Pension - paying in lump sum before tax year ends

[Auntyaugust]

I work in the state sector (local authority) and have a tiny LGPS pension. Does anyone know how easy is it to pay in a lump sum before the end of this tax year?

The other question I have is it worth it even if I a) am old (aged 59) and b) possibly moving to a new job in the new tax year?

I have funds (though am not sure what the maximum amount I'm allowed to put in

Maybe call your pension provider for some advice for at least some answers.
Would there be a tax implication?

Wauden would there be a tax implication? I'm not sure. I earn around £35k/month; have some money in premium bonds but that's it

@SizzlingSeptember

Wauden would there be a tax implication? I'm not sure. I earn around £35k/month; have some money in premium bonds but that's it

I think that you need to find out either way. Try Martin Lewis money site and Daily Mail. Try an Independent Financial Advisor?

If you are paying out of net income, you should be able to reclaim the tax on it. But check with your pension provider

I always pay in as much as I can
It cuts my tax bill massively (self employed)

You may be able to buy additional years within the LGPS. It is a Defined Benefit scheme, so you are buying a specified future amount, which may be paid out for a long period of time, or not depending how long you live.

You can pay up to £40k pa (depending on your earnings), so if you have currently paid less than that this year, you can top up.

If your pension provider doesn't allow this your IFA would be able to arrange a private pension provider for the top up.

The £40k pa contributions point isn’t exactly right for DB pensions - what counts towards the £40k is calculated based on how much the pension you will get at retirement has increased over the year. The best thing to do is speak to your pension provider OP to find out what your options are re AVCs.

There's a poster on Moneysaving Expert named Silvertabby who used to be a Local Authority pensions administrator. She would be a very useful person to ask. (There is a specific board on their forums for pensions).

@SizzlingSeptember

Wauden would there be a tax implication? I'm not sure. I earn around £35k/month; have some money in premium bonds but that's it

You earn £35k per month??? Is that a typo?

Ha, yes - a typo. I wish. I meant a year

Take a look at this page OP. It is expensive to and doesn’t provide a pension for spouse, partner, dependent children etc

lgpsmember.org/more/apc/index.php Sorry didn’t add link

My pension provider (through employer) won't let you pay in additional lump sums but you can increase your contributions to pay more in. So you could pay the bulk of your salary in and then use the lump sum you have to live on while your pension builds up.

You need to check with your specific pension provider.

Yes you can do this, have a look at the link Polkadotties posted.

You do need to be careful of the annual allowance though - if you contact your administering authority (the council that runs your LGPS fund) and tell them how much you want to pay in they can let you know the annual allowance impact. As others gave said for a defined benefit scheme it’s the overall growth of your benefits that’s important, not the actual contributions.