainly because at this stage we plan to be drawing down my DC pension.  She might have some savings in her name, but it's unlikely to be significant at that point.

In which case the Personal Allowance wouldn't be needed for that income as the 0% tax bands would come into play.

Yes, but it's worth considering the possibility of pulling some of the DB pension early, paying what I think is 5% per year penalty if she can still stay within her personal allowance.  It should reduce my tax liability.

There is rarely, if ever, a penalty for taking a DB pension early.

There is usually a reduction in the amount payable for taking it before NPA for the scheme in question, but that simply reflects the person's request to have the pension paid for a longer period of time.

MX5huggy

lg13mza said:

Thanks all, some useful things to consider and clarified others.

MX5huggy said:

I wouldn’t rule out taking the DB pension(s) early yes there are reductions but these are not penalties just covering the fact the pension will be paid for longer, waiting till SPA only “wins” if you live to 84 plus (ish) which is average and you’ve not said if your wife is going to be using up her personal allowance in the retirement years before SPA when the SP will use most if not all of the personal allowance. 

This is a good point I hadn't considered.  She may not be using her personal allowance in the last few years before taking the DB pension.  Mainly because at this stage we plan to be drawing down my DC pension.  She might have some savings in her name, but it's unlikely to be significant at that point.

Time to windup the old spreadsheet then here are the factors for the different schemes. https://www.lgpsmember.org/your-pension/planning/taking-your-pension/

lg13mza

Thread resurrection!

We have got the NHS docs for transfer.  And it makes little sense at the moment.  I'm not sure if I'm missing something.  It gives us 2 options depending on if we select 1995/2008 scheme benefits or 2008 scheme.  In both options it then only gives us a value for the 2015 element.  But it doesn't quote values for the 2008 element, which is the majority.  Do we have to calculate that part ourselves based on the length of service?