Opting out lgps

Matt_22

What does that mean sorry?

Matt_22

Thanks I read the link

Matt_22

Even when you draw your lgps pension. It still increases every year with inflation. A private annuity wouldn't do this?

QrizB

Matt_22 said:

Even when you draw your lgps pension. It still increases every year with inflation. A private annuity wouldn't do this?

Some annuities do, some don't. In very general terms, when choosing an annuity you can:

• Have a fixed annuity, that pays out the same amount every year
• Have an annuity with a pre-determind increase every year, eg. 3%.
• Have an index-linked annuity that rises with inflation.
  

You'll see examples of all of these on HL's best buy list.

Matt_22

Thanks lgps is inflation linked? 

LoopySnooker

Surely OP has to be a troll.

Matt_22

No I just knew nothing about pensions before I took this job with the lgps. Just trying to get my head around it. Hence why I was checking annuity costs etc

swindiff

You are asking a lot of questions which could easily be answered by doing a simple Google search. Hence the troll comment.
Type into Google is lgps inflation linked.
You will get your answer a lot quicker than posting it here.

LoopySnooker

I just can’t believe someone genuine would keep dithering around and continue asking silly questions when people have already highlighted the reasons why transferring would be the sensible thing do.

QrizB

Matt_22 said:

Thanks lgps is inflation linked? 

Yes, as you said above:

Matt_22 said:

Even when you draw your lgps pension. It still increases every year with inflation.

And as we said on page 1 of this thread:

QrizB said:

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.

and on page 3 of your previous thread:

Timbosaurus said:

Matt_22 said:

If one worked for a company that offered LGPS for 49 years. They would receive a pension of there full average salary?

They'd probably receive more.  Each contribution year would rise by CPI forever, whereas wage growth in local government has been eroding against inflation for decades.  Your pension would quite probably be higher than your final salary, assuming you stayed in the same band/role for your whole career.

I realise that:

Matt_22 said:

No I just knew nothing about pensions before I took this job with the lgps. Just trying to get my head around it. Hence why I was checking annuity costs etc

... but most of this is explained, in detail, on the LGPS website:
https://www.lgpsmember.org/

(I'm assuming that's an official site, please someone correct me if I'm wrong.)