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  • FIRST POST
    • squashabe
    • By squashabe 19th Nov 19, 6:17 PM
    • 16Posts
    • 2Thanks
    squashabe
    Help please re taking pension funds from LGPS and investing for retirement
    • #1
    • 19th Nov 19, 6:17 PM
    Help please re taking pension funds from LGPS and investing for retirement 19th Nov 19 at 6:17 PM
    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
Page 1
    • JoeCrystal
    • By JoeCrystal 19th Nov 19, 6:25 PM
    • 1,985 Posts
    • 1,409 Thanks
    JoeCrystal
    • #2
    • 19th Nov 19, 6:25 PM
    • #2
    • 19th Nov 19, 6:25 PM
    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?
    • Drp8713
    • By Drp8713 19th Nov 19, 6:26 PM
    • 871 Posts
    • 759 Thanks
    Drp8713
    • #3
    • 19th Nov 19, 6:26 PM
    • #3
    • 19th Nov 19, 6:26 PM
    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.
    • Dox
    • By Dox 19th Nov 19, 6:29 PM
    • 1,770 Posts
    • 1,340 Thanks
    Dox
    • #4
    • 19th Nov 19, 6:29 PM
    • #4
    • 19th Nov 19, 6:29 PM
    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'.
    • xylophone
    • By xylophone 19th Nov 19, 6:46 PM
    • 31,665 Posts
    • 19,638 Thanks
    xylophone
    • #5
    • 19th Nov 19, 6:46 PM
    • #5
    • 19th Nov 19, 6:46 PM
    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/showthread.php?t=6032686
    • AnotherJoe
    • By AnotherJoe 19th Nov 19, 6:47 PM
    • 16,355 Posts
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    AnotherJoe
    • #6
    • 19th Nov 19, 6:47 PM
    • #6
    • 19th Nov 19, 6:47 PM
    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.
    • daveyjp
    • By daveyjp 19th Nov 19, 8:37 PM
    • 8,480 Posts
    • 7,111 Thanks
    daveyjp
    • #7
    • 19th Nov 19, 8:37 PM
    • #7
    • 19th Nov 19, 8:37 PM
    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 etc
    • enthusiasticsaver
    • By enthusiasticsaver 19th Nov 19, 11:13 PM
    • 9,588 Posts
    • 22,270 Thanks
    enthusiasticsaver
    • #8
    • 19th Nov 19, 11:13 PM
    • #8
    • 19th Nov 19, 11:13 PM
    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.
    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
    • squashabe
    • By squashabe 20th Nov 19, 8:41 AM
    • 16 Posts
    • 2 Thanks
    squashabe
    • #9
    • 20th Nov 19, 8:41 AM
    • #9
    • 20th Nov 19, 8:41 AM
    Thanks everyone for your help. I'll take your advice and stay in the LGPS.

    Regards

    Adrian
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