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S2P v Company Pension
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seven-day-weekend
Posts: 36,755 Forumite
Am I correct in thinking that as things stand at the moment, if someone is on a low wage (c.20 hours pw at just over minimum wage) it is not usually worth their while joining an opted-out Company Pension scheme because they will be better off with S2P?
I'm afraid I know no details of the scheme other than it is not a final salary one. The person concerned is single, 27 and not a houseowner.
Thanks
I'm afraid I know no details of the scheme other than it is not a final salary one. The person concerned is single, 27 and not a houseowner.
Thanks
(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
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Has anyone any advice?(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
If it isnt final salary, joining shouldnt have any impact on S2P.
The scheme may currently be contracted out but that wouldnt mean the same thing as being contracted out in a final salary scheme.
Plus, I wouldnt want to rely on S2P as a 27 year old. There is 40 years for the Govt to abolish it before you get it and that is quite a strong possibility given the willingness by many MPs to move to a single state pension.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.0 -
If the company scheme offers free money she should join it - the S2P question is only a small side matter, not the deciding factor.
Where there's a clear indication to stay with the Govt is when the alternative is to contract out into a private pension with no employer contributions, but only the NI rebate going in. In that case, better to stick with S2P.Trying to keep it simple...
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Thanks very much, that will help him to decide.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0
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