LGPS, deferred pensions and retirement age pennystretcher

#1
Hi,



Just looking for some information here. I am currently a member of LGPS and planning for the future.



The scheme changed in 2015 and retirement age is now linked to state defined retirement age.

If I keep working for the same company, but decide to leave the pension scheme before I finish working for the same company, will the retirement age be frozen?



My thinking behind this is to top up the pension with as many APCs as I can and if the retirement age is going to go up AGAIN would it make sense to leave the scheme earlier? (if I have enough in the plan to support me in retirement)



I don't want to work 'til I'm in my seventies... At the moment I'm already calculating that with reduction I might be able to stop paying to the scheme in about 12 years' time and have couple of years off before retiring at 60 (7 years early and with 69% of the pension) - if I have paid all the extra I can. (yes I'm in this in long run) Obviously anything over that 12 years would be bonus, but if the retirement age keeps going up, it's like running in a hamster ball, never catching the goal.

#2
The state pension age is going to go up with increasing life expectancy. But if you squint at the graphs for the last few years you could persuade yourself that life expectancy has just about stopped growing. So maybe the hamster could relax.

#3



The scheme changed in 2015 and retirement age is now linked to state defined retirement age.

If I keep working for the same company, but decide to leave the pension scheme before I finish working for the same company, will the retirement age be frozen?
Originally posted by pennystretcher


If you mean, were your state pension age to rise in the future - no, given your NPA is the CARE scheme is directly linked to your SPA. If you mean, were the scheme to set a different definition of NPA - yes, so long as you didn't then aggregate the service anyway. However, benefits already earned wouldn't suddenly get a later NPA in such a situation. E.g., if you have final salary benefits in the LGPS, their NPA didn't suddenly change to SPA when the CARE scheme came in.






My thinking behind this is to top up the pension with as many APCs as I can and if the retirement age is going to go up


If you're looking to cover early retirement, then an APC possibly isn't your best option, given it will attract the same actuarial reduction that main scheme benefits would. Perhaps looking at a completely separate personal pension instead might be a better option...?

#4
My final salary part (to 31st Mar 2015) is 60 NRA, it's the new CARE scheme from 1st Apr 2015 that I'm thinking about. It is currently sitting @NRA 65 (tied to SPA), forecasted to raise to 67 when I would be able to retire.



I have based the reduction on both main scheme and additional payments, although I loathe to see the percentages. If I recall it you can split APCs from main scheme when you start withdrawing pension, leaving one part to be taken on later on, which will be good if I have enough savings to keep me going for couple of years after turning 60 (although I need to double-check this) My worry is that the reduction % will go up with the SPA raises, and wouldn't be able to start drawing at 60 @69% of the rate - which would bust my forecast. (Someone give me a crystal ball so that I can tell what will happen in the future!!)



With the APCs, at least I still get the tax relief - 'til some politician decides otherwise :P



I also have couple of small pots in previous AVC schemes, have not included these in my forecast as they are so small.



Any suggestions where else I should look at for squirreling the money away? AVCs, peer-to-peer etc? Am quite willing to do research if you have ideas



I already do a round robin with my savings to get the best interest rates there are and once my mortgage has been paid off, will have some more extra to put towards old age (sadly most of my colleagues would say I'm a miser worrying about it now, but I rather save now than regret later - I can survive without that latest mobile, TV, car etc)

#5



My final salary part (to 31st Mar 2015) is 60 NRA, it's the new CARE scheme from 1st Apr 2015 that I'm thinking about. It is currently sitting @NRA 65 (tied to SPA), forecasted to raise to 67 when I would be able to retire.
Originally posted by pennystretcher


Is it possible to retire at 60 and draw the FS pension, while also transferring out the CARE pension into a DC scheme and using it to bridge the gap until your State Pension begins?

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