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  • FIRST POST
    • dumpyboy
    • By dumpyboy 8th Feb 17, 7:52 PM
    • 366Posts
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    dumpyboy
    Pension return
    • #1
    • 8th Feb 17, 7:52 PM
    Pension return 8th Feb 17 at 7:52 PM
    Today had a letter to say I am auto enrolled , at 1 per cent and them 1 percent , in the letter it says I pay £ 189 per year ,with 16 years left to work what sort of pension would I get,I think next to nothing, it says I have 3 months from this letter dated 2/2/2017 to opt out for the year
    Last edited by dumpyboy; 08-02-2017 at 9:28 PM.
Page 1
    • xylophone
    • By xylophone 8th Feb 17, 11:44 PM
    • 23,682 Posts
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    xylophone
    • #2
    • 8th Feb 17, 11:44 PM
    • #2
    • 8th Feb 17, 11:44 PM
    Why would you opt out and lose tax relief and the employer's contribution?

    https://www.gov.uk/workplace-pensions/what-you-your-employer-and-the-government-pay

    The contributions will gradually increase.

    And have you obtained a new state pension forecast?

    https://www.gov.uk/check-state-pension
    • tacpot12
    • By tacpot12 9th Feb 17, 7:28 AM
    • 746 Posts
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    tacpot12
    • #3
    • 9th Feb 17, 7:28 AM
    • #3
    • 9th Feb 17, 7:28 AM
    If the £189 figure is the amount you will pay after tax relief, I estimate that you will get a pension of about £500 per year, perhaps a bit more if your salary increases regularly.
    • dumpyboy
    • By dumpyboy 9th Feb 17, 8:06 PM
    • 366 Posts
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    dumpyboy
    • #4
    • 9th Feb 17, 8:06 PM
    • #4
    • 9th Feb 17, 8:06 PM
    Why would you opt out and lose tax relief and the employer's contribution?

    https://www.gov.uk/workplace-pensions/what-you-your-employer-and-the-government-pay

    The contributions will gradually increase.

    And have you obtained a new state pension forecast?

    https://www.gov.uk/check-state-pension
    Originally posted by xylophone
    Yes have got about 3 more years and get full single teir pension , I do not think I will opt out just wondered what I get and if it was going to be worth it
    • dumpyboy
    • By dumpyboy 9th Feb 17, 8:10 PM
    • 366 Posts
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    dumpyboy
    • #5
    • 9th Feb 17, 8:10 PM
    • #5
    • 9th Feb 17, 8:10 PM
    If the £189 figure is the amount you will pay after tax relief, I estimate that you will get a pension of about £500 per year, perhaps a bit more if your salary increases regularly.
    Originally posted by tacpot12
    It just say in letter based on last years earnings in the region of 189 deducted from wages and then a further 189 added my employer . I asked as as I pay 150 per month in private pension and the forecast is £3250 a year after 20000 a year thanks
    • AnotherJoe
    • By AnotherJoe 23rd Mar 17, 7:51 AM
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    AnotherJoe
    • #6
    • 23rd Mar 17, 7:51 AM
    • #6
    • 23rd Mar 17, 7:51 AM
    It just say in letter based on last years earnings in the region of 189 deducted from wages and then a further 189 added my employer . I asked as as I pay 150 per month in private pension and the forecast is £3250 a year after 20000 a year thanks
    Originally posted by dumpyboy
    It doesn't take a brain surgeon to understand that £189 from you plus £189 from employer beats £150 from you and zero from employer. No reason you can't continue the £150 into your separate scheme in addition but if you can only do one, the employers scheme doubles your contribution so you'd be barking to turn it down,
    • dunstonh
    • By dunstonh 23rd Mar 17, 3:45 PM
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    dunstonh
    • #7
    • 23rd Mar 17, 3:45 PM
    • #7
    • 23rd Mar 17, 3:45 PM
    If you pay in peanuts, you get back peanuts. However, it is still worth getting the free peanuts from the employer.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • dumpyboy
    • By dumpyboy 26th Mar 17, 7:04 PM
    • 366 Posts
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    dumpyboy
    • #8
    • 26th Mar 17, 7:04 PM
    • #8
    • 26th Mar 17, 7:04 PM
    If you pay in peanuts, you get back peanuts. However, it is still worth getting the free peanuts from the employer.
    Originally posted by dunstonh
    I did not consider paying 150 pound a month to be peanuts just thought 3250 a year was not much so what on earth would I get for 189 x 2 a year would be
    • worried jim
    • By worried jim 26th Mar 17, 7:06 PM
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    worried jim
    • #9
    • 26th Mar 17, 7:06 PM
    • #9
    • 26th Mar 17, 7:06 PM
    I did not consider paying 150 pound a month to be peanuts just thought 3250 a year was not much so what on earth would I get for 189 x 2 a year would be
    Originally posted by dumpyboy
    I save 18% into mine. I'm 43.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • dunstonh
    • By dunstonh 26th Mar 17, 7:44 PM
    • 89,942 Posts
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    dunstonh
    I did not consider paying 150 pound a month to be peanuts just thought 3250 a year was not much so what on earth would I get for 189 x 2 a year would be
    Originally posted by dumpyboy
    £150 is good for a 20 year old. Its not good for someone who is 35+. You say you have 16 years to work. So, that would likely put you in your 50s. So, its very poor for someone in their 50s.

    It was you that was suggesting that you would get next to nothing on that amount. £189 a year is not a lot but it is free money.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • dumpyboy
    • By dumpyboy 27th Mar 17, 10:05 PM
    • 366 Posts
    • 84 Thanks
    dumpyboy
    £150 is good for a 20 year old. Its not good for someone who is 35+. You say you have 16 years to work. So, that would likely put you in your 50s. So, its very poor for someone in their 50s.

    It was you that was suggesting that you would get next to nothing on that amount. £189 a year is not a lot but it is free money.
    Originally posted by dunstonh
    I have paid the private pension since I was 18 so 31 years, over a 100 to 150 for 18 years, had a forecast for for 20000 plus 3250 year was stunned by the small amount then he told me the workplace pension would be better, just could not see that I am going to get a lot out of it
    • dumpyboy
    • By dumpyboy 27th Mar 17, 10:06 PM
    • 366 Posts
    • 84 Thanks
    dumpyboy
    I save 18% into mine. I'm 43.
    Originally posted by worried jim
    It s about 10 per cent for me
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