Pension Thoughts After Redundancy

Signal

Hi All,
I am currently employed by a council and contribute to the LGPS.
A couple of months ago i was made redundant which reduced my working week from 5 days to 3 days per week.
My contributions to the my LGPS pension fund have now been reduced in line with my salary and I was wondering should I consider AVC's or APC's as way of boosting my pension for when I officially retire in 2026, I have been told by the pension fund staff that APC's and AVC's are not that beneficial as the employer does not contribute to them.

Or should I just save in a interest bearing account until retirement?

Thank You for any advice

Linton

If you pay into AVCs you can take some or all of your DB pension lump sum from the AVC rather than from a reduction in the DB pension. This could mean that you get all of the AVC tax free. So AVCs in your circumstances would seem very beneficial.

AlanP_2

Employer doesn't contribute to either but the tax man does remember (assuming the contribution leaves enough taxable pay to be liable for income tax) so not to be ruled out entirely.

My wife and I use our LGPS AVC option as a way of minimising tax and to build a tax free lump sum.

cloud_dog

Signal wrote: »

Hi All,
I am currently employed by a council and contribute to the LGPS.
A couple of months ago i was made redundant which reduced my working week from 5 days to 3 days per week.
My contributions to the my LGPS pension fund have now been reduced in line with my salary and I was wondering should I consider AVC's or APC's as way of boosting my pension for when I officially retire in 2026, I have been told by the pension fund staff that APC's and AVC's are not that beneficial as the employer does not contribute to them.

Or should I just save in a interest bearing account until retirement?

Thank You for any advice

What is your revised salary, i.e. will you pay tax, or is your salary now below the personal tax allowance (£12500 this FY)?