Opting out lgps

xylophone

So not sure if the lgps. Offer is a better offer or not 

Do you understand that the PP is a Defined Contribution Pension which offers no guarantees as to what your pot will buy at retirement?

Your LGPS Defined Benefit pension offers you a guaranteed pension at retirement and index linked increases in payment.

Which is better?

QrizB

Matt_22 said:

So not sure if the lgps. Offer is a better offer or not 

It's a good offer, and it's guaranteed (unless the UK government defaults, in which case we'll all have bigger issues).

Keeping it with PP could result in a bigger pension when you retire, but it very well might not. And you won't know until you're in your 60s.

Matt_22

Thanks yes. I don't think I will be staying to the lgps long term though. 

Matt_22

QrizB said:

Matt_22 said:

So not sure if the lgps. Offer is a better offer or not 

It's a good offer, and it's guaranteed (unless the UK government defaults, in which case we'll all have bigger issues).

Keeping it with PP could result in a bigger pension when you retire, but it very well might not. And you won't know until you're in your 60s.

I may transfer if in
 And then I could start another peoples pension scheme if I change jobs

Matt_22

I think I will.take It as it edges my bets abit. As I have some savings in the stock market as.it is. 

hyubh

Matt_22 said:

Thanks yes. I don't think I will be staying to the lgps long term though. 

That won't affect the worth or otherwise of the transfer in however, since the additional LGPS pension bought (including the accompanying inflation proofing) is set at the point you transfer.

Matt_22

I thought the lgps offer would be more to be honest. There's is a good chance the money would be worth more in the peoples pension.  Value of stocks roughly double every 10 years. And I have 30 years till retirement. So could be worth 45k

Matt_22

I'd have to live over 28 years after my retirement age of 68 for the lgps to match it

Dazed_and_C0nfused

Matt_22 said:

I'd have to live over 28 years after my retirement age of 68 for the lgps to match it

You're not comparing like for like though.

When you reach normal pension for LGPS the money may have grown to £45k if left where it is but the LGPS pension would also be significantly more than £1580 from all the annual increases.

I suspect the vast majority of people reading this thread would take the LGPS option without hesitation.

Especially given you have plenty of time to build up additional DC funds if you wish.

I got the quote back for £13957 I have in the peoples pension. It would buy me a pension of £1580.89 annually

LoopySnooker

Matt_22 said:

I'd have to live over 28 years after my retirement age of 68 for the lgps to match it

Sorry but you clearly have no idea how the LGPS works and its value so I suggest you have another read of the info above from some very knowledgeable posters and reevaluate.