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Ten Reasons to Stay in the CARE Pension Scheme

When you’re young and carefree, retirement can seem a long way off. So it can be tempting to choose to opt out of the police pensions scheme.

However, if you ARE thinking about opting out (or already have), make sure you read our ten gold-plated reasons to stay!

Most people are aware that the State Pension is a somewhat modest payment that, if it was to be your only income in retirement, could mean quite a frugal existence, with greatly restricted lifestyle choices.

We are all therefore encouraged to make additional arrangements for our retirement, whether through personal savings, investments, workplace schemes or other means.

Despite the recent changes to the police pension scheme, it remains a very good scheme – one which could still be described as ‘generous’ when compared to those from other sectors and occupations. In light of all this, here are ten reasons why opting out of the scheme is a step that should not be taken lightly.

1. Your employer shares the cost

They will also contribute almost twice as much as you do to the Scheme. This is essentially ‘free’ money that you will not get if you opt out.

2. Life cover of three years’ pay

From the moment you join you have life cover of three years’ pay. And unlike all other forms of life insurance, there are absolutely no medical requirements to qualify.

3. No hidden fees or charges

You simply contribute a percentage of your pay – simple as that.

4. Tax relief on all your contributions

Even on extra payments you make to top up your benefits (restrictions and limits apply).

5. Tax free lump sum

All members have the option to take a tax free lump sum as part of their benefits package on retirement. Many use this to finish paying, or put a big dent into their mortgage.

6. Guaranteed package of benefits

There is no investment risk unlike some other private schemes – you get a guaranteed package of benefits which are backed by law.

7. In-built protection

There is in-built protection for you in case you have to draw your benefits early through ill-health.

8. Protection for your loved ones

This means they will get a pension if you die.

9. Increases in line with inflation

Once you are receiving your pension it will go up in line with inflation, protecting you from rising prices.

10. Responsibility to provide for your own retirement

And finally, as mentioned before, we all have a responsibility to provide for our own retirement and being a member of the police pension scheme is a very good way for you to achieve this.



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