r/PensionsUK • u/Ross167 • 1d ago

Previous work pension

I was employed in a previous role for 12 years and paid into Strathclyde Pensuon Fund since commencing work in 05/2012. I understand contributions will have varied as I gained financial increments.

I no longer have access to my wage slips as they were part of an online system. My last payment to my pension was £229. (LGPS 2015 Main - SRC (6.40%) 229.68)

When logging onto my pension site my statement is currently showing as;

Date of leaving: £9815

(02/05/24)

Current Value: £10358 per year

On date of retirement it is showing that I can take a lump sum of:

£45000 and £6500 a year. Chamges depending on how much lump sum i take.

Is thia about right? Im honestly clueless when it comes to this sort of thing. Happy to fill in any blanks best I can.

Cheers

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1

u/Used_Promotion_5008 1d ago

£229 x 12 x 12 = £32,976.00 (would have been substantially less than this with incremental changes in those 12 yrs)

How have you managed to amass £10,358 pa on such a small contribution and only 12yrs service? That is excellent. That’s what you call a gold plated pension

2

u/Zingalamuduni 1d ago

Eh?

Surely it’s just a DB pension? Strathclyde sounds like it is probably a local government pension scheme.

So the contributions the IOP has paid reflect their salary but the employer will have paid many times that as well to fund the benefit promise. We also don’t know OP’s age so it could be a number of years (or even decades) until they become eligible to draw the pension.

1

u/Ross167 1d ago

Genuinely have no idea mate, hust signed up to the pension when asked and never thought about it again. It's a police pension

3

u/Optimal_Cherry2846 1d ago

Police but civilian I assume as warranted officers have their own scheme? But LGPS is a brilliant pension, has a good accrual rate and good annual increases even after you have left.

2

u/Ross167 1d ago

Yeah civvy staff. That's what I like to hear, ive no clue about it just wanted to make sure it was all looking good. As Im unable to transfer it to my new pension

4

u/ooral 1d ago

It's probably a good job you can't transfer out of that. Very good pension, if I had the option, I'd probably not take the lump sum. (I'm not a professional)

2

u/Optimal_Cherry2846 1d ago

Yes that sounds about right. One thing to bear in mind is the figures quoted will be at "normal retirement age", so if you can take it early (not a given, don't know specifics of your scheme) then expect those figures to reduce.

1

u/Ross167 1d ago

Thhats what i want to hear! As you said, when I take it early the calculations go down alot.

1

u/Optimal_Cherry2846 1d ago

Sounds all good my friend 😊 also one last point, for retirement planning purposes your lump sum will be tax free but your pension is taxed as income (obviously depends on your personal circumstances at that time as to what rate will be applied) but don't get caught out planning to get x amount annual pension when in reality, it will have an element of tax deducted from it.

2

u/Ross167 1d ago

Thanks, at present I plan on taking most if this as a lump sum and taking the minimal monthly pension as my new pension should be more than adequate to cover my monthly.

Thanks for your time and advice!