Opting out lgps

Matt_22

I am paying £40 a week in to the lgps. I am thinking of opting out. As is quiet alot of money
 Is it madness to opt out?

Keep_pedalling

Yes it is madness. 

Dazed_and_C0nfused

Keep_pedalling said:

Yes it is madness. 

+1.

Nothing has changed since your last thread. 

You would pay more tax for the privilege and be missing out on a huge part of your overall remuneration.

https://forums.moneysavingexpert.com/discussion/6472885/local-government-pension

pramsay13

Generally it is always better to pay into a pension, even more if you can, but just how mad it is will depend on your exact circumstances, of which you've shared very little.

33scott

The future you will look back and say that was the worst decision of my life.

QrizB

Matt_22 said:

I am paying £40 a week in to the lgps. I am thinking of opting out. As is quiet alot of money
 Is it madness to opt out?

Yes it's madness.

You're paying £2080 a year, which (if my sums are right) mean you're earning £32k pa and accruing £653 pa pension, CPI linked. Which is worth something like £10k to you.

theoretica

Do you expect to die before you retire?  Or to inherit a few million before you retire?  Or will you need to fund most of your own retirement?

Marcon

Matt_22 said:

I am paying £40 a week in to the lgps. I am thinking of opting out. As is quiet alot of money
 Is it madness to opt out?

Yes, it is quite a lot of money - but you get a fantastic pension in return.

sevenhills

Matt_22 said:

I am paying £40 a week in to the lgps. I am thinking of opting out. As is quiet alot of money
 Is it madness to opt out?

If you are paying £40 into your pension, your employer is paying in around £120, is that a lot of money to be missing out on?

JoeCrystal

Why do you ask these questions? Have your rather well-explained thread, "Local government pension" not highlighted why it is madness? It seems very clear that you do not appreciate it and do not think it is worth it. In that case, please opt-out to save your employer and their taxpayers some money. £40 a week is peanuts for what you get out of it.

dunstonh

Matt_22 said:

I am paying £40 a week in to the lgps. I am thinking of opting out. As is quiet alot of money
 Is it madness to opt out?

Probably up there with one of the worst financial decisions of your life.   Nothing will come even close to matching the benefits of LGPS.  It would be insanity.

However, if you decide to do it, I thank you as a taxpayer as I am sure all other tax payers would.