LGPS - additional contributions

meat_n2_reg

Hello

Given that I have enough saved , looking at paying additional salary sacrifice  into my LGPS pension

Have read up via LGPS site https://www.lgpsmember.org/arm/already-member-extra.php 

Ideally want to pay an addional £100 into my pension a week , as this will not be taxable , not sure if employer with contribute anything to the addtional contribution ?

Not really fully sure what the difference are between Additional Pension Contributions (APCs) and Addtional Voluntary Contributions (AVCs) but believe what I need to do is the Additional Pension Contributions (APC's) , which will then take me out of paying any tax ( only work part time £13.5k) and hoping to retire in approx 5 years time

Any help greatly appreciated

Regards Steve

Silvertabby

In house AVC contributions are also taken from your salary before tax.

How old are you?  APCs are a good deal if you intend to carry on working until your normal retirement age (same as your State pension age) but not so good if you want to retire at 55, due to the early payment reductions.  Your employer may, if they wish, contribute to your APCs - but let's just say that hens, teeth and rare spring to mind.

AVCs are a pot of money accrued with your LGPS AVC partner.  Very often the Prudential, but could be one of the other usual suspects.  AVCs are popular with those who want to maximise their tax free cash at retirement - but the fund (all or just some) can also be used to buy extra pension in the LGPS. 

meat_n2_reg

Many thanks for your reply
I'm 50 and was thinking of retirement at 55 , however have enough savings not to draw pension till 60

Regards

Silvertabby

Then any APCs you buy will be reduced by up to 30% for early payment.