Opting out of pension

[Deleted User]

The way things are going it is even more important to plan and contribute to retirement. Even pay into daughters PP. Cheers

enthusiasticsaver

I am going to add my voice to the 100% posters advising you not to opt out.

You are in your 20s so have your whole working life ahead of you. If you make good financial choices now this will have a massive impact on your lifestyle in later years. You are most unlikely to die before retirement although if you have an unhealthy lifestyle it may not be a very happy or healthy retirement. Short term thinking is never good.

£84 in your pocket means you are turning down the contribution from your employers and the tax relief which if you remained in the pension scheme would probably be worth £100s each month. Retiring early will never be an option for you and you will be scrimping and scraping just as you have time to do things you may have always wanted to.

bigadaj

atush wrote: »

But why post here and ask for advice and then trash/ignore it?

It is pretty much unanimous apart from Big that the OP should stay in the pension. Anyone not taking that into acct shouldnt ask in the first place.

Because they want to justify their position, are looking for some support and then arent happy with others opinions.

I don't like the haranguing nature of the thread, the OP is an adult and can make a decision, as I've stated before they should join the pension but if they don't it's their choice, personal responsibility is a rare concept now.

People frequently and regularly make far more stupid choices than to not join a defined benefit public sector pension scheme, so on the scope of stupidity it's probably in the quite stupid rather than moronic bracket.

somethingcorporate

bigadaj wrote: »

Because they want to justify their position, are looking for some support and then arent happy with others opinions.

Exactly this.

They want support for their ideas and even when it isn't forthcoming they still go ahead and do it anyway.

They aren't here for debate or listening to others.:D

somethingcorporate

Malthusian wrote: »

And what alternative do you suggest that usually works on science deniers and Donald Trump? Putting children on the naughty step isn't an option on an Internet forum.

In any thread like this the responses to the OP cover the entire range of the spectrum of tact, from softly-softly through coldly logical to blunt. The OP can choose whichever they find most persuasive. Or, if the OP just wants to be told what they want to hear, they can go with the responses saying "Do it, it'll save me council tax".

Exactly - nothing will work because they have confirmation bias. They will pick the arguments they agree with and ignore everything else.

This kind of thread happens all the time, the OP doesn't come to get an opinion but simply validation. Anything that disagrees with their initial idea gets ignored.

dunstonh

I don't like the haranguing nature of the thread, the OP is an adult and can make a decision, as I've stated before they should join the pension but if they don't it's their choice, personal responsibility is a rare concept now.

Its one thing being an adult. Its another making adult decisions and being responsible like an adult.

People frequently and regularly make far more stupid choices than to not join a defined benefit public sector pension scheme, so on the scope of stupidity it's probably in the quite stupid rather than moronic bracket.

We are probably talking a loss in the hundreds of thousands of pounds here to save about £84 a month. There are not many financial decisions they can make in their life that are going to be as bad as that.

NIMBUS10

For what it's worth I (many years ago) nearly bailed out of my DB scheme.....and indeed I did in a way because when I was made redundant I transferred to pension to Lloyds private pension (they were my bank and this was in 1988) to which I added to each month.


Luckily two things happened, firstly I was re-employed after 18 months by the same company...different part of the UK though and for some reason my Lloyds private pension was looked over by them and they said I would be better off if they transferred it back into my original scheme and they increased to transfer value to what it would have been had I left it in the scheme.


When I was re-employed it was on the understanding that it would be under continuous service specifically for pension purposes, however as I was employed on 6 month contracts for a year or so I was unable pay into the pension. I did get a permanent contract and so restarted paying in to the scheme.


Fast forward 16 years and I unexpectedly had a stroke at 49. After 6 months on full pay I had to see the company Dr who rightaway said "I think we should retire you". I left with an ill health pension which was enhanced as though I had completed 40 years service....I also for some reason got redundancy pay too!


So really had I left the pension all those years ago and seeing how life turned out I would certainly not be as comfortable as I am now. I would say to the OP stay in the scheme at all costs.

darkcloudi

I was in the same situation as you, at the time I did take the money as oppose to putting it in the pension. Till this day I regret it as I lost out on the 6% the company was contributing and the tax relief on my contribution.

Personally, if I was to go back in time I would put it in to my pension. I lost out 2 years of pension contributions due to this.

If you put the money in a savings account you have more reasons to spend it as its more accessible, with the pension at least this money is put to one side and you know you have something when you retire.

OldBeanz

dunstonh wrote: »

...

We are probably talking a loss in the hundreds of thousands of pounds here to save about £84 a month. There are not many financial decisions they can make in their life that are going to be as bad as that.

The most obvious one is to smoke and the OP hits that jackpot as well

Alexland

I missed an employer pension contribution for the month of September 2003 and it still bugs me. I joined a company and was late in completing the pension paperwork. With growth it would have been worth about £500 more in my pot by now and maybe £1000 when I retire. Annoying. I can't imagine how intolerably frustrating it would have been if I had opted out completely!!