Did you know that as a member of the Local Government Pension Scheme (LGPS) your employer pays towards the cost of your retirement benefits. Each time that you get paid your employer pays a substantial amount into the LGPS, significantly more than you do.
Remember that in the LGPS your benefits are guaranteed, unlike the benefits from a personal pension plan (where a bad spell of investment returns could wipe out years’ worth of benefits).
You should consider taking independent financial advice if are thinking of joining a personal pension plan.
Key features
- Pensions in payment rise with the cost of living.
- If you are a taxpayer you get tax relief on all your contributions – even on extra payments you make to top up your benefits.
- Life cover of 3 times your pay from the day you join the scheme and there’s no medical (unlike other forms of life insurance).
- You choose when you want to retire; you can take your benefits anytime from age 55 to age 75. (The Government has announced the earliest age that you can take your pension will increase from age 55 to 57 from 6 April 2028).
- You can exchange part of your pension for a tax free cash lump sum at retirement.
- Protection in case you have to retire early through ill health.
- Dependants benefits are payable if you die, meaning your pension doesn’t die with you (see the brief guide to the LGPS for further details).
- No hidden management fees or charges, you simply contribute a percentage of your salary.