Pension vs house deposit?!

discoball

I've just started a new job and have begun to pay in to a local government pension scheme (this will be my 4th year of paying into pension schemes, both teaching and local government). Given that I will be wanting to get onto the property ladder in the next couple of years years would it make more sense to withdraw from the pension scheme and put that money towards a deposit instead?

Any thoughts welcome, thank you :j

jem16

You should really be doing both. The LGPS is one of the best around and you would regret those missing years later.

dunstonh

would it make more sense to withdraw from the pension scheme and put that money towards a deposit instead?

You cannot withdraw the funds from the pension. You can only stop paying into it.

However, as Jem says, the LGPS scheme is excellent and doesnt cost much anyway. Plus, if you do cease to be a member, you wont find your pay increases by the amount of your contribution as your tax and NI will go up.
Plus, I think you lose the death in service benefits as well if you cease to be a member.

<cruel to be kind mode on>

If you really cannot afford a very small pension contribution then you cannot afford to buy a house. It shouldnt be a choice of either/or. It should be both.

<cruel to be kind mode off>