Susan's pension

If Susan retires and takes her LGPS benefits at age 65
 
Susan is confident that she will receive two more promotions before she retires both of 20% over and above her assumed pay growth.
 
Susan’s State Pension Age will be 66, so if she retires at 65 (her protected pre-2015 Normal Pension Age) her LGPS 2015 pension will be reduced by 5%:
 
Assumed Annual Pay/Inflation Growth*
1% 2.5% 4%
Final Salary Annual Pension (20 years) £20,927 £23,897 £27,235
LGPS 2015 Annual Pension (10 years)
£12,292 £13,197 £14,180
Total Annual Pension
£33,219
£37,094
£41,415
Comparison - if pension remained for 30 year as Final Salary Pension
£33,611 £38,379 £43,741
 
+/- Difference (Total Annual Pension) -£392 -£1,285 -£2,326
 
 
If Susan retires and takes her LGPS benefits at age 66
 
If, however, she continues in work until 66 (her LGPS 2015 Normal Pension Age) her pre-2015 pension will be actuarially increased:
 
Assumed Annual Pay/Inflation Growth*
1% 2.5% 4%
Final Salary Annual Pension (20 years)** £22,215 £25,743 £29,768
LGPS 2015 Annual Pension (11 years)
£14,831 £16,057 £17,402
Total Annual Pension
£37,046
£41,800
£47,170
Comparison - if pension remained for 31 year Final Salary Pension**
£37,024 £42,905 £49,614
 
+/- Difference (Total Annual Pension) +£22 -£1,105 -£2,444
 *Plus increases due to promotions as stated above
**As these benefits are shown at age 66 (1 year after the protected NPA of 65) they include a 5.11% enhancement