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Any advice appreciated, should it stay or go?

matthewking26
Posts: 143 Forumite

Hi,
I currently earn £17079 before tax each year. Each month I pay £85 into a local government final salary pension scheme, I've been doing this since I started the job in July.
I'm currently just under £15,000 in debt, paying out £446 a month in loan repayments, debt free date approximately March 2010.
I was wondering would I be better off cancelling the pension and sticking the money in a savings account to get debt free quicker and restarting the pension in 2 years when debt free?
Or is the security of a reasonably good pension for the future worth sticking with?
If I was to cancel it (or could it be put on hold with the payments already in?), how on earth would I go about doing that?
Have I given enough information to get an answer to this?
Any advice appreciated!
I currently earn £17079 before tax each year. Each month I pay £85 into a local government final salary pension scheme, I've been doing this since I started the job in July.
I'm currently just under £15,000 in debt, paying out £446 a month in loan repayments, debt free date approximately March 2010.
I was wondering would I be better off cancelling the pension and sticking the money in a savings account to get debt free quicker and restarting the pension in 2 years when debt free?
Or is the security of a reasonably good pension for the future worth sticking with?
If I was to cancel it (or could it be put on hold with the payments already in?), how on earth would I go about doing that?
Have I given enough information to get an answer to this?
Any advice appreciated!
0
Comments
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Or is the security of a reasonably good pension for the future worth sticking with?
What do you mean by reasonably good? You have one of the best pensions you can get. Any of us here would love to get the pension you have. Its a risk free goldmine.If I was to cancel it (or could it be put on hold with the payments already in?), how on earth would I go about doing that?
You cannot get your money back and if you exit you may not be able to get back in again. Your employer can refuse to allow you to rejoin.
You are only paying £85pm into it and thats gross. Its closer to £66 net if you were to leave the scheme. The two years of service you were to lose (assuming you were allowed to rejoin) are far more valuable to you then knocking a month or two off your 2 year plan to be out of debt.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I know someone who did what you are proposing - she was out of the scheme for three years and although she has now rejoined . she really regrets not having the three years in the scheme.
I only paid into the LGPS for ten years (because that is all I was eligible for) and although I have a reasonable pension awaiting me considering the time I paid in, I would be really glad if I could have another two years.
Don't leave your pension is MHO.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
I didn't realise it was that good! I don't know much about pensions, just the paperwork given out when I got the job sounded good. By the sounds of it I'm better off staying in, I didn't realise they could refuse me re-entry.
Thank you very much both of you as you've probably made a big difference to the outcome when I retire.0
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