Opting out of my pension scheme

madeinireland_2

As I am in possession of pensions (a DB one and a DC one) that will amount to being worth about £1.1m by the time I take the DB scheme I am planning to (if it's a option) take protection before the end of this financial year. When I do that I think I am right in that I would have to opt out of my pension to stop all future contributions.

Is that the best course of action for me ? I know I could take the pension a bit earlier but I don't really want to do that as it will reduce the Cpi linked amount I would get. Also the DB scheme is vastly greater than the DC scheme so I can't really just wait for a dip in the market as some may suggest.

Finally I worried about the effect of opting out on any potential voluntary redundancy payment - from time to time the company offers one and ideally I would get one in March next year but if I don't is the amount they offer likely to reduce if I am not a member of the DB scheme and would they be less inclined to accept me as a volunteer ?
Any views ? - thanks

marlot

Read up on individual protection. If it's like last time, you can lock in protection at your current pot size, but stay a pension contributor.

madeinireland_2

Unfortunately current pension size will be less than £1m - it will grow at a fairly fast rate as a result of deferment. I am aiming to defer for about 4 years maybe 5.

xylophone

https://www.moneyadviceservice.org.uk/en/articles/the-lifetime-allowance-for-pension-savings

madeinireland_2

Unfortunately I don't think individual protection will apply as my benefit will not exceed £1m by next April. It would have to be fixed protection I think.