Superannuation early retirement

Sarahspangles

Maverick1251 said:

Sorry for the confusion, my pension is with GMPF and is local government authority with 38 unbroken years, when I said frozen.. I meant no longer contributing to it. 

When I said about the “pot” I meant that if I didn’t claim until I’m 67, would the £122.208 I haven’t had by not claiming at 60 be added to the value when I claim at 67

The information in this thread might mislead you as I believe your scheme is one of the Local Government Pension Scheme funds. If you joined around ‘87 then your pension may have Rule of 85 protection for the portion of your pension built up to mid 2008. If you start your pension into payment at 60 only the part built up after mid 2008 is paid reduced. If you don’t start your pension at 60 then you lose the pension payments that are Rule of 85 guaranteed payments. As in, they aren’t paid in arrears and they don’t earn you more pension later. Whereas your actuarial reduction for your post 2008 pension isn’t ‘punitive’, it’s just the same money as if you retired at the normal age for that potion, just spread over a longer period.

I have two deferred LGPS schemes and the functionality of the two online pension portals is different. One can generate a forecast that calculates my pension taking account of the R85 protection, the other can’t. I think GMPF is one of the bigger funds so hopefully theirs is accurate? I tested the one of mine that works by inputting retirement dates a month before, on my birthday and a month after and there was a big jump at 60.

Maverick1251

Sarahspangles said:

Maverick1251 said:

Sorry for the confusion, my pension is with GMPF and is local government authority with 38 unbroken years, when I said frozen.. I meant no longer contributing to it. 

When I said about the “pot” I meant that if I didn’t claim until I’m 67, would the £122.208 I haven’t had by not claiming at 60 be added to the value when I claim at 67

The information in this thread might mislead you as I believe your scheme is one of the Local Government Pension Scheme funds. If you joined around ‘87 then your pension may have Rule of 85 protection for the portion of your pension built up to mid 2008. If you start your pension into payment at 60 only the part built up after mid 2008 is paid reduced. If you don’t start your pension at 60 then you lose the pension payments that are Rule of 85 guaranteed payments. As in, they aren’t paid in arrears and they don’t earn you more pension later. Whereas your actuarial reduction for your post 2008 pension isn’t ‘punitive’, it’s just the same money as if you retired at the normal age for that potion, just spread over a longer period.

I have two deferred LGPS schemes and the functionality of the two online pension portals is different. One can generate a forecast that calculates my pension taking account of the R85 protection, the other can’t. I think GMPF is one of the bigger funds so hopefully theirs is accurate? I tested the one of mine that works by inputting retirement dates a month before, on my birthday and a month after and there was a big jump at 60.

I do come under the rule of 85, but it doesn’t seem to make any difference on my pension calculator. I put a leaving date of 1st July (2 weeks before my 60th) and another for my 60th and there’s £50 per year difference in both quotes 

Maverick1251

The two calculations before and after 60

Sarahspangles

Maverick1251 said:

Sarahspangles said:

Maverick1251 said:

Sorry for the confusion, my pension is with GMPF and is local government authority with 38 unbroken years, when I said frozen.. I meant no longer contributing to it. 

When I said about the “pot” I meant that if I didn’t claim until I’m 67, would the £122.208 I haven’t had by not claiming at 60 be added to the value when I claim at 67

The information in this thread might mislead you as I believe your scheme is one of the Local Government Pension Scheme funds. If you joined around ‘87 then your pension may have Rule of 85 protection for the portion of your pension built up to mid 2008. If you start your pension into payment at 60 only the part built up after mid 2008 is paid reduced. If you don’t start your pension at 60 then you lose the pension payments that are Rule of 85 guaranteed payments. As in, they aren’t paid in arrears and they don’t earn you more pension later. Whereas your actuarial reduction for your post 2008 pension isn’t ‘punitive’, it’s just the same money as if you retired at the normal age for that potion, just spread over a longer period.

I have two deferred LGPS schemes and the functionality of the two online pension portals is different. One can generate a forecast that calculates my pension taking account of the R85 protection, the other can’t. I think GMPF is one of the bigger funds so hopefully theirs is accurate? I tested the one of mine that works by inputting retirement dates a month before, on my birthday and a month after and there was a big jump at 60.

