Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Dutch Pedro
    • By Dutch Pedro 18th Jun 19, 10:26 AM
    • 1Posts
    • 0Thanks
    Dutch Pedro
    Defined LPGS Pension
    • #1
    • 18th Jun 19, 10:26 AM
    Defined LPGS Pension 18th Jun 19 at 10:26 AM
    Hi all,
    I have an LGPS pension, with a value of about 130k
    Having asked several companies for advice, the advice provided is very different.
    Some companies have advised to take it out and invest, paying their cost.
    Other companies strongly advise against.
    My point is that when I die, my pot mostly goes with me leaving my spouse without.
    Also why does the advice need to be so expensive, typically 6 / 8k
    Has anyone got any similar experiences.
    Pedro
Page 1
    • xylophone
    • By xylophone 18th Jun 19, 10:38 AM
    • 30,180 Posts
    • 18,486 Thanks
    xylophone
    • #2
    • 18th Jun 19, 10:38 AM
    • #2
    • 18th Jun 19, 10:38 AM
    My point is that when I die, my pot mostly goes with me leaving my spouse without.
    Does your LGPS pension not pay a widow's pension?

    You have obtained a CETV of 130,000?

    You are seeking to transfer out to a DC arrangement?

    The advice of a Pension Transfer Specialist is mandatory - it is a high risk transaction for the PTS and he will be paying a high premium to his PI insurer - you are paying for his professional expertise and his costs.

    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf
    • Silvertabby
    • By Silvertabby 18th Jun 19, 12:36 PM
    • 4,369 Posts
    • 6,825 Thanks
    Silvertabby
    • #3
    • 18th Jun 19, 12:36 PM
    • #3
    • 18th Jun 19, 12:36 PM
    The LGPS does indeed pay survivor's benefits to eligible spouses/partners, at a rate of between 35% and 50% of the member's pension (with reductions for commutation/early payment being ignored).
    • enthusiasticsaver
    • By enthusiasticsaver 18th Jun 19, 1:00 PM
    • 8,756 Posts
    • 20,309 Thanks
    enthusiasticsaver
    • #4
    • 18th Jun 19, 1:00 PM
    • #4
    • 18th Jun 19, 1:00 PM
    As silvertabby says your Lgps pays 50% to survivor if you die. Mine does the same. The cost of the advice covers insurance for the pension transfer specialist if they organise the transfer (not sure what happens if they advise against it and you do it anyway) and then 10 years down the line you sue them quite rightly for the loss of such a valuable benefit.


    What is to stop someone transferring the 130k to a drawdown pension and then spending it within a couple of years leaving them with nothing to live on? That is why it is not recommended and is probably only worth considering if you will only live for a few years after retirement and have no spouse.


    I have a small DB pension with an old employer which pays out around 4000 next year and I was considering transferring that. None of the pension transfer specialists I spoke to would quote less than 5k for even looking at it which made me see that maybe it would not be such a great idea considering the transfer value was only 65k. Also any IFA would have to look at your finances as a whole which is expensive and time consuming. They have to do that though to advise whether it is better to keep it or transfer it with the assumption you may withdraw the whole lot.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

98Posts Today

1,418Users online

Martin's Twitter