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Opting out lgps
Matt_22
Posts: 323 Forumite
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?
Is it madness to opt out?
0
Comments
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Yes it is madness.13
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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-pension3 -
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.1
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The future you will look back and say that was the worst decision of my life.9
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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.N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill Coop member.Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!
2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 34 MWh generated, long-term average 2.6 Os.1 -
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?
But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll1 -
Yes, it is quite a lot of money - but you get a fantastic pension in return.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?Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
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?
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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.
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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.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?
However, if you decide to do it, I thank you as a taxpayer as I am sure all other tax payers would.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.5
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