LGPS - Advise

rizel23

Hi all, i'm moveing over to the local council (warwickshire) and the the HR has reccomended i join the pension scheme.

I will earn roughly £15.500 per year, i need to contribue 5.9% of my wage and they contribute 11%?

could some kind person shed some light on if its worth it? I'm 28 nearly and never had pension or even looked into it before, thanks

dunstonh

could some kind person shed some light on if its worth it?

You pay 5.9% gross which means you pay is reduced by 4.7% (as you get tax relief). The employer adds 11%.

Its free money from the employer if you join. Nothing else will come close. You would be daft not to join. Especially at you age. 28 maybe young but you have already missed out on many years of potential provision and are starting to enter the period when you are looking at needing to catch up let alone pay a normal amount.

CLAPTON

as absolute no brainer... join

rizel23

thanks,

say of £1250.00 rough take home gross pay per month i contribute 5.9% of wage towards pension (£73.75) and the council contribute an additional 11% (£137.5) is that right or have i worked it out wrong? thanks

dunstonh

say of £1250.00 rough take home gross pay per month i contribute 5.9% of wage towards pension (£73.75) and the council contribute an additional 11% (£137.5) is that right or have i worked it out wrong? thanks

Take home pay means net pay. Not gross. i.e. what you take home after deductions. Gross is what you get paid before deductions.

73.75 would be 5.9% gross on your gross pay but your take home pay will be reduced by £59 due to tax relief. So, for every £59 you pay, £213.25 is being paid into the pension. Hence why it often referred to as "free money" and why nothing else will beat it.

Loughton_Monkey

I can only underline the comments above that you simply must join this scheme. Even if you find it difficult to live on £59 less. If you decide not to join, I am 99% certain you would regret it in a big way later in life.

rizel23

thank you, that (to me) sounds like a no brainer! I shall definantly join up!