Do you pay into a pension?

starfish1975

I have paid into a pension for 14 years... I pay 5% of my salary.. Pre tax.. And my company matches it. I am 38 now.

Brightspark87

I understand this change makes a big difference to the DFD but many work place pensions do not let you leave and then rejoin within a couple of months as the huge amounts of paperwork necessary mean they will not process it for you. Good luck though

alex102

It's pointless paying onto a pension... the interest rate is too low to see any meaningful return on your investments (has been for years).

We're all sleepwalking into a pension nightmare.

katejo

antonia1 wrote: »

I have to make a decision and would like some help. If I pause paying into my pension scheme I will move my debt free date from August 2014 to June 2014. But my pension scheme is pretty good, and I'm nervous about stopping paying as it doesn't make a huge difference. I also have no option of making up the difference at a later date.

I'm still in my 20s (just) and so won't be needing my pension any time soon.

So, do you pay into a pension, or do you think a pension is more like a savings thing and should be paid when you are debt free?

That doesn't sound a big difference at all (August to June). I would carry on. I started paying into my pension scheme when I was 27 (now 51) and I am really glad that I did. The longer you leave it, the more expensive it becomes.

moohound

I pay in just under 10% and my employer matches it

somethingcorporate

I pay in 12% and my employer adds in another 9%.

I think you'd be foolish to knock only 2 months off your DFD. Once you're out it will take a lot of willpower to go back in, plus you lose those employer contributions so just stick with it.

I do genuinely feel sorry for those not able to make the sacrifices required to pay into a pension whilst they are working, they will be the ones living in poverty when they are older and need the home comforts more than ever.

On_my_way

Yes, I have had mine for 5 years, since I was 27 and employed in the NHS.

While I could do with the money now to help clear my debt it is really, really important to save for the future...that money could easily be swallowed up elsewhere.

Like you, I have thought many times about whether to stop paying in for a while but every time have continued paying.

JasX

Given how young you are now every £ you pay in at such an early age will have benefited from a huge compund interest multiplyier by the time you use it.

I think the common example given is Person A pays in £200 per month for a pension from age 20 to age 30 then stops completely, Person B delays their pension until age 30 then pays in £200 per month for the entire rest of their working life till age 65.

Person A still has the bigger pension come age 65.

The fact you are in your 20s is a very very strong argument to keep up the pension payments, especially as the DFD basically won't change by more than a handful of weeks.

Oh to answer the question yes I do -> 15% of pre-tax salary into a 1/35ths final salary scheme for the last 10 years since I was 23 (paying in the maximum possible as I'm particularly paranoid it'll close at some point)