Opting out of pension

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  • Bravepants
    Bravepants Posts: 1,503 Forumite
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    OP, I just stuck your £22k a year into a tax and NI calculator...it seems you take home £1520 a month. You should at least be putting 10% of that into long term savings...your pension contribution would be a substantial proportion of that.

    You can't make ends meet on £1520 a month?

    OK it's time....I call troll!
    If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.
  • haras_nosirrah
    haras_nosirrah Posts: 2,208 Forumite
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    Bravepants wrote: »
    OP, I just stuck your £22k a year into a tax and NI calculator...it seems you take home £1520 a month. You should at least be putting 10% of that into long term savings...your pension contribution would be a substantial proportion of that.

    You can't make ends meet on £1520 a month?

    OK it's time....I call troll!


    I don't think the op is a troll - they have been posting for 2 years. It depends a little on where you live as to how far £1500 goes - in london and the south east I can see it could be a stretch. I would move into shared housing or get a weekend job in a pub before I gave up that pension though
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • mollycat
    mollycat Posts: 1,475 Forumite
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    bigadaj wrote: »
    Well might be better to put any response in context.

    Apologies if you didn't want a sensible debate but just wanted a knee jerk reaction, I would not have thought discussion boards and forums were the place for you in that case.

    I read post #14 over again and can't quite get what part constitutes "sensible debate".

    I realise that the urge to consider yourself one the forum's elite is quite strong, and this probably is the reason you arrogantly suggest who is suited to participate. I have to tell you, the forum is for everyone, whether they have 10,000 posts or 10 posts. Try reading others views with a more open mind and you will probably be less likely to misconstrue context.

    Bravepants...I thought troll very early on in the thread also. :)
  • Bravepants
    Bravepants Posts: 1,503 Forumite
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    haras_nosirrah wrote: »
    I don't think the op is a troll - they have been posting for 2 years. It depends a little on where you live as to how far £1500 goes - in london and the south east I can see it could be a stretch. I would move into shared housing or get a weekend job in a pub before I gave up that pension though

    Indeed shared housing! At such a young age that would seem sensible in such areas, until pay rises and an OH comes along at least.

    Re troll: I think I was being more sarccy than genuinely meaning troll...she does come across as being a little troll like.
    If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.
  • kmb500
    kmb500 Posts: 656 Forumite
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    Bravepants wrote: »
    OP, I just stuck your £22k a year into a tax and NI calculator...it seems you take home £1520 a month. You should at least be putting 10% of that into long term savings...your pension contribution would be a substantial proportion of that.

    You can't make ends meet on £1520 a month?

    OK it's time....I call troll!
    My take home pay is £1436 (I think) per month. If it was £1520 as you've rightly calculated, then yes exactly there's more money to save.
    haras_nosirrah wrote: »
    I don't think the op is a troll - they have been posting for 2 years. It depends a little on where you live as to how far £1500 goes - in london and the south east I can see it could be a stretch. I would move into shared housing or get a weekend job in a pub before I gave up that pension though
    Bravepants wrote: »
    Indeed shared housing! At such a young age that would seem sensible in such areas, until pay rises and an OH comes along at least.

    Re troll: I think I was being more sarccy than genuinely meaning troll...she does come across as being a little troll like.


    I do live in a shared house. It's still very expensive at least here in Cambridge.
  • Alice_Holt
    Alice_Holt Posts: 5,949 Forumite
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    edited 29 September 2017 at 8:17PM
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    :cheesy::cheesy:As a Council tax payer to the tune of over £2k pa, I would personally strongly encourage the OP to opt out.

    I would also be very happy for her to use the £84 to buy cancer sticks / booze, as it limits dramatically any future Pension Credit payments liability for the taxpayer.

    Go on KMB500 ignore all the advice on here. You know best. Of course you do.
    Get that opt out form in now, forget about tomorrow.
    BTW - I believe there are some very good credit card deals ATM, live for now.
    Something is bound to turn up when you're older (apart from poverty, regret, the early intervention of a grim reaper, etc).
    It'll be fine.:D
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • k6chris
    k6chris Posts: 738 Forumite
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    YOLO.....but what they don't tell you is that 1/3 of that L is likely to be funded by your pension....
    "For every complicated problem, there is always a simple, wrong answer"
  • Bravepants
    Bravepants Posts: 1,503 Forumite
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    kmb500 wrote: »
    My take home pay is £1436 (I think) per month. If it was £1520 as you've rightly calculated, then yes exactly there's more money to save.

    I do live in a shared house. It's still very expensive at least here in Cambridge.

    Yes add the £84 to £1436 and we get to £1520.

    It would be interesting to see a breakdown of your monthly spending.

    How much rent do you pay? £400 a month? Does that include bills?

    First rule is to "Pay yourself first", that means savings. Getting 3 times what you pay in is far too good a return to just forget about.
    If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.
  • haras_nosirrah
    haras_nosirrah Posts: 2,208 Forumite
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    looks to be about 400-500 a month to rent a room in cambridge including bills

    if you take home £1436 now that still gives you around £900 a month to spend on food, commuting, stuff, and fun after your pension has been deducted.

    you can afford £84 a month - If you were paying £750 a month plus council tax and bills then it may be different but with £900 left for spends you need to stay in the pension - you have more disposable income now than most people do
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • GunJack
    GunJack Posts: 11,673 Forumite
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    to the OP - why exactly have you moved out of parent's house (where your rent/keep would be a lot cheaper) into something that's:-

    1. costing you a lot more
    2. putting one of the best remaining pensions in the country at risk
    3. increasing your other living costs (food, utilities, etc.)
    4. there are probably more, but 1-3 are plenty

    If it's all because your social life now is more important than your future, fine, but you WILL regret it as you get older, guaranteed. I know it's a good area to be in (I lived in Huntingdon just up the road for 9 years) for nights out, but that really isn't the be-all and end-all.

    This isn't meant to sound harsh, but grow up, you're an adult not a student, and you'll be so for a pretty long time - move back in home, save some money to have behind you before venturing to a rented place, stay in the pension, and then maybe you can have both ( a decent pension and a social life)....
    ......Gettin' There, Wherever There is......

    I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple :D
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