LGPS & State Pension Age

seans_elysees

I and 43m and joined LGPS in 2017 on the CARE scheme - which I understand is tied to the State Pension Age. For me, this is currently aged 68. (with the increase from 67→68 scheduled for sometime 2044-46)

The current implementation of the SPA rise to 67 got me thinking about the risks around this for planning for retirement and whether there is anything LGPS do to protect members.

For example, say the government actually increase my SPA to 70 - does that simply mean that the age at which I can claim my full LGPS is delayed by 2 years?

I know that previous schemes were not necessarily tied directly to SPA, so I guess my question is whether this step-change is now the first wave of LGPS members who would be most directly impacted by SPA rises.

hugheskevi

For example, say the government actually increase my SPA to 70 - does that simply mean that the age at which I can claim my full LGPS is delayed by 2 years?

You can claim your pension at any age after 55, but it will be reduced for early payment. Should SPA increase to 70, you could still claim from any age after 55 but the actuarial reduction would be higher.

Currently you are able to take your LGPS pension without reduction from age 68. If State Pension age increases to 70 you would then be able to take your LGPS pension without reduction from age 70. If following the increase to SPA you took your LGPS pension at age 68 there would a reduction applied for taking it 2 years early (reductions are usually about 4-5 percentage points per year taken early).

I know that previous schemes were not necessarily tied directly to SPA, so I guess my question is whether this step-change is now the first wave of LGPS members who would be most directly impacted by SPA rises.

The link to State Pension age only applies to the new CARE schemes, introduced in 2014 and 2015.

I and 43m and joined LGPS in 2017 on the CARE scheme - which I understand is tied to the State Pension Age. For me, this is currently aged 68. (with the increase from 67→68 scheduled for sometime 2044-46)

The increase to 68 is likely to be brought forward. Note that there is a review of State Pension age currently underway.

Baldytyke88

Since the OP is 43, he/she can generally access private and workplace pensions from age 57, but this will likely increase in the coming years.

hugheskevi

https://forums.moneysavingexpert.com/discussion/comment/81961935#Comment_81961935

Joined LGPS pre 2021 so has a protected minimum pension age of 55.

seans_elysees

Thanks. That's pretty much what I was aware of so thanks for confirming.

I expect you are correct that the increase to 68 will be brought forward given the speculation they are making, It's just a question of whether another rise comes in even earlier as that will obviously impact my planning for a bridge until I take my LGPS.