I do come under the rule of 85, but it doesn’t seem to make any difference on my pension calculator. I put a leaving date of 1st July (2 weeks before my 60th) and another for my 60th and there’s £50 per year difference in both quotes 

It might be worth asking if the calculator can handle the R85 calculation. Or it’s possible mine was more significant as only a small proportion isn’t covered by R85.

There are a couple of real LGPS specialists who may notice this thread soon and chip in.

Maverick1251

I think I’ve finally got my head round what I’ve been advised!
But does anyone have an idea how much my pension could be if I put it on hold at 60 and cash in at 67
my current estimated final salary pension if I remain until 67 is £26.800
I don’t need my pension yet but have an opportunity in a new role which would mean I would have to leave gmpf.
But I don’t want to take on the new role if it takes too much from a pension I've worked really hard for.

Maverick1251

Sarahspangles said:

Maverick1251 said:

Sarahspangles said:

Maverick1251 said:

Sorry for the confusion, my pension is with GMPF and is local government authority with 38 unbroken years, when I said frozen.. I meant no longer contributing to it. 

When I said about the “pot” I meant that if I didn’t claim until I’m 67, would the £122.208 I haven’t had by not claiming at 60 be added to the value when I claim at 67

The information in this thread might mislead you as I believe your scheme is one of the Local Government Pension Scheme funds. If you joined around ‘87 then your pension may have Rule of 85 protection for the portion of your pension built up to mid 2008. If you start your pension into payment at 60 only the part built up after mid 2008 is paid reduced. If you don’t start your pension at 60 then you lose the pension payments that are Rule of 85 guaranteed payments. As in, they aren’t paid in arrears and they don’t earn you more pension later. Whereas your actuarial reduction for your post 2008 pension isn’t ‘punitive’, it’s just the same money as if you retired at the normal age for that potion, just spread over a longer period.

I have two deferred LGPS schemes and the functionality of the two online pension portals is different. One can generate a forecast that calculates my pension taking account of the R85 protection, the other can’t. I think GMPF is one of the bigger funds so hopefully theirs is accurate? I tested the one of mine that works by inputting retirement dates a month before, on my birthday and a month after and there was a big jump at 60.

I do come under the rule of 85, but it doesn’t seem to make any difference on my pension calculator. I put a leaving date of 1st July (2 weeks before my 60th) and another for my 60th and there’s £50 per year difference in both quotes 

It might be worth asking if the calculator can handle the R85 calculation. Or it’s possible mine was more significant as only a small proportion isn’t covered by R85.

There are a couple of real LGPS specialists who may notice this thread soon and chip in.

The quote did say it should include any rule of 85 calculations 

Marcon

Cobbler_tone said:

Dazed_and_C0nfused said:

Maverick1251 said:

I have paid into my pension for 38 years and was hoping to retire at 60 thinking I would loose about 10% of my pension, but after getting a quote, I would actually loose 36% of what was predicted which works out at just over £10.000 per year. 

My yearly pension would only be £17.440.
But what I’d like to know is, what if I don’t retire and just leave. Then claim my pension at 67 after freezing it for 7 years?
Will the 7 years I don’t claim for increase the value of my retirement pot and what can my pension prediction be without those 7 years?
if I stay in work until 67, my predicted pot is £28.000

Why do you think it would be "frozen"?  Is there no annual inflation increase?

My DB is frozen, until it comes into payment and has been since 2021. The reason I don't touch it is because of reduction factors.
Assuming this isn't the case with many schemes from what I've read on numerous threads on here?

That seems a bit unlikely - when did you leave 'active' membership of the scheme ('active' means you were still employed by the relevant employer and building up benefits within your DB scheme)? Why do you think it really is 'frozen' in the 'isn't increasing at all' sense of the word, which seems to be what you are suggesting?

You clearly haven't reached the scheme's normal retirement age, and unless you left prior to 1 January 1985 and the scheme was contracted in, I'd expect statutory revaluation to be doing its bit.

Sarahspangles

Maverick1251 said:

I think I’ve finally got my head round what I’ve been advised!
But does anyone have an idea how much my pension could be if I put it on hold at 60 and cash in at 67
my current estimated final salary pension if I remain until 67 is £26.800
I don’t need my pension yet but have an opportunity in a new role which would mean I would have to leave gmpf.
But I don’t want to take on the new role if it takes too much from a pension I've worked really hard for.

