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Paying extra into my pension
Chrisca50
Posts: 1,724 Forumite
I've had a local authority pension since 2012. I am now in a position to add more into it monthly. I am due to retire in 9 years. Am I better off putting extra money in to my savings or paying more monthly into my pension please?
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Comments
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You don't say what sort of savings you have or the timeframe in which you'd like to access any extra savings, so it depends what you want to achieve. If you might need cash in a shorter timeframe than 9 years, then paying more into your pension isn't going to fit the bill. On the other hand if you want tax relief on your contributions, then your pension looks a better fit. If you can't decide, then maybe some into your pension and some into your savings?Chrisca50 said:I've had a local authority pension since 2012. I am now in a position to add more into it monthly. I am due to retire in 9 years. Am I better off putting extra money in to my savings or paying more monthly into my pension please?Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
Or maybe into a SIPP which you could (depending on your age) be able to access earlier than your pension or use to boost your pension in the short term before state pension age.
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If we assume your current local authority pension is a Defined Benefit scheme, then there will be specific scheme rules as to what you might gain from adding more contributions, if adding more is allowed at all.
Otherwise as per the previous post, you could open a new Defined Contribution pension and build up a separate pot of money for later .
This general explanation may help.
Pension basics | Help with pension basics | MoneyHelper
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Thanks for these suggestions
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Are you in the Local Government Pension Scheme?Chrisca50 said:I've had a local authority pension since 2012.
Have you thought about additional voluntary contributions?Chrisca50 said:I've had a local authority pension since 2012. I am now in a position to add more into it monthly. I am due to retire in 9 years. Am I better off putting extra money in to my savings or paying more monthly into my pension please?
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