Retiring

[denislawsbackheel]

Not exactly sure what that all means but i like the sound of it.

I suggest a long read of this

Home :: LGPS

www.lgpsmember.org

 

[Tommy_Catons_Perm]

She has a defined benefit pension.
Benefits up to 2014 are based on final salary.
Benefits accrued after 2014 are based on career average.
Once taken the pension is index linked for life.
It’s, as an IFA once told me, a licence to print money!

My dad who is nearly 80 has a DB scheme that was set up in the 1970s. The pension payments increase each year by 7% which is insane in this era of low inflation. He has been drawing it for nearly 20 years so you can imagine how much it has increased in real terms. It's too much to spend.

 

[hampshireblue]

My dad who is nearly 80 has a DB scheme that was set up in the 1970s. The pension payments increase each year by 7% which is insane in this era of low inflation. He has been drawing it for nearly 20 years so you can imagine how much it has increased in real terms. It's too much to spend.

And that was another reason why I opted to come out. it allows you to "profile" how you drawdown and when. I was in line to be on £70k due to index linking when I was about 80. I'd rather have it now.

 

[Tommy_Catons_Perm]

And that was another reason why I opted to come out. it allows you to "profile" how you drawdown and when. I was in line to be on £70k due to index linking when I was about 80. I'd rather have it now.

Yes there is a logic to that. I have a couple of DB schemes as well as DC schemes still paying into. I don't need to make such a radical decision. I could "profile" by drawing down DC and saving DB for later years, and/or take lump sum from DB with reduced pension.

 

[denislawsbackheel]

Some of us remember double digit inflation.
A DB pension guarantees index linking.

 

[denislawsbackheel]

Yes there is a logic to that. I have a couple of DB schemes as well as DC schemes still paying into. I don't need to make such a radical decision. I could "profile" by drawing down DC and saving DB for later years, and/or take lump sum from DB with reduced pension.

This is a good read

Transferring your defined benefit pension | MoneyHelper

www.moneyadviceservice.org.uk

 

[Chippy_boy]

A non tax payer can pay £2660 into a private pension each year.

Small point: It's £2,880. £3,600 gross.

 

[jaseirai]

Some of us remember double digit inflation.
A DB pension guarantees index linking.

DB schemes usually have an upper limit to index linking. I doubt there are many which go above 5% these days.
From 2030 the RPI link to DB schemes ends and they will use CPI-H instead. No prizes for guessing which is the lower measure.

 

[ganganvince]

A ballpark figure , what would a financial advisor charge for one off consultation ?

Were are you based I use Burfields based in Northwich who only charge for what they do give them a call 01606 839720

 

[denislawsbackheel]

DB schemes usually have an upper limit to index linking. I doubt there are many which go above 5% these days.
From 2030 the RPI link to DB schemes ends and they will use CPI-H instead. No prizes for guessing which is the lower measure.

Public sector pensions have been using CPI since 2011...
There is no limit to my teachers pension index linking.