I am a disabled 41-year-old working for a local authority. I have a local government works pension and Isa investments and savings. What is the best plan for me to increase my pension on retirement? I may well have to retire before pension age due to poor health.
As a member of the Local Government Pension Scheme, you are allowed to make additional voluntary contributions (AVC), buy pension top-ups or make personal pension contributions to an entirely separate scheme.
Based on the possibility that you may need to retire early due to your health, it would be sensible to maintain as much flexibility with the shape of benefits as you accumulate them rather than commit to a particular track now. Therefore, the AVC solution may be the best approach for you.
An AVC fund can usually be used to provide an additional tax-free lump sum at retirement and/or can be used to either provide an additional annuity type income or to purchase pension top-ups within your main scheme. This gives you the choice at retirement to select the most appropriate option for you depending on your circumstances at that time.