Advice needed on Local Government Pension v Stakeholder

matty17r

Hi All,

About 4 years ago my father took out a stakeholder pension as he had already had his fingers already badly burnt in a private company pension when all the funds disappeared when the company went bust. However, my father works for local government. Should he have chosen this pension scheme rather than the stakeholder?

Any advice greatly appreciated

Thanks,

Matt

jem16

If it's the LGPS that he can join, then yes he is better off in this, It's a final salary scheme and is all based on years of service and not investment returns.

Miss_Penny_Pincher_2

I am in LGPS but with way things are going was considering making myself more secure by also getting a stakeholder pension too but heard that it's only open to people who do not have a pension through work. Does anyone know if it's possible and what is your view on it?

jem16

The LGPS is one of the best final salary schemes around and you won't get more secure than that. It's government backed and even with the changes you would be daft not to go/stay with it.

You can have a personal/stakeholder pension as well as the occupational pension. However you would need to contribute around 24% to be anywhere near what you would get with the LGPS.

Andy_L

Miss_Penny_Pincher wrote: »

I am in LGPS but with way things are going was considering making myself more secure by also getting a stakeholder pension too but heard that it's only open to people who do not have a pension through work. Does anyone know if it's possible and what is your view on it?

You have been given outdated info. You can (now) have a stakeholder (or personal pension/SIPP) as well as an occupational scheme.

By having extra pension you are likely to be top-heavy in pension income though. Have a look at the "pension vs ISA" thread