Is it actually worth saving towards pension?

dunstonh

OP's pay would increase by £1k per annum by dropping the 10% pension payment. Hence OP earns about £10k

I make the earnings closer to £16,500 as a £1k net reduction equates to that.

Your own figures suggested (and let's be honest here, there are no guarantees with pensions; including government intervention to skim profits off) that the OP would get £8600 per year. How does that see them "set up for life"? Aim low? And can YOU guarantee this return?

You've also said it's a defined benefit scheme. I can't see that in the OPs posts anywhere.

There is enough information in the later posts that indicate a final salary scheme rather than the initial thought it was a money purchase scheme. (scheme age, health declaration etc)

IFAs might talk about how much "free money" the employer is putting in, and what a great deal it is taken in isolation, but when you actually look at the big picture, what difference does it make to the person's future?

A lot of pension selling is just smoke, mirrors and fear.

If you think "free money" is not worth it then there is no hope for you.

Whilst it certainly sounds a good scheme (though at twice the employee contribution rate I pay so I can't say I'm envious), I don't think you can say that it will probably see the OP set up for life in retirement. Even if they stay with the same employer until retirement, the chances are the scheme will be closed long before then.

At 31 and being in the scheme for 3 years already and based on estimated income, then the occ scheme and state pension will probably see very little drop in income in retirement from working life. If the scheme closes in future then you look at the situation again then but whilst its available, you make hay.

Oh dear dunston ! I am disappointed in you............ "evidence" in the media

I know. However, with the information being leaked in dribs and drabs by unofficial sources that is about the only way to know what they are looking at. To be fair though, the information has been correct to date.