CARE pension APCs

Baalmaiden

My husband is 61 and has worked for local government for 2 years in a low paid role. However he does get a CARE pension and the option of buying APCs. Is it worth investing as much as he can in these in the 4 years left till he retires? Or is it better to invest in an ISA?

Silvertabby

His State pension age will be 66 - is that when he intends to retire?

If so, then it's worth asking for an APC quote just to have a look at - but do bear in mind that the payments will seem to be very high because your husband will be paying the equivalent of his employer's contributions as well as his own.

If he does intend to finish at 65, however, then both his CARE pension and the APC would be reduced for early payment. Something to take into account whatever you decide to do.

xylophone

You say that your husband is on a low income - does he earn enough to pay tax?

Have you both obtained state pension statements?

https://www.gov.uk/check-state-pension

Baalmaiden

Thanks for the replies - we both should get full state pension and intend to take our pensions at 66. He does pay tax but not much.

Baalmaiden

I must say it seems very complicated to me how they calculate the total value of benefits. I know you add a portion of your salary each year, but do the APCs get added to the total or are they adjusted for inflation etc. And is the total value of the benefits the amount that gets multiplied by 49% when they calculate your pension?

Silvertabby

The CARE pension is 1/49th of your pensionable salary plus cost of living increase per year.

The APC is calculated differently.

Baalmaiden

Thank you for your replies. I think we will ring up ask for a quote and get the pensiond dept to explain how it all works.

chiefie

https://www.lgpsmember.org/more/apc/index.php

This link is the lgps PAC calculator. You can try it out to see before you ring :money: