Work pension worth it short term?

Sorry to be that person that asks the really simple questions but I'm clueless with these things.

Is it worth paying into an employee pension if you have no intention of staying there for long? I can't see myself being there more then a year and the contributions would be minimal as I'm on a part-time wage, but I guess if it's really straight forward to transfer I wouldn't leave this job without having another so better to start early?
People don't know what they want until you show them.
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  • AnotherJoe
    AnotherJoe Posts: 19,622
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    Will your employer make a contribution as well as yours ? If so why turn down free money ?
  • dunstonh
    dunstonh Posts: 116,040
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    I can't see myself being there more then a year

    A phrase often used by many who went on to spend 10-20-30 years with that employer.

    Do you want to turn down free money?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Kayalana99 wrote: »
    Is it worth paying into an employee pension if you have no intention of staying there for long? I can't see myself being there more then a year and the contributions would be minimal as I'm on a part-time wage, but I guess if it's really straight forward to transfer I wouldn't leave this job without having another so better to start early?

    Your entire working life will be made up of a long series of short periods. Saving for your retirement in each of them is the easiest way to accumulate a pot of pension assets.

    Warmest regards,
    FA
    Thus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...
    THE WAY TO WEALTH, Benjamin Franklin, 1758 AD
  • I have a work colleague who didn't join for the same reason.
    20 years later he's missed out on a valuable DB scheme.
    He's now watching colleagues transfer out at many times what he's been able to accumulate by himself.
    Take it while it's on offer.
  • DigForVictory
    DigForVictory Posts: 11,903
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    +1 for never walk away from free money.
    Some schemes let you take it all back if you leave within a defined period, so it may just be a savings account, but a pension is always worth having, and the younger you start, the better!
  • Thanks for the replies, no I genuinely won't be here in absoulte max 2 years. I think we are talking about £10-15 a month into a pension so didn't think perhaps it was worth having a £300 pension pot unless it was something that could easily be transfered? Otherwise won't it mean for next 40-50 years I'll have to keep record of this ridiculously small pension pot unless it moved to the next company etc?

    Employer puts in the same amount, yes.
    People don't know what they want until you show them.
  • dunstonh wrote: »
    A phrase often used by many who went on to spend 10-20-30 years with that employer.

    I 100% won't be one of them! :beer:
    People don't know what they want until you show them.
  • Malthusian
    Malthusian Posts: 10,898
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    Kayalana99 wrote: »
    Thanks for the replies, no I genuinely won't be here in absoulte max 2 years. I think we are talking about £10-15 a month into a pension so didn't think perhaps it was worth having a £300 pension pot unless it was something that could easily be transfered?

    It can be easily transferred, and £300 is worth having when the alternative is £0.

    If you disagree, I will PM you my bank details so you can send me £300.
    Otherwise won't it mean for next 40-50 years I'll have to keep record of this ridiculously small pension pot unless it moved to the next company etc?
    If it's ridiculously small then transfer it to a bigger one. If you haven't got a bigger one, put more in it.
  • Alexland
    Alexland Posts: 9,653
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    edited 12 September 2017 at 11:49AM
    Take the free money and transfer the pot to your next employer or use it as the starting point to run two pensions in parallel. When you get older you don't want all your eggs in one basket anyway.

    Maybe add some extra voluntary contributions to save some tax and possibly national insurance? When you are young it's the best time to start compounding returns.
  • Start by estimating the amount of your employer contributions and the amount of tax relief you would receive.

    Divide that by the amount of time it would take to transfer your pension when you leave. 1 hour should be enough.

    That gives you an hourly rate for the time spent mucking about with your pension.

    If you earn £22,000 a year, 1% matching contributions would net you about £264 (including tax relief) over 1 year. Your hourly rate is £264.

    Would you do 1 hour's work for £264? I would.
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