Local government pensions, unions nd scaremongering

atush

From purely my point of view, I don't know if I can afford to contribute 9.5% of my salary.

from my point of view, you cannot Not afford it as the alternative is to opt out. then what will you retire on?

We don't know all your other personal details, such as you say you are the main breadwinner but we don't know if your OH can increase the amt of time they work, get a second job etc. And there could be ways to save or raise money that would bring you inline to be able to keep up your pension contributions.

You could get help by posting an SOA on the budgeting or Debt free boards (know you aren't in debt but they can be canny over there) and find ways to reduce your outgoings and cut back on luxuries etc. By luxuries I am not talking a cruise (but reducing holiday spend can help) but more reducung buying lunch out, fancy coffees, magazine subscriptions, do you or the OH smoke etc. I only recently joined Top Cash back and started selling off old stuff on Ebay. Between the two I have earned 75 quid that I would not have earned on money I would have spent anyway and things that were destined for the local tip/charity shop. I didn't neglect the charity shop though, as I have dropped off 10 bags of shoes and clothes this summer plus books etc.

I also earn 100s of quid a year selling my books on Amazon once I have finished reading them instead of putting them on bookshelves.

There has to be a way for you to afford to keep up your pension and I hope you find it.

Jessikita1983

atush wrote: »

what will you retire on?

Agreed. I do worry as husband is self employed and does not have any form of private pension. So I feel I will be the main bread winner for many years to come!

Thanks for all the money saving tips. We are fortunate in one way that I already had my house and could afford to pay for it all on my salary, so I view his contribution as "extra" which is immediately overpaid on the mortgage. Every spare penny we have we overpay.

I may be getting made redundant in April, and if I can't find an alternative job through redeployment at the council I will go back to private sector, I may have to take a huge salary reduction, so it would be good practise to get in even more money saving mode in preparation for then.

atush

How much do you have in cash savings? You need 6 months salary ideally.

And with redundancy looming I think you should stop overpaying the mtg for now(although I am a big overpay fan and do so) and start saving up now into instant access ISAs for both of you. It will count against you if you are forced onto benefits for a period, but will make life better for you.

Hopefully for you, you will escape redundancy and keep paying in.

Jessikita1983

atush wrote: »

How much do you have in cash savings? You need 6 months salary ideally.

And with redundancy looming I think you should stop overpaying the mtg for now(although I am a big overpay fan and do so) and start saving up now into instant access ISAs for both of you. It will count against you if you are forced onto benefits for a period, but will make life better for you.

Hopefully for you, you will escape redundancy and keep paying in. Thank you.

I only have £1000 in savings as I have been so focused on mortgage.

I am hoping to have a better idea of whether or not the service I work for is being cut by the need of Oct so I think in the short term I will stop overpaying from November payday and save the amount just incase. (overpaying £500 a month now, so will give us another £2500)

Fortunately I will not have to go on benefits. I have several things lined up if the worst happens. Catering through an agency, picking/packing at the place Mother in Law works at. Hubby, being a small business owner knows a lot of the others in the immediate vicinity, so I can work at the chippy (It's a large one with a restaurant attached to it, spoke to owner yesterday.) Father in Law is a builder and can get me some work labouring.

Not ideal as will all be minimum wage but will see us through until I can get a better job. (soon as I know whether I am going or not I will start looking and applying everywhere.)

atush

Keep that saving going until you have 6 months salary/spending saved before you go back to overpaying the mtg.

And good luck to you.

bilbo51

From the speakers' notes here: http://www.unison.org.uk/acrobat/B5682a.pdf

Relates to the PowerPoint presentation here: http://www.unison.org.uk/pensions/pop_activist.asp

... Anyone transferred to a private or third sector employer could be even worse off.

At the moment, transferred public service workers are covered by an agreement called the "Fair Deal on Pensions", which means their new employer must allow them to stay in the public sector pension scheme (if they are members of the LGPS and their new employer has "admitted body status"), or offer them a "comparable" pension scheme to save into.

But we understand this agreement is being reviewed, and if, as we fear, this right is removed, then transferred employees could be forced to accept pensions far worse than the public sector schemes.

My highlighting. I have no axe to grind on either side of this debate, apart from finding some of the vitriol distasteful to say the least, but I do find it interesting that UNISON recognises that private sector schemes are likely to be "far worse" than the revised public sector schemes.

CLAPTON

quite a strange thread really

the OP starts off asking for ''can someone point me in the direction of some unbiased information with regard to the proposed changes to the local government pension scheme''


very reasonable although somewhat spoit by the overall title of the thread ''Local government pensions, unions nd scaremongering '' which could be seen as being less that open minded and unbiased.

the OP then post links to union info that to me at least seems factual although the presentation does have a bias


then the OP pulls at my heart string by claiming poverty and probably can't afford the extra 3% '' From purely my point of view, I don't know if I can afford to contribute 9.5% of my salary. I accept for a lot my salary is high, but of course I have taken on a mortgage etc. I do not have any debts other than my mortgage, and a post 1998 pre 2006 student loan which they are rightly so deducting £113 a month. But I am the main breadwinner in my household.''

then the OP tells us she is only counting her own salary and not the OH which is spare ''We are fortunate in one way that I already had my house and could afford to pay for it all on my salary, so I view his contribution as "extra" which is immediately overpaid on the mortgage. Every spare penny we have we overpay.''

and then tells us ''' (overpaying £500 a month now, ''


well 3% of 29k is about £58 per month after tax relief


interesting

jem16

Jessikita1983 wrote: »

I will await the final decision and a letter from the LGPS when it is all told/said and done and consider my options from there.

I thought you had already decided, after help from this site, that it would be stupid to leave?

http://forums.moneysavingexpert.com/showpost.php?p=47515917&postcount=20

bilbo51

jem16 wrote: »

I thought you had already decided, after help from this site, that it would be stupid to leave?

http://forums.moneysavingexpert.com/showpost.php?p=47515917&postcount=20

I felt like reposting that too jem

Jessikita1983

CLAPTON wrote: »

quite a strange thread really

the OP starts off asking for ''can someone point me in the direction of some unbiased information with regard to the proposed changes to the local government pension scheme''


very reasonable although somewhat spoit by the overall title of the thread ''Local government pensions, unions nd scaremongering '' which could be seen as being less that open minded and unbiased.

the OP then post links to union info that to me at least seems factual although the presentation does have a bias


then the OP pulls at my heart string by claiming poverty and probably can't afford the extra 3% '' From purely my point of view, I don't know if I can afford to contribute 9.5% of my salary. I accept for a lot my salary is high, but of course I have taken on a mortgage etc. I do not have any debts other than my mortgage, and a post 1998 pre 2006 student loan which they are rightly so deducting £113 a month. But I am the main breadwinner in my household.''

then the OP tells us she is only counting her own salary and not the OH which is spare ''We are fortunate in one way that I already had my house and could afford to pay for it all on my salary, so I view his contribution as "extra" which is immediately overpaid on the mortgage. Every spare penny we have we overpay.''

and then tells us ''' (overpaying £500 a month now, ''


well 3% of 29k is about £58 per month after tax relief


interesting

I have never claimed poverty.