Workplace pension

mookev

Interested in your views.my wife is 60 yrs old, and is on basic minimum wag part time hours earning aroung 7k year. her employer, a small shop is offering the new pension at 1% on the whole wage, and she hopes to stop working at her state retirement age of 66. is it worth bothering with? My view is yes as although she will only contribute £1.30 a week her employer, and the tax relief do as well. ?

McKneff

Any money her employer puts in is free money so why not. Nothing to stop yor wife from making extrs contributions too

PeacefulWaters

Something is better than nothing.

A few hundred quid when she retires is better than nothing.

boliston

If you refuse a works pension you are effectively taking a voluntary pay cut so best to take it even if short term

LHW99

And if the pot is less than £30,000 when she retires at 66, she should be able to take it all as a lump sum. 25% would be tax free, and the rest at her tax rate at the time - so she could defer her state pension for a bit and use the lump sum in the meantime, which could be all tax-free if deferring would make her a non-taxpayer.