LGPS fund fights fears caused by cost of living crisis

The South Yorkshire Pensions Authority has launched a leaflet aimed at preventing members abandoning their pensions as a reaction to concerns about the cost of living crisis.

The rising cost of living has given many people new money worries. The energy crisis, increased mortgage payments, high fuel costs are all having an impact.

With the leaflet, the authority has acknowledged that contributing to a pension may seem like an unnecessary luxury during the current crisis and that opting out of the scheme may seem a sensible option.

This leaflet ensures any member is fully aware of what they may be giving up before they make any final decision to opt out.

It highlights the benefits of saving in terms of income in retirement and benefits paid to dependents upon the member’s death. It also outlines what is lost through giving up employer contributions, and in particular the security the LGPS scheme offers individuals.

The leaflet also explains that members need not leave the scheme altogether, but could choose the 50/50 scheme, reducing contributions in exchange for half pension while protecting ill health benefits in full.