Take workplace pension, drop personal pension?

barrymung

Hi All,


Currently I have a personal pension into which I pay £100 pcm. I receive no employer contribution towards this..


However, my employer is introducing a workplace pension. I'll pay £75 but my employer will put in £60, making a total contribution of £135!


I can't afford to do both. So, do I stop paying into the personal pension and go with the workplace one (Saving £25 per month but getting £135 in my pension pot) or do I continue with the private one (£100 going into the pot)


For what it's worth I'm mid 40's, the private scheme is a Canada Life one and the Workplace one is NEST.

xylophone

If you don't join the workplace scheme you are effectively refusing a salary increase, so it would seem foolish not to participate?

If the Canada Life scheme is not a stakeholder, might it be worth considering transferring it to a cheap stakeholder and making additional contributions if and when you can afford it?

https://www.gov.uk/personal-pensions-your-rights/stakeholder-pensions

http://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/

mgdavid

the obvious option is to take the company pension scheme, and drop the CL payment to £25 per month.

atush

I agree with MG, take the new pension and keep the old one too, with as much as you can afford?

xylophone

drop the CL payment to £25 per month.

Provided that CL accept this low a contribution?

Perelandra

xylophone wrote: »

Provided that CL accept this low a contribution?

If they don't, it may be possible to put the whole £100 into the work pension?

atush

I agree, he should certainly not lower what he is already paying.

barrymung

xylophone wrote: »

If you don't join the workplace scheme you are effectively refusing a salary increase, so it would seem foolish not to participate?

If the Canada Life scheme is not a stakeholder, might it be worth considering transferring it to a cheap stakeholder and making additional contributions if and when you can afford it?

https://www.gov.uk/personal-pensions-your-rights/stakeholder-pensions

http://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/

My thoughts re the salary increase. Don't know at this stage whether it's a stakeholder or ot.

barrymung

atush wrote: »

I agree, he should certainly not lower what he is already paying.

At the end of the day MORE would be going in than at the current moment in time, but it would cost me LESS in real terms.

I don't have any option (As far as I know) to up the contribution to the workplace pension.

Yes, I *could* continue to pay the £20 into the CL pension, but I could really do with that £20 now..

atush

We'll more is going in for sure, but certainly not enough. Almost all work pensions allow you to put more in.

Find out?

mgdavid

barrymung wrote: »

.....
Yes, I *could* continue to pay the £20 into the CL pension, but I could really do with that £20 now..

It's £25 not £20.
What other pensions do you have?
To be in mid-forties and wanting to reduce the amount you are putting into pensions sounds warning bells to me. When do you plan to retire, and have you worked out what pension income you will need to live on in retirement?