Employment Pension

elsieandnora

This is my first time on here so apologies if I'm putting this question in the wrong place!

I am 51 years old and am currently employed as a casual supply teacher.My weekly hours are variable and at the moment very few and far between!

Under new regulations my employer has enrolled me in a pension scheme where both myself and my employer contribute.

I'm just wondering whether due to the nature of my working hours and my age if it as worth me staying in the pension fund or opting out.

Any comments would be gratefully appreciated.

McKneff

If your employer contributes too, you would be mad to opt out.

This is like your boss handing you a (say) £50 note every pay day and you saying 'no thanks; It's free money, man

It will be worth it when you take your pension, no matter how much it is,

Daedalus

Auto-enrollment depends on your income, not hours worked. You have to be enrolled if eligible, 7k i think the threashold is. You can then opt out and get the first contribution back.

However, you are basically putting 3% into savings and getting another 3% from your employer, pretax. So for 6% into a pension you are only feeling ~2% drop in salary.

TBH this shouldn't at all be optional, should be mandatory.

PuddleP

It is only 1% for the employee and 1% employer at the moment. 5% and 3% by 2018.

To be honest I would find it hard for anyone to advise you what to do. We are not financial advisers. What is good for me may not be the same to you.

My advice. Spend it now, you don't know what will happen tomorrow.

elsieandnora

I get paid weekly and since I was enrolled I have received two wages. In my first week I was working more regular hours I paid £3.62 into my pension, my employer paid £4.53. In week 2 (when my regular hours had ended) I paid 35 pence into my pension and my employer 44 pence.

Is it going to be worth me sticking with it?

Daedalus

elsieandnora wrote: »

I get paid weekly and since I was enrolled I have received two wages. In my first week I was working more regular hours I paid £3.62 into my pension, my employer paid £4.53. In week 2 (when my regular hours had ended) I paid 35 pence into my pension and my employer 44 pence.

Is it going to be worth me sticking with it?

Yes, in the sense that you will always have more money late then you would now, regardless of how little you put in. However, whether it is worth the few hours administrating your pension n 15 years time is up to you, I would still say yes.