Should I take my LGPS early?

hyubh

dont_use_vistaprint said:

Silvertabby said:

Would leaving it deferred to age 60 be an option?

You would meet R85 in respect of your pre 2008 accruals then, meaning zero reductions to your lump sum and just 5 years early reductions to your post 2008 benefits   

I’m not sure about this, my understanding for my age & contribution is the pension will be reduced by 41.8% and the lump sum by 15.5% , although having checked again since the change in 2023 the 15.5% of reduction won’t apply to the whole of the lump sum.

it’s very difficult to check things like above they take weeks and weeks to respond to the most simple query.

but I don’t understand how I could meet R85 having only 10.5 years of contributions ? 

What counts is from joining the scheme to drawing the pension, excluding any service gaps within the membership record (e.g. if you joined in 2000, left in 2003, rejoined in 2008 and aggregated with/transferred in the earlier service, 2003-2008 would be a service gap in the combined membership starting from 2000).

Silvertabby

dont_use_vistaprint said:

Silvertabby said:

Would leaving it deferred to age 60 be an option?

You would meet R85 in respect of your pre 2008 accruals then, meaning zero reductions to your lump sum and just 5 years early reductions to your post 2008 benefits   

I’m not sure about this, my understanding for my age & contribution is the pension will be reduced by 41.8% and the lump sum by 15.5% , although having checked again since the change in 2023 the 15.5% of reduction won’t apply to the whole of the lump sum.

it’s very difficult to check things like above they take weeks and weeks to respond to the most simple query.

but I don’t understand how I could meet R85 having only 10.5 years of contributions ? 

Because your deferred membership - ie, from the date you left until age 60 - also counts towards R85.

dont_use_vistaprint

Johnnyboy11 said:

Another minor point is to be mindful that the annual CPI uplift is applied in April each year, so you might want to choose a  pension commencement date in say early May, so that the uplift is also applied to your TFLS. Might be around 4% applied in April next year, worth having.

Oh I never thought about that actually, I know it was only 1.7% this April but previously was 10% and 6%, these high numbers really make a big difference. 

So if I took it in the fall of 2025, I could potentially lose 4% that is due next April on both the lump sum  and the annual pension?

Johnnyboy11

You’d only lose out on the uplift to the lump sum element, the annual pension would be uplifted as usual.

BrilliantButScary

https://www.lgpsmember.org/faqs/how-are-pension-increases-calculat

If you finished in the Autumn of the year, your annual pension increase would be proportionate, see above.

I put my LGPS into payment (I was a deferred member),  in June 2023, so really benefitted from the 10.1% increase. 

dont_use_vistaprint

BrilliantButScary said:

https://www.lgpsmember.org/faqs/how-are-pension-increases-calculat

If you finished in the Autumn of the year, your annual pension increase would be proportionate, see above.

I put my LGPS into payment (I was a deferred member),  in June 2023, so really benefitted from the 10.1% increase. 

I’m not fully understanding next April’s rise I’m hearing it is just 1.7% but also hearing that inflation is high at 4%. 

Dazed_and_C0nfused

dont_use_vistaprint said:

BrilliantButScary said:

https://www.lgpsmember.org/faqs/how-are-pension-increases-calculat

If you finished in the Autumn of the year, your annual pension increase would be proportionate, see above.

I put my LGPS into payment (I was a deferred member),  in June 2023, so really benefitted from the 10.1% increase. 

I’m not fully understanding next April’s rise I’m hearing it is just 1.7% but also hearing that inflation is high at 4%. 

Where have you heard that?

QrizB

Dazed_and_C0nfused said:

dont_use_vistaprint said:

I’m not fully understanding next April’s rise I’m hearing it is just 1.7% but also hearing that inflation is high at 4%. 

Where have you heard that?

On last year's news, perhaps?

https://www.lgpsmember.org/2024/10/16/pensions-increase-2025/

hyubh

dont_use_vistaprint said:

BrilliantButScary said:

https://www.lgpsmember.org/faqs/how-are-pension-increases-calculat

If you finished in the Autumn of the year, your annual pension increase would be proportionate, see above.

I put my LGPS into payment (I was a deferred member),  in June 2023, so really benefitted from the 10.1% increase. 

I’m not fully understanding next April’s rise I’m hearing it is just 1.7% but also hearing that inflation is high at 4%. 

The increase in April is the previous September's CPI. Given today is 18 September, the Office for National Statistics has only just released August's CPI figure.

As others have said, you're confusing next April's increase with the increase applied this year.