Bronwyn's pension

If Bronwyn takes her LGPS benefits at age 65
 
Bronwyn is confident she will get one more promotion prior to retiring which will increase her pay by 5% over and above any annual pay increase.
 
Bronwyn hopes to retire at age 65. She is aware that her LGPS 2015 pension will be actuarially reduced as she will be retiring 2 years before her new Normal Pension Age. However, she has planned to go at 65 for some time and does not wish to change those plans. Her protected pre-April 2015 pension is payable without a reduction at 65: 
 
Assumed Annual Pay*/Inflation Growth
1% 2.5% 4%
Final Salary Annual Pension (25 years) £5,056 £5,946 £6,976
LGPS 2015 Annual Pension (12 years)
£3,457 £3,749 £4,070
Total Annual Pension
£8,513
£9,695
£11,046
Comparison - if pension remained for 37 year as Final Salary Pension
£8,052 £9,470 £11,111
 
+/- Difference +£461 +£225 -£65
 *Plus increases due to a promotion as stated above

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