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  • FIRST POST
    • MSE Amy
    • By MSE Amy 1st Oct 15, 11:22 AM
    • 27Posts
    • 36Thanks
    MSE Amy
    Pension Auto-Enrolment
    • #1
    • 1st Oct 15, 11:22 AM
    Pension Auto-Enrolment 1st Oct 15 at 11:22 AM

    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
Page 1
    • lucys mum
    • By lucys mum 9th Feb 16, 2:28 PM
    • 387 Posts
    • 581 Thanks
    lucys mum
    • #2
    • 9th Feb 16, 2:28 PM
    • #2
    • 9th Feb 16, 2:28 PM
    Hope this is the right place - I am due to retire in October but will not be doing - should I be enrolled into the scheme please?
    • LHW99
    • By LHW99 14th Feb 16, 8:58 PM
    • 899 Posts
    • 745 Thanks
    LHW99
    • #3
    • 14th Feb 16, 8:58 PM
    • #3
    • 14th Feb 16, 8:58 PM
    Do you mean you will reach state retirement age in October?
    If that is the case, and you meet the income criteria, then you would be a "non-eligible job holder" but should be able to opt in to the scheme if you are under 74.

    See page 13 of the booklet
    http://www.thepensionsregulator.gov.uk/docs/detailed-guidance-1.pdf
    • richardic
    • By richardic 23rd Sep 16, 4:16 PM
    • 1 Posts
    • 0 Thanks
    richardic
    • #4
    • 23rd Sep 16, 4:16 PM
    Auto-Enrolment Guide
    • #4
    • 23rd Sep 16, 4:16 PM
    There seem to be 3 circumstances where you might not want to auto-enrol that are not mentioned in the Guide.
    You have one of the Lifetime Allowance Protections that will be lost if you make further pension contributions
    You are near to your Lifetime Allowance (currently £1M) and going over the limit would incur a tax penalty of 55%.
    You are close to retirement and will be on means tested benefits in retirement. The reduction in means tested benefits could be greater than your own contributions to the pension scheme.

    Will the Guide be updated to include these considerations?
    • kookamunga
    • By kookamunga 30th Nov 16, 2:10 PM
    • 12 Posts
    • 0 Thanks
    kookamunga
    • #5
    • 30th Nov 16, 2:10 PM
    Self-Employed - can I auto-enrol myself?
    • #5
    • 30th Nov 16, 2:10 PM
    If I run my own company, can I auto-enrol myself into the employer provided pension? If yes, is that still classed as employer provided pension or would that be classed as an individual pension?
    • LHW99
    • By LHW99 30th Nov 16, 6:57 PM
    • 899 Posts
    • 745 Thanks
    LHW99
    • #6
    • 30th Nov 16, 6:57 PM
    • #6
    • 30th Nov 16, 6:57 PM
    If you are truly "self employed" there is no company - companies are incorporated via Company's House (or similar in other countries) and get a registration number and the right to use Ltd (or Plc).
    If you run a company, you have a staging date, and have to autoenrol employees who meet certain criteria.
    If you are self employed, you wouldn't be subject to autoenrollment, but you can open you own personal pension or SIPP and get tax relief from the Government.
    • dunstonh
    • By dunstonh 6th Dec 16, 2:24 PM
    • 89,852 Posts
    • 55,455 Thanks
    dunstonh
    • #7
    • 6th Dec 16, 2:24 PM
    • #7
    • 6th Dec 16, 2:24 PM
    If I run my own company, can I auto-enrol myself into the employer provided pension? If yes, is that still classed as employer provided pension or would that be classed as an individual pension?
    Probably best asked on the main forum as this gets so few people reading it.

    First question: are you self employed like you suggest or are you the shareholding director of a limited company (which is not self employed)?

    Limited company

    If you dont employ anyone then you dont need an auto-enrolment scheme and are free to use your own individual pension with employer contributions to it. That is what most shareholding directors will do where there are no employees.

    If you have employees then you are dragged into auto-enrolment (as are all directors) and have to be auto opted in. You can opt out but you will have to decide whether it is worth it or not. It really depends on your pension and investment choice.

