Should i opt out of my works pension?

alove

Hi all,
I have been paying into my company pension since 2012 but have recently struggled with my money. I know I can opt out of the pension and then opt in at any point in the future but would opting out give me more money in my pay packet at the end of the month?

I already have 2 private pensions on the go but was looking at a short term solution to my money problems.

Thanks for any advice

JoeCrystal

Depend on what kind of pension it is and does the employer contribute anything into it?

capital0ne

How much does your company contribute to your pension?

Do they contribute to your private pensions?

How much in total do you contribute to all your pensions?

Answer those questions and we may be able to help.

alove

I work for my local council as a teacher so I presume they do contribute towards it.

Currently I have £135 stopped out of my salary per month and no they don't contribute towards my private pension

My private pension have been running for 23 years and I currently pay £60 into it plus I've been told I have SERPS pension which stopped in 2012 which is when I joined the company pension

JoeCrystal

If you are paying into LGPS or TPS then it is no brainer. To opt out of one of these schemes is far more costly then getting £135 before tax! Please do not opt out of these brilliant schemes.

Just to confirm, are you paying into one of these schemes I mentioned above?

alove

Its an LGPS

It would only be for a short while until I can get my current money problems sorted out and then opt back in at any point

PeacefulWaters

Don't mess with your LGPS pension. It'll cost you a lot more in retirement.

Your options are around cutting back on other expenses and maybe a reduction in your private pension contribution.

Silvertabby

Are you sure it's LGPS? Teachers are normally in TPS, but are paid by their Local Authority. What does it say on your payslip?

Whichever it is, do everything you can to avoid opting out - stop payments to your private plans first.

If you are LGPS, and you really are that desperate, then look at the 50:50 option. This means that you pay half contributions in return for half pension, but keep your death in service and ill health benefits.

Chapuys

Are you 100% sure it isn't the Teachers Pension Scheme? Teachers and lecturers who ordinarily work in the UK are automatically enrolled onto it when you start working as a teacher in a school. I didn't get a choice to continue my LGPS when I transfered from being a teaching assistant to being a teacher. It was just done. The council still deduct my teachers pension from my wage.

Either way, don't get rid of it or stop paying into it. Even for a short time, it can start to mess up your future finances. As has been posted, the death in service benefits are very good. I only realised this after I looked into it after the Manchester bombings. I would post on the debts board here and ask for support on where you can cut down.

alove

Its definitely LGPS - it states it on my payslip.

When i researched this I did see the option for the 50:50 option so may look at this

bigadaj

alove wrote: »

Its definitely LGPS - it states it on my payslip.

When i researched this I did see the option for the 50:50 option so may look at this

Posting full details on one of the debt boards would be a good start.


Stopping contributing to a public sector defined benefit scheme should be pretty much your last resort.


Suspending payments into your private pensions wouldn't be too bad an option, but posting a statement of affairs on the debt boards will allow people to see where you can save and potentially how much.


If you are disciplined then 0% credit cards can provide breathing space also.