Deferred LGPS FS pension to fund SIPP (or similar)?
Discussion
No, not recycling (I hope), but using the taxed monthly income realised from taking a deferred final salary LGPS pension into payment before normal retirement age to fund a private pension.
The deferred pot sits there happily enough being adjusted to reflect inflation but I cannot add contribs or actively manage it (perhaps a good job) - so wondering if I prematurely take it into payment, obviously banking on living long enough to compensate for the reduced payment rate that would result, whether the taxed pension income could go straight into a new SIPP or some better wrapper with 'usual' tax relief?
Automatic tax free lump sum would be used for something else so no recycling there.
Marginal rate 40% payer on current post local govt employment - if not permissible then obviously makes better sense to keep it deferred until I need the income but looking to maximise bang for a modest buck.
Thanks for any pointers.
The deferred pot sits there happily enough being adjusted to reflect inflation but I cannot add contribs or actively manage it (perhaps a good job) - so wondering if I prematurely take it into payment, obviously banking on living long enough to compensate for the reduced payment rate that would result, whether the taxed pension income could go straight into a new SIPP or some better wrapper with 'usual' tax relief?
Automatic tax free lump sum would be used for something else so no recycling there.
Marginal rate 40% payer on current post local govt employment - if not permissible then obviously makes better sense to keep it deferred until I need the income but looking to maximise bang for a modest buck.
Thanks for any pointers.
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