It’s better to use the correct terms. If you leave for a new non-LGPS role, your pension will be deferred. You then ‘commence’ or draw your pension at a later date. In particular ‘cashing in’ implies something very different!

While you are a deferred member, your pension will be annually revalued to keep pace with inflation. You will get an annual statement telling you what you will get. They can’t take it away from you.

You might be missing out on some money though if you don’t commence your pension at 60. There are implications if you draw a pension while still working, like potentially earning enough to pay higher rate tax. Maybe someone will work it out for you if you say what your pension is at 60 versus your planned retirement age, and a ballpark of the salary from the job you’re interested in.

Cobbler_tone

Marcon said:

Cobbler_tone said:

Dazed_and_C0nfused said:

Maverick1251 said:

I have paid into my pension for 38 years and was hoping to retire at 60 thinking I would loose about 10% of my pension, but after getting a quote, I would actually loose 36% of what was predicted which works out at just over £10.000 per year. 

My yearly pension would only be £17.440.
But what I’d like to know is, what if I don’t retire and just leave. Then claim my pension at 67 after freezing it for 7 years?
Will the 7 years I don’t claim for increase the value of my retirement pot and what can my pension prediction be without those 7 years?
if I stay in work until 67, my predicted pot is £28.000

Why do you think it would be "frozen"?  Is there no annual inflation increase?

My DB is frozen, until it comes into payment and has been since 2021. The reason I don't touch it is because of reduction factors.
Assuming this isn't the case with many schemes from what I've read on numerous threads on here?

That seems a bit unlikely - when did you leave 'active' membership of the scheme ('active' means you were still employed by the relevant employer and building up benefits within your DB scheme)? Why do you think it really is 'frozen' in the 'isn't increasing at all' sense of the word, which seems to be what you are suggesting?

You clearly haven't reached the scheme's normal retirement age, and unless you left prior to 1 January 1985 and the scheme was contracted in, I'd expect statutory revaluation to be doing its bit.

I'm still employed by the same company and it closed in 2021, switching to an alternative DC scheme.
I track it closely and TBF it is a really good portal, which I have calibrated with written quotes. The salary used is the salary I was on when it closed.

The only time it changes is by changing the dates, i.e. it increases the longer you leave it as you'd expect. Then the scheme rules cite increases once in payment, capped by RPI/CPI at 5%/2.5% before/after 2010. 
I confirmed this with the Trustee's for the correct understanding. 

Marcon

Cobbler_tone said:

Marcon said:

Cobbler_tone said:

Dazed_and_C0nfused said:

Maverick1251 said:

I have paid into my pension for 38 years and was hoping to retire at 60 thinking I would loose about 10% of my pension, but after getting a quote, I would actually loose 36% of what was predicted which works out at just over £10.000 per year. 

My yearly pension would only be £17.440.
But what I’d like to know is, what if I don’t retire and just leave. Then claim my pension at 67 after freezing it for 7 years?
Will the 7 years I don’t claim for increase the value of my retirement pot and what can my pension prediction be without those 7 years?
if I stay in work until 67, my predicted pot is £28.000

Why do you think it would be "frozen"?  Is there no annual inflation increase?

My DB is frozen, until it comes into payment and has been since 2021. The reason I don't touch it is because of reduction factors.
Assuming this isn't the case with many schemes from what I've read on numerous threads on here?

That seems a bit unlikely - when did you leave 'active' membership of the scheme ('active' means you were still employed by the relevant employer and building up benefits within your DB scheme)? Why do you think it really is 'frozen' in the 'isn't increasing at all' sense of the word, which seems to be what you are suggesting?

You clearly haven't reached the scheme's normal retirement age, and unless you left prior to 1 January 1985 and the scheme was contracted in, I'd expect statutory revaluation to be doing its bit.

I'm still employed by the same company and it closed in 2021, switching to an alternative DC scheme.
I track it closely and TBF it is a really good portal, which I have calibrated with written quotes. The salary used is the salary I was on when it closed.

The only time it changes is by changing the dates, i.e. it increases the longer you leave it as you'd expect. Then the scheme rules cite increases once in payment, capped by RPI/CPI at 5%/2.5% before/after 2010. 
I confirmed this with the Trustee's for the correct understanding. 

So it isn't 'frozen' in the 'doing absolutely nothing'(!) sense of the word - it's revaluing in deferment, as you'd expect.