Paying into employers pension scheme for three years

Youknowme_2

Hi all,

I have tried searching but could not find an answer. I am employed part time but would expect that I will only be with the company for three years maximum.

They have a pension scheme and contribute 7% from memory, which would be circa £60/month in addition to what I would put in. Is it worth joining the scheme for such a short period of time or would the fund be 'eaten' by management fees.

I have no other pensions at present.

mgdavid

Free money should never be refused!
It's a start and will let you get in the habit of paying into a pension.

atush

Not to mention what you would do without having/starting a pension at all Unless you plan to work until you are 100?

Always take the free money and always pay in enough to get the max the employer will put in.

Youknowme_2

Thanks for replies, just for clarity I do have other retirement income plans.

I might look into options for a SIPP which I think employer would pay into and would give me further flexibility going forward.

DesG

Is it not possible to transfer to a SIPP when you leave?

Cheers, Des.

atush

Youknowme wrote: »

Thanks for replies, just for clarity I do have other retirement income plans.

I might look into options for a SIPP which I think employer would pay into and would give me further flexibility going forward.

The reason we would assume you didn't have any pensions is this:

I have no other pensions at present.

If you have other funds you would use for retirement, that is great. But if they aren't in a pension, they aren't really retirement funds as money in savings accts etc can be spent. Claimed by the courts. Taken into acct for means testing benefits. Pensions are safe from these things.

Youknowme_2

DesG wrote: »

Is it not possible to transfer to a SIPP when you leave?

Cheers, Des.

Would this be common for this to be allowable?

Lokolo

Youknowme wrote: »

Would this be common for this to be allowable?

Yes it is common.