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Help please re taking pension funds from LGPS and investing for retirement
squashabe
Posts: 25 Forumite
Hello. Can anyone please help. I'm looking at options to start flexible retirement and possibly use a financial consultant to take all my pension funds out of the LGPS and invest this for my retirement. I understand that my pension will stop when my wife and I are no longer around to collect it. If possible I would like any remaining funds to go to my family.
Thanks
Adrian
Thanks
Adrian
0
Comments
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Why on earth do you want to transfer out from LGPS at a horrible multiple? It is well known that the multiples are dire for LGPS. What are your CETV and the expected index-linked annuity then?0
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I think you need to have a rethink.
The CETV from the LGPS will be nowhere near high enough to buy an income even close to the one you already have from the LGPS.
Assuming you expect an income level the same as the LGPS, by the time you pay an IFA to do the analysis and manage the funds, pay the platform fees, pay the fund fees, drawdown more than a safe withdrawl rate to make up for the low CETV and then the stock market falls 40 or 50%, you also wont have anything to pass on as you will run out of money.
Taking the LGPS as a pension and paying for whole of life insurance out of the income would be a more sensible way to meet your objective.0 -
There's no 'possibly' about it - if your transfer is £30,000 or more, you are required by law to receive advice from an impartial adviser who is authorised to advise on pension transfers. If you don't have one already, the FCA register is your starting point - check that the adviser you choose has the correct 'permissions' and is willing to sign whatever forms the LGPS requires before transferring your funds.
Finding an adviser with the relevant permissions, in the current anti-DB transfer climate, is very difficult. The chances of finding one who will give a positive recommendation is about zero, so make sure that the pension scheme to which you wish to transfer will accept an 'insistent client'.0 -
use a financial consultant
One assumes that the value of your DB pensions is greater than £30,000. A Pension Transfer Specialist will be required.
https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/pension-transfers-conversions/
https://forums.moneysavingexpert.com/discussion/6032686/dont-use-hargreaves-lansdown0 -
Do you have a life limiting condition? Unless you do, and it's very life limiting, you'd be barking mad to do that and no one other than a corrupt financial advisor who would steal your money would recommend you did this.
As said use some of your pension to pay for a life assurance policy or just invest some of it.0 -
A pension is to provide income for yourself until you die.
With LGPS you have guaranteed income for life and payments to your spouse. Think of it as wages you didn't get whilst you were working.
By all means go and see an advisor, but rather than cashing in the goose which lays golden eggs, ask how you can use this guarantee of income to provide for your family while you are alive.
Life insurance, investing, shared property ownership with a family member etc0 -
I would seriously rethink that. The LGPS is a rare DB scheme giving you a guaranteed income. Transferring will be expensive even if you can get a pension transfer specialist to advise on it. Most will tell you not to do it.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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Thanks everyone for your help. I'll take your advice and stay in the LGPS.
Regards
Adrian0
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