Pension Choice

[BlueHammer85]

You are going to take a pay cut?
If you opt out your employer stops contributing.

agree, but also the quickest way/solution i can pay off a seperate loan

 

[denislawsbackheel]

You’ll have to very disciplined to rejoin.
Loads of people “take a break” then find no end of reasons not to rejoin.
And of course those that rejoin have missed the years of compounding whilst they were away.

 

[BlueHammer85]

You’ll have to very disciplined to rejoin.
Loads of people “take a break” then find no end of reasons not to rejoin.
And of course those that rejoin have missed the years of compounding whilst they were away.

Agreed, thanks advice

would a company usually be 'funny' about an employee doing this ? or is it no skin off their nose ?

 

[117 M34]

My work offer matched up to 10%.
I'm currently paying 6%.
Upping it to the maximum 10% is just free money for me isn't it?

 

[GornikDaze]

Agreed, thanks advice

would a company usually be 'funny' about an employee doing this ? or is it no skin off their nose ?

Re-enrolment for auto enrolment pensions

Read our helpful online guide to re-enrolment, as part of the workplace pension auto enrolment legislation.

www.aviva.co.uk

This is aimed at employers, but it confirms you have to be re-enrolled every three years, so its no skin off their nose

 

[GornikDaze]

My work offer matched up to 10%.
I'm currently paying 6%.
Upping it to the maximum 10% is just free money for me isn't it?

Yes - bite their hand off!!

 

[Kompany Car]

You are going to take a pay cut?
If you opt out your employer stops contributing.

This and he will effectively pay more tax on his income.

 

[Kompany Car]

Agreed, thanks advice

would a company usually be 'funny' about an employee doing this ? or is it no skin off their nose ?

They are usually quite accommodating if you speak to HR or your rewards team.

 

[Devil's Advocate]

My work offer matched up to 10%.
I'm currently paying 6%.
Upping it to the maximum 10% is just free money for me isn't it?

Yes...

You pay net 8% (10% gross) and they pay 10% gross

On, say, £25000 salary that means £5000 saved into the pension scheme with a net cost to you £2000.

If affordable it is a no brainer

 

[Devil's Advocate]

Agreed, thanks advice

would a company usually be 'funny' about an employee doing this ? or is it no skin off their nose ?

They save money assuming the employer contribution stops

 

[Kompany Car]

My work offer matched up to 10%.
I'm currently paying 6%.
Upping it to the maximum 10% is just free money for me isn't it?

No brainier, my work doubles what I put in but only to a maximum of 6% of salary. So they put 12% in. Likewise they also let you dump any bonuses in therefore avoiding tax.
You have to use the system to your advantage where you can.

 

[mancityvstoke]

What happens to all your contributions if they (pension provider) go bust? Are they protected?

 

[Kompany Car]

What happens to all your contributions if they (pension provider) go bust? Are they protected?

Yes to a certain degree via the pension protection fund.

 

[Devil's Advocate]

What happens to all your contributions if they (pension provider) go bust? Are they protected?

Pension Protection Fund mainly covers.

In most cases if the contributions are remitted to, say, a largish insurance company it is all ring-fenced.

 

[mancityvstoke]

Pension Protection Fund mainly covers.

In most cases if the contributions are remitted to, say, a largish insurance company it is all ring-fenced.

Looking at recent events does the value of your lump sum get diminished daily if you are retiring in the next few weeks?

 

[kippaxwarrior]

I've got nearly £30K put away in various pensions. Should I be worried?

 

[Scottyboi]

I've got nearly £30K put away in various pensions. Should I be worried?

.Worried about what? The small amount or the financial system crashing and it all being worthless?

 

[west didsblue]

What happens to all your contributions if they (pension provider) go bust? Are they protected?

If one fund goes the PPF should cover. If loads fail at the same time it’s anybody’s guess.

 

[Mazzarelli's Swiss Cheese]

Inflation has gone up or he's improved his technique it used to be 20,000 according to a friend.

The collapse of the pound may mean drone does full 'dirty Sanchez ' and pegging for the same money now

 

[kippaxwarrior]

.Worried about what? The small amount or the financial system crashing and it all being worthless?

Worried that I'll lose it all due to this government