A question about : Trying to get my head around the new government pension
Hi I'm really struggling with the new pension scheme, using Susan from this website as an example would I be right in saying
https://www.lgps2014.org/content/how-...-be-worked-out
If Susan pays into the new auto-enrolment pension at her full rate for ten years then every year after retirement she will receive (based on today's figures)
Ј144 per week (basic state pension) -tax free
Ј96 per week (Ј5000/52 auto-enrolment pension) -taxable
Whatever weekly amount she manages to get from her old SERPS and private/work pensions -taxable
Is that right because it sounds much too generous to be realistic to me because if you were to extrapolate to the full 35 years she would be getting
Ј144 per week (basic state pension) -tax free
Ј336 per week (Ј17500/52 auto-enrolment pension) -taxable
Whatever weekly amount she manages to get from her old SERPS and private/work pensions -taxable
and the state pension at the moment doesn't even pay Ј200 per week.
Best answers:
- Wow ok so I have pretty much got my head around it then, now I see why people are saying it would be nuts to opt out of it.
I work for a small company that hasn't started the scheme yet but as soon as they do I'm going to jump in at the full amount. - Ah I see so yeah like you said earlier it's great for people already middle-aged and heading towards the end of their working life (like me thank goodness) but not quite so valuable for those just starting out.
Thanks for your informative posts hugheskevi - Hi, I am also confused about the new LGPS.
I have been paying in to the pension scheme for approx 12 years, I am 33 and have just had a hike in my contributions from 6.8% to 8.5%, which means my take home pay has now dropped! I am unsure whether to opt out of this as I am trying to clear debt at the moment. It feels like it's a lot of money to be paying out of my wages each month!
I hope someone can help!?
Thank you.
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