Peoples pension VS LGPS

kyyla

Hi there, please could someone give me some advice about pensions?

I have a small pension from my last job which is with the People's Pension scheme. I am just about to change jobs and my new employer uses the LGPS scheme. I think I might be able to transfer my existing pension from People's into LGPS, but also I could opt out of LGPS and keep paying into the People's pension. I have done a bit of reading about both and can't seem to work out which is the better scheme to be in. Please does anyone have any advice?I am 32 years old.

Thank you

hyubh

kyyla wrote: »

I think I might be able to transfer my existing pension from People's into LGPS,

That will typically be possible, yes (at least at some point it was an administering authority discretion to allow so-called 'non-Club' transfers in, but the default is to allow). Once you join, definitely get a transfer-in quotation, though expect the LGPS pension credit to be small.

I could opt out of LGPS and keep paying into the People's pension.

Even if continuing to pay into the People's Pension were possible, you wouldn't want to opt out of the LGPS.

I have done a bit of reading about both and can't seem to work out which is the better scheme to be in.

LGPS without a shadow of a doubt. The People's Pension scheme is a DC arrangement primarily for small employers who previously didn't operate a pension scheme of their own, but now need to due to auto-enrolment legislation. The LGPS, in contrast, is a large DB scheme primarily for public sector employers who have always participated in it. If you're below middle management level, the value of the pension earned for the same amount of contribution will be way above, albeit with less flexibility (LGPS contribution rates are tiered, and skewed in favour of the lower paid).

Acquinas

LGPS has lots going for it. As others have said, it's a DB based on average earnings. But don't neglect the non-core elements. For instance, you have death benefit cover of 3 x salary as soon as you join. That is certainly one of the factors that keeps me working!

atush

LGPS w/o a shadow of doubt. Join today.

dunstonh

Peoples pension VS LGPS

Not even comparable. LGPS by a country mile.

but also I could opt out of LGPS and keep paying into the People's pension.

Do not even consider doing that. A crazy decision which would probably be the worst financial decision of your life.

daveyjp

Opt out of LGPS and no employee contribution.

atush

Dont you mean employer contribution?

AnotherJoe

kyyla wrote: »

Hi there, please could someone give me some advice about pensions?

I have a small pension from my last job which is with the People's Pension scheme. I am just about to change jobs and my new employer uses the LGPS scheme. I think I might be able to transfer my existing pension from People's into LGPS, but also I could opt out of LGPS and keep paying into the People's pension. I have done a bit of reading about both and can't seem to work out which is the better scheme to be in. Please does anyone have any advice?I am 32 years old.

Thank you

Then you haven't done enough reading, it's not even close. LGPS by a country mile