Pensions Decisions, Decisions !!

sabelu

thirdparty wrote: »

To be honest, I don't see any benefit of this to the member only the employer.

If we take out the potential gain or loss in the movement of investment as a possible reason then the only benefit is that you would have the additional cash now if you needed it desperately for something else - debt repayment.

By deferring the decision, the employer gains from having better cashflow not and if members decide at later date to take up the offer there is the potential they may not want to back-date their contributions as they cannot afford to and the employer gains by making less contributions.

If you are being made redundant in 6/8 months time, how confident are you in finding another job? What is the reason for increasing your contributions from 5% to 10% at the first opportunity?

Reason for increasing contributions during the 6/8 months is to gain the tax relief and realising I could be out of work for a few months enduring there is no major void in my pension contributions during this period. Will leave with a 2.5 - 3k pot to transfer elsewhere possibly.