Is it worth it?

mark45

Please correct me if I am wrong.

My current employer has auto-enrolled me into a pension plan with Standard Life.

My employer pays contributions. So far judging from the YTD on my last wage slip they have paid £55 and I have paid £27.

My question is this: why is everyone leaving or "opting out"

> If my employer is contributing to my pension, this should be seen as a wage increase?

> I plan to leave current employer realistically within 2-3 years. Should it be worth keeping the pension going on until then? I'm guessing new employer = new pension plan?

Currently my plan is to save/ISA minimum £2,000 per year. (I am 23), have been saving since I remember.

Sorry for silly questions, it all seems very confusing even after reading some guides.

dunstonh

My question is this: why is everyone leaving or "opting out"

They are not. The released figures so far so that the majority of people are not opting out.

For the vast majority of people, opting out would be extremely stupid and short sighted. Nothing else will beat free money from the employer.

Old_Slaphead

Not a huge number have opted out so far but I suspect that rates will rise as the staging date progresses to smaller companies.

Where employers are initally paying the minimum (ie 1% of amounts above £5668) that equates to just £70pa employer contribution in the case of a minimum wage employee - plus a further 1% from employee. Many will feel that this is not 'material'.

Over the next few years as the employers contribution rises I suspect that more employees will decide to opt back in and people realise that state pensions will be lower in the coming decades.

atush

mark45 wrote: »

Please correct me if I am wrong.

My current employer has auto-enrolled me into a pension plan with Standard Life.

My employer pays contributions. So far judging from the YTD on my last wage slip they have paid £55 and I have paid £27.

My question is this: why is everyone leaving or "opting out"

> If my employer is contributing to my pension, this should be seen as a wage increase?

> I plan to leave current employer realistically within 2-3 years. Should it be worth keeping the pension going on until then? I'm guessing new employer = new pension plan?

Currently my plan is to save/ISA minimum £2,000 per year. (I am 23), have been saving since I remember.

Sorry for silly questions, it all seems very confusing even after reading some guides.

yes, this is in effect a wage increase

yes, new job will most likely mean new (hopefully better) pension- somehting for you to look for when going for/accepting a job

Your plan to save is good. But once you have saved enough for yur short term goals (ie emergency pot of cash, house deposit, hoiliday etc) then you should look to S&S isas too.