Should I opt out of pension?

darkblue_2

I was told by my independent financial adviser that opting in was a big risk because it might not exist when I come to retirement. I took his advice - that's what I pay him for!

custardy

Shilly wrote: »

Thanks to everyone who has replied and given advice. It seems the consensus is to stay in. I think one of the major problems is seeing so far ahead into the future when retirement is at least 40 years away! I guess it will just take me a little longer to save up for that deposit, which isn't the end of the world. Thanks again.

treat it as a gift
you are in a stable job with good pension prospects and plenty of time ot capatalise on them
i would swap you

jem16

darkblue wrote: »

I was told by my independent financial adviser that opting in was a big risk because it might not exist when I come to retirement. I took his advice - that's what I pay him for!

Unlikely that it will affect accrued rights though.

It sounds very strange advice to throw away over 16% in employer's contributions.

dunstonh

I think one of the major problems is seeing so far ahead into the future when retirement is at least 40 years away!

As you get older, time goes quicker. I'm afraid you will be 40 in no time.

I was told by my independent financial adviser that opting in was a big risk because it might not exist when I come to retirement. I took his advice - that's what I pay him for!

I have never known an IFA recommend opt out of a teachers scheme. The FSA certainly wouldn't consider that reason as suitable or justifiable. It's impossible to see any real justification in not being in the scheme as nothing else financially will match it.

Are you really sure it was an IFA that suggested that and you paid a fee for it? If so, get a second opinion now as it does not seem right. You have consumer protection for advice and if it is wrong, then you should get it sorted now, before its too late.

custardy

dunstonh wrote: »

As you get older, time goes quicker. I'm afraid you will be 40 in no time.

.

too true

Aegis

darkblue wrote: »

I was told by my independent financial adviser that opting in was a big risk because it might not exist when I come to retirement. I took his advice - that's what I pay him for!

That actually sounds like very dubious advice. In almost all cases, advice to opt out of a final salary pension scheme is wrong unless the terms are extremely poor and the returns you can get from other pensions are likely to exceed the final accrued pension from the occupational scheme.

I'd be very hard pressed to come up with a single good reason to recommend that someone not participate in any occupational pension scheme where the employer contribution is significant, let alone a defined benefit scheme.

MyLastFiver

darkblue wrote: »

I was told by my independent financial adviser that opting in was a big risk because it might not exist when I come to retirement. I took his advice - that's what I pay him for!

That is completely bonkers advice. Change your IFA.

darkblue_2

Ohwell, I don't really mind. It's a company paid pension at 10% of my salary and by the time I'm of pension age - it will probably be 100 and I'm unlikely to see any of it anyway.

jem16

darkblue wrote: »

Ohwell, I don't really mind. It's a company paid pension at 10% of my salary

It's obviously not the Teachers' Pension you are referring to here which is the whole subject of this thread. You're still throwing away 10% of your salary and all you can say is Oh well????

What scheme is it?

and by the time I'm of pension age - it will probably be 100 and I'm unlikely to see any of it anyway.

As I said before, final salary accrued rights unlikely to be be altered so that's a load of rubbish.