Finding it impossible to opt out of auto-enrolled pension

adolphin10

OP have you had a deduction from your wage for pension as yet? In the letter does it state you have been enrolled already or that you will be enrolled on a future date in the next couple of months i.e. you are in the postponement period. Also what pension provider does the letter say you are with. The majority of opting out does need to go through the pension provider not the employer as this removes the opportunity for the employer to be accused of coercion as they are not involved. If