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LGPS Changes -sanity check please
dgbshifnal
Posts: 36 Forumite
The changes to the LGPS have just been announced.
It appears that, at 59, if I wish to buy an addition £250 per annum pension (no dependant benefit), I have to pay £72.83 per month until 65.
I think therefore there is a cost of 72.83 x 12 = 873.96 pa
873.96 x 5 = 4369.80.
therefore it will take 17.5 years approx before breaking even (65+17.5=82.5 years old)- is that logic right?
go earlier than 65 and an actuarial adjustment is applied.
It appears that, at 59, if I wish to buy an addition £250 per annum pension (no dependant benefit), I have to pay £72.83 per month until 65.
I think therefore there is a cost of 72.83 x 12 = 873.96 pa
873.96 x 5 = 4369.80.
therefore it will take 17.5 years approx before breaking even (65+17.5=82.5 years old)- is that logic right?
go earlier than 65 and an actuarial adjustment is applied.
0
Comments
-
That extra £250 pension is indexed linked so break even will be sooner.
Alternatively paying that £72.83 into an ISA may be a better financial move. Have a look at the sticky Pension vs ISA thread above for the reasoning0
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