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