Opt-In at age 61?

SevenOfNine · 22 August 2015 at 11:14PM

My employer will reach their staging date soon, I'll be 61 & work part time & a non taxpayer (salary too low for tax/ni) but will fit in the 'choose to opt in' category (not opted in automatically).

I don't need an additional measly monthly pension TBH, but weighing up whether it will be worth opting in for the few years I plan to carry on working (probably until I can get my state pension at nearly 66).

I can't help feeling my small'ish employer will have to recoup the Auto Enrol employers expense from somewhere - slightly lower annual pay rises for staff, less profit for employer (yeah, right), or increased charge of their product for customers. The former seems most likely to me!

I'm wondering if I should opt in with the specific view of building just a small amount of my own & the employers bit of 'free' money, then when I retire at 66 can I just take out the pot that has accumulated?

Will I lose any/much of the pot in tax or pension providers fees making opting in for me a pointless exercise? Can anyone advise?

JoeCrystal · 23 August 2015 at 10:18AM

SevenOfNine wrote: »

My employer will reach their staging date soon, I'll be 61 & work part time & a non taxpayer (salary too low for tax/ni) but will fit in the 'choose to opt in' category (not opted in automatically).

I don't need an additional measly monthly pension TBH, but weighing up whether it will be worth opting in for the few years I plan to carry on working (probably until I can get my state pension at nearly 66).

I can't help feeling my small'ish employer will have to recoup the Auto Enrol employers expense from somewhere - slightly lower annual pay rises for staff, less profit for employer (yeah, right), or increased charge of their product for customers. The former seems most likely to me!

I'm wondering if I should opt in with the specific view of building just a small amount of my own & the employers bit of 'free' money, then when I retire at 66 can I just take out the pot that has accumulated?

Will I lose any/much of the pot in tax or pension providers fees making opting in for me a pointless exercise? Can anyone advise?

You might have a better chance getting an answer if you post your post on the main forum "Pensions, Annuities & Retirement Planning" instead.

atush · 23 August 2015 at 10:34AM

Well I would do just as you implied- build up a tidy pot (whacking as much in yourself as you can) then taking it as a lump sum, using your PA if you can so it is 100% tax free.

You can, esp in your last year if you like) put in up to 100% of your income. Using savings to live on that year?

xylophone · 23 August 2015 at 1:23PM

I'll be 61 & work part time & a non taxpayer (salary too low for tax/ni) but will fit in the 'choose to opt in' category (not opted in automatically).

http://www.nowpensions.com/securing-a-fair-deal-for-all-savers/
might be of interest.

Opt-In at age 61?

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