Need help understanding a pension

A question about : Need help understanding a pension

Hi, I was hoping someone could help me understand my new, first and only pension.
So I start a new job tomorrow! And I've been auto-enrolled into a Local government pension scheme.
I totally am into money saving and stuff, but a pension is something I don't understand.

I am considering opting-out. But think it's hasty I opt out without any knowledge of a pension.
So I have 40-50 years to work until I reach retirement.

Does my employer pay into this pension?
What happens if I leave?
What happens if I later decide to opt out (in over 3 months time), if I can't afford to pay into the pension?
I'm assuming my pension contribution gets deducted before I pay tax and NI on it??

Could somebody please give me brief details about the pension.

ETA: On retirement, could I still get a state pension in addition to this one?
And is a state pension on it's own not good enough?

Best answers:

• First of all, your comment
  Quote:
• Thank you all for your replies. All have been helpful, and I am taking it on board. I have decided not to opt-out. Through a bit of research, I've also found that, should the need arise, I have the option to only pay half of my 'normal' contributions.
  Saying that, if I don't start paying into the pension now, then I never will. Eventhough my retirement is far away, and it's hard to see the necessity of it. I should, for once, listen to others!!
  Another part of me is thinking, should I save for a house deposit first and foremost, or save for house deposit and make contribution into a pension.
• Good on you for going into a pension this early - it'll stand you in good stead in the decades to come.
• LGPS is no longer a final salary pension (post April 2014). It is now CARE (career average). The option to pay 50% pension is a new one that has just come in.
  The percentage you pay depends on salary and has just changed (depending on salary level): https://www.lgps2014.org/content/what...scheme-cost-me
  There is a lot of info on the new scheme on the LGPS website including video clips. Here is a pension calculator:
  https://lgps2014.org/content/lgps-201..._utmk=67214737
  The thing to remember about pensions is that the earlier you start contributing the better, especially with the public sector schemes. I was very fortunate to have started contributing many years ago as a young teacher. I knew nothing about pensions and would have preferred the cash too. Unlike some colleagues I contributed, for which I am now very grateful as I approach retirement age.
• In a nutshell, you would be silly to opt out or even go for 50% option. Dunstonh has hit the nail right on the head and if Ј155 per week is enough (state pension) then by all means opt out of one of the best pension schemes in the UK. This is because it is based on years of service and your salary, rather than investment performance, annuity rates etc which are all largely unpredictable.
  I also echo what Ricky has said in that you live within your means. Believe me when I say that you won't notice it after a few months and with a blink of an eye, 5 years will have passed and you will be glad you've paid into it.
  Join it and work with the remainder of your income to save for your house