Join Company Pension Scheme???

michmar72

Hi all

I have passed my six month probation at work and now i can join the pension scheme?

I'm not sure its a job for life, they have made redundancies lately so i don't know if I should just hang on to my cash or join.

They match the 3% contribution.

I have 10 years worth of pension from previous jobs, then nothing for the past 10 years, I;m 40 this year.

Thanks

dunstonh

They match the 3% contribution.

If you dont join you take home 2.4% (probably close to 2.3% after NI.
If you do join then your pension gets 6%.

Do you want to have 2.4% in your hand or 6% in your pension?

I have 10 years worth of pension from previous jobs, then nothing for the past 10 years, I;m 40 this year.

Quantity of pensions is irrelevant (you can consolidate most). What the pensions are worth or will provide is far more important.

michmar72

Thank you, think I will join up and get the most out of them.

CannySaver_2

Hi

I think joining up is the right decision, it is afterall free money.

I read somewhere that membership of workplace pensions has dipped below 50%, which is quote scary. I realise for some that the 2.4% (in your case) is the difference between paying bills and not doing so, but for most that is not the case. I wonder what the reasons for such a low take up rate are, I believe one of the reasons is the constant negative press attached to pensions, the industry as a whole must do more to counter this and articulate better the need of saving for retirement.

Join up, you won't regret it in the long run.

The Canny Saver

elantan

For me it was more the emploer doesnt contribute anything

CannySaver_2

elantan wrote: »

For me it was more the emploer doesnt contribute anything

That's fair enough I suppose, hardly much incentive other than disciplined savings i.e. taken straight from your pay packet and maybe a discount on fees as it is part of a larger scheme.

JoeCrystal

elantan wrote: »

For me it was more the emploer doesnt contribute anything

Agreed. My employer only offer Standard Life Stakeholder Pension Scheme with a massive zero contribution of course. Leaving me to pay into Scottish Widows Personal Pension Scheme which have more funds and lower charges.

Cheers

Joe.

fairleads

CannySaver wrote: »

Hi

I think joining up is the right decision, it is afterall free money.

I read somewhere that membership of workplace pensions has dipped below 50%, which is quote scary. I realise for some that the 2.4% (in your case) is the difference between paying bills and not doing so, but for most that is not the case. I wonder what the reasons for such a low take up rate are, I believe one of the reasons is the constant negative press attached to pensions, the industry as a whole must do more to counter this and articulate better the need of saving for retirement.

Join up, you won't regret it in the long run.
The Canny Saver

Maybe the facts bear out the negative press?

CannySaver_2

fairleads wrote: »

Maybe the facts bear out the negative press?

Some of the press is fair but some is overly negative towards pensions. Most newspapers seem to simply select stories and write them in a way which suits their agenda, I guess it was ever thus.

The government, of whichever colour, is also to blame. Constant tinkering with the pension system undermines consumer confidence which results in low take up of schemes, a general lack of retirement provision etc.

The advisory community, with some very notable exceptions, don't help themselves either sometimes.

The Canny Saver

atush

fairleads wrote: »

Maybe the facts bear out the negative press?

Personally, I don't think the facts bear this out.

I think the stories are mainly scare stories due to funds dropping in value after market crashes soon before retirement, and the highest managment charges of actively managed funds. People close to retirement should not be 100% invested in equities in any case. That fact that some are is largely due to their own negligence really.

Also, many dont join because they are mortgaging their future to pay for todays lifestyle. I am sure most of those who haven't joined aren't saving sufficently elsewhere to make up for it (in cash, ISas and the like).