Police Pension- Stay or Withdraw?

NoMore

Absolutely the dumbest financial mistake you could make.

Getting_greyer

I'd stay in.  Or if you want both, leave police and join army as Military police.  Get your first stripe after trade training.

0% contributions for a pension that accrues at 1/47 of pay.  Also, after 6 months can receive 50% of salary for a house deposit to be paid 0% interest over 10 years. Do 20 years to receive the early departure payment which is 34% of deferred pension pa plus 2.25 × lump sum.  You then rejoin police and do another 15+ years getting another safe as houses pension.

draiggoch

Might be an idea to look at the shared equity housing offers from housing associations. Will probably cost something similar to your rent. Will be a better option than no longer paying in to the pension scheme. Could even rent a room out then.

Marcon

I too am joining the chorus of 'please don't leave the scheme', but let me add another reason, although I hope you'll never need it. 

Thank you for doing the job you're doing - which is often both thankless and dangerous. If you are injured in the line of duty, mentally or physically, and can't return to work, the ill health provisions of the scheme are, absolutely rightly, exceptionally generous. So too are the provisions for your dependants if you die or are seriously injured during your service.

I hope all you'll ever need from the scheme is the comfortable retirement it will provide. 

retiringtoosoon

Says a lot about the state of our police force really…

jimi_man

retiringtoosoon said:

Says a lot about the state of our police force really…

In what way?

UrbanAchiever

Please leave the scheme.  It's a gold plated pension that costs tax payers a fortune.  Be good to reduce the burden on the rest of us. 😁

Silvertabby

retiringtoosoon said:

Says a lot about the state of our police force really…

It's not just a police thing. It's simply a lack of understanding how these pensions work.  There have been similar questions on these boards from members of the NHS, Civil Service and LGPS.

Back in my LGPS days members who wanted to opt out would have to ring us to request the necessary forms.  Bearing in mind that we weren't allowed to give actual advice, we would just point out all the benefits they would be giving up - not only a pension in retirement, but also extremely valuable ill health and death benefits.

Sadly, by the time they spoke to us most had already 'spent' their extra money and wouldn't reconsider.

NannaH

My Daughter pays a similar % into the Teachers pension,  not only does she save on tax/NI,  which brings her contributions down to 7% ish - it takes her below the high earner limit cut off for Child benefit - it’s literally the best investment she will ever make.   She pays £5k a year, her employers  add  £11500!  Presumably the Police are similarly generous. 

You will never forgive yourself if you do this and you would have a huge shortfall to try and make up later on.  

kipsterno1

Do not leave the scheme. It may seem like a lot of money now but (despite the changes in 2015) is still head and shoulders above most other pension schemes. Along with everything that has already been pointed out the scheme does not only cover your retirement on age but also provides for injury retirement and for your NOK a death in service benefit.