    Self employment
    Auto enrolment does not apply to you.
    • DianeRendell
    • By DianeRendell 3rd Feb 17, 1:49 PM
    • 1 Posts
    • 0 Thanks
    DianeRendell
    • #8
    • 3rd Feb 17, 1:49 PM
    Diane Rendell
    • #8
    • 3rd Feb 17, 1:49 PM
    Is it worth joining a pension scheme for a 9 month contract at age 22?
    I have been offfered auto enrolment for a retirement saver scheme with an employer where I am on a 9 month contract.
    . I understand the extra money that will be paid in by the employer and tax rebate but when I leave the pot will sit there until the retirement age (65) so over 40 years - won't the scheme charges whittle away the money saved?
    • dunstonh
    • By dunstonh 15th Feb 17, 10:34 AM
    • 89,852 Posts
    • 55,455 Thanks
    dunstonh
    • #9
    • 15th Feb 17, 10:34 AM
    • #9
    • 15th Feb 17, 10:34 AM
    Sorry, this section doesnt get hardly any readers. Most stick to the main pension section. We have asked the board to close it a number of times but they dont seem to mind people not getting responses.

    Is it worth joining a pension scheme for a 9 month contract at age 22?
    Yes. At 22 you should have a pension and you get "free money" from the employer. What is there not to like about free money?

    It may not be for long but when you start your next one you can move the money over.

    won't the scheme charges whittle away the money saved?
    No. That is statistically impossible.
    • CapricornLass
    • By CapricornLass 19th Feb 17, 8:58 PM
    • 64 Posts
    • 194 Thanks
    CapricornLass
    Hi, dunstonh,

    Maybe you won't mind me asking my question?

    I'm got a contract for 7 months, and I have been autoenrolled. I've just started taking my private pensions, but will try and carry on working for a little longer if I can. However, what I can't decide is whether to pay in money into the new pension in respect of the work I did last year, when I had no pension at all. However, I've got to balance that against the fact that I might not get any more work after July, and that I won't be able to access that money until my state retirement age - in about 6 years time. Either way, its likely to be an extremely small pension pot!

    I'd be really interested in your opinion on this - at the moment I'm just going round in circles and dithering!

    many thanks,

    CapricornLass
    Sealed Pot Challenge no 265.
    • patricia1066
    • By patricia1066 27th Feb 17, 10:05 PM
    • 253 Posts
    • 73 Thanks
    patricia1066
    NEST and Autoenrollment
    My employer needs to autoenroll me into a pension, but hasn't got any pension arrangements yet. I saw that NEST seems to have been designed for this situation, low administration required and low charges for a pension plan.

    A SIPP is an alternative, but would involve a big learning curve.

    Are there any other options to consider that would be easy to administer?
    • rowco
    • By rowco 2nd Apr 17, 9:21 PM
    • 4 Posts
    • 2 Thanks
    rowco
    There's a major omission in the main site's Auto-Enrolment article, which is that the minimum contribution under auto-enrolment is NOT actually 1% of gross earnings, it's 1% of gross earnings over £5824. This "Lower Earnings Threshold" is not mentioned anywhere on the guide, and for some people this could be a significant difference in contributions.

    If you earn the minimum £10000 to be auto-enrolled, the minimum contribution is actually a measly 0.4%! This makes the 1% figure misleading for the very people who auto-enrolment is supposed to benefit.

    This is included in the Money Advice Service's guide (sorry, I don't have enough reputation to post links) and accounted for in their calculator. They also assume that employee contributions will be calculated after this threshold, which is in fact what my employer did, leading me to scratch my head why they hadn't taken the amount I thought I'd asked them to.

    The MAS also has a useful page titled "Automatic enrolment if you earn up to £10,000" If you earn over the £5824 threshold, your employer doesn't have to auto-enrol you, but they do have to contribute if you ask. Of course, at the current thresholds, they only have to pay fractions of 1%.

    It would be great if the article could be amended to include these points, because I'm used to MSE being very good at mentioning gotchas like this.
    • LHW99
    • By LHW99 3rd Apr 17, 10:47 PM
    • 899 Posts
    • 745 Thanks
    LHW99
    Patricia1066 - I don't think a SIPP can be used by an employer for autoenrollment. There is nothing to stop you having one, and the employer could choose to pay into it for you. But if the employer comes under the autoenrollment regulations then my understanding is they have to set up a scheme and you still have to be enrolled, and then you'd opt out.
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