10 years to go- Worth joining work pension?

jamesd

It's well worth doing because he roughly doubles his money just from the employer contribution.

It's usually a bad idea to use an annuity for the income assumption. If he wants guaranteed income he should know that deferring the state pension increases it by 5.8% for each year of deferral, increasing by CPI each year for life. That's higher than he's likely to get from an annuity, even one enhanced due to ill health. It's around twice as much as an RPI inflation-linked standard annuity would pay at 65 today.

He doesn't even have to look at it as ten years worth. From age 55 it's all available. he might be able to transfer out of the scheme and take it out sooner that way while still working for the firm. If he can, he can view pension contributions as just a form of saving, helped along by some tax relief.

If he can't transfer out he can in addition make contributions to a personal pension and use that as a savings scheme.

johnaka

it worth it as your boss is giving you half.
you wouldn't get that in a saving account not even ISA.
£50/£60 is better than nothing near enough £600 a year.
it'll keep your car on the road.

FatherAbraham

buel wrote: »

There was an initial charge of one full monthly contribution.

That sounds like an astoundingly high initial charge. Are you sure?

Warmest regards,
FA