Pensions query.

Ricky_Roma

Hello there.

I have been married for nearly 17 years and both my wife and I work for local gov with a ( for the moment) final salary pension scheme with no plans to change as we are both 51 years of age.

We had a financial revue just last year and with life assurances, insurance cover etc we are pretty well set up.....if we last out.

We set up a Wealth Plan ( personal pension) for me , at the time the smaller earner, with a small company that has changed hands a couple of times.

The upshot is we feel that the amount - £40 per month at the moment- could be going somewhere else rather that towards a PP that will not be all that significant when the retirement date in the policy swings round.

At the moment there is over £6000 in the pension.

I am looking for some advive before I contact the company to stop the payments.

Thanks in advance.

RR

XRS

Assuming you are in the LGPS you should be considering either AVCs (which will receive tax relief automatically at your highest rate) or (until 31st March) buying additional service in the LGPS. The way the LGPS works with its AVCs means that you can potentially take all of the value of the AVC as a cash lump sum (in addition to the lump sum you will have accumulated under the old LGPS).

I suggest you talk to your employer's pension expert, but I would prefer an AVC to an outside PP any day.