Some people have no idea how lucky they are LGPS

I am fortunate to be in the LGPS and know how lucky I am. I have made the most of it and bought extra years and paying into the connected AVC for my lump sum. 

I work with a mixture of people like me in the LGPS as well as Police Officer colleagues 

The other day I overheard 2 colleagues talking. One is in the LGPS and the other is in the Police Pension that has also changed to a CARE scheme 

They were both moaning to each other about how crap their pensions were. The police colleague was saying that she has now come out of the pension and won’t pay into it anymore because it’s so bad 

The LGPS colleague was saying how brilliant her husbands pension is. 
Her husband’s pension is a work based  DC pension.  My own husband has a work place DC pension and even though I earn half of what he does , my pension is going to be worth a massive amount more than his 

She’s looking at the total pot of her husbands pension when he retires. Very probably under £200,000 not fully understanding that that will have to last the rest of his life and not taking into account inflation 

She then moans to her police colleague that her pension is forecast to pay out around £20,000 pa but will only give her around £10,000 lump sum

The lack of understanding amongst a lot of my colleagues about how good their pension scheme is baffles me and it’s so easy to research it and realise just how good it is 


  • RobM99RobM99 Forumite
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    Some people want to pay in £5 a week and get £400 a week out!
    Watching the £Pound collapse! Pass the Dollar, Euro, Dong.
  • Dazed_and_C0nfusedDazed_and_C0nfused Forumite
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    RobM99 said:
    Some people want to pay in £5 a week and get £400 a week out!
    Voluntary Class 2 National Insurance isn't a million miles away from that!

    £3.15/week for ~£200 from April 2023 😀
  • saucersaucer Forumite
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    I think it speaks of people's very poor ability to do basic maths.  They don't understand the pension, and when they retire they take the biggest lump sum they can. 
  • edited 22 September at 10:06PM
    ewasteewaste Forumite
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    edited 22 September at 10:06PM
    That isn't unusual, we see it all the time on this forum with people wanting to opt out or transfer out. Generally speaking financial education and knowledge is often lacking especially anything that needs planning. However when it comes to pensions it's just completely absent and most don't even take a few hours to learn the basics of their own workplace pension. 

    I often find the same thing, older employees still think along the lines of income but bemoan the seeming loss of a 'pot'. Therefore many intend to take the largest lump sum they possibly can despite poor commutation rates. The sense of entitlement is also extremely strong as many don't realise they've paid a fraction of the cost of accrued benefits. Younger ones tend to think that mum and dad or older colleagues in a similar role retired on a decent pension so they'll be ok. However don't have any DB provision and are on T's and C's at or marginally above the legal minimum. 

    The wholesale change to employer DC schemes, end of S2P/SERPS and inadequate auto-enrolment will be storing up issues for the future. 
  • GrumpyDilGrumpyDil Forumite
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    Yup. My wife is in the teacher's pension scheme. I'm in a work based DC scheme with a 23% employer contribution rate due to my age. 

    Sounds a lot but I would still prefer the certainty of the teacher's scheme.

    That said my children (both still in education) have both been told if they are ever offered membership of a work based scheme do not opt out. 
  • xylophonexylophone Forumite
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    When will the wave of complaints that "It shouldn't have been allowed" start?
  • El_TorroEl_Torro Forumite
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    A friend of mine has been working for various different councils for the last 15 years. About 5 years ago he told me that he never joined the pension scheme because he gets the impression that it’s simply not worth it. This is a guy who takes time to research global economic trends, as well as taking care where to invest his money (not just stick it in cash). I guess it just shows that some people just can’t get their head around a good thing when they see one.

    Anyway about two years ago he did finally join the pension scheme, at least in part due to me regularly badgering him about it. I still don’t think he understands the favour I’ve done him. Maybe we can discuss it when we’re both retired and sipping Mojitos on the beach. 
  • alibean121alibean121 Forumite
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    My mum always used to complain about her teachers pension and how much she had to pay in. At least she did always pay and is now happily retired on it.

    Some people are just bloody idiots though. My current job offers non-contributory 10% pension but you need to sign up for it. Several of my colleagues just haven’t signed the form and instead have been put on auto enrolment and get 3%. Literally why.
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