Topping up your pension

It is widely regarded by experts in the industry that people in the UK are generally not saving enough towards their retirement. As a member of the Local Government Pension Scheme (LGPS), with automatic access to an excellent benefits package, you already have a head start over many other workers in the UK but you still may need to look at your retirement planning to see whether the pension benefits you are building up are going to be enough.

Many people are simply unaware of just how much money they will need in retirement to maintain the lifestyle they enjoyed whilst working. Others think they cannot afford to save extra to boost their retirement benefits and others, whilst wishing to do something about saving more, just don’t know what is available to them or how easy it can be or how the Tax Man can help by making it cheaper for you to save.

In 2006 many of the restrictions on the amount of benefit that could be taken from the scheme or the amount of membership that could be accrued were lifted, so even if you joined the scheme at a young age and will have many years of membership at retirement, you can still pay additional contributions to get even more benefit and financial security when you do retire. But if you joined the scheme later in life and/or you plan to retire early if you can, then it is probably even more important that you are aware of what you can do to get more from your pension scheme when you eventually finish work.

As a member of the LGPS you have two ways of increasing your benefits.

One is to buy an actual additional benefit from the pension scheme itself in the form of more retirement pension. This is done by paying Additional Pension Contributions (APCs). Clicking on the hyperlink will take you to more information about this particular method.

The other is to save money into a saving scheme invested and administered by a third party provider which will be a private company. This facility is called AVCs (Additional Voluntary Contributions). Clicking on the hyperlink will take you to more information about this method of saving.

SYPA neither recommends nor advises that either method is suitable or appropriate for any individual.

APC

Additional Pension Contributions

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AVC

Additional Voluntary Contributions

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