As a local government, firefighter, or police pension scheme member, you have access to a range of valuable benefits. Here are five that can make your pension worth paying into.
1. Tax relief
The cost of being a pension scheme member is actually lower than you might think. Your pension contributions are taken from your salary before tax is deducted. So, the more money you pay in to your pension, the less money you pay in income tax.
2. Financial protection for the people you care about
Your workplace pension may include a death grant, which is a lump sum payment that provides financial support to the people you care about in the event of your death. Your pension fund (or police/fire and rescue authority) ultimately decides who receives the lump sum, but you can usually choose a beneficiary (or beneficiaries) to simplify the process.
3. Early retirement
Rather than waiting until your normal pension age, you may have the option of taking your pension early, depending on your scheme. Although your annual pension income would be reduced, it gives you more flexibility on your future retirement plans.
4. A pension for your partner (or children)
Another benefit of your pension scheme is a survivor’s pension, which is a regular monthly income that can be paid to your spouse, partner or children in the event of your death (not to be confused with a death grant, which is a one-off lump sum payment).
5. A pension if you are too ill to work
If you become too ill to work, you may be able to retire early and still receive your full pension (as long as you meet the relevant criteria).
These are just some of the benefits of your workplace pension, which can give financial protection for your future and the people that matter the most to you. To understand more about your pension benefits, explore our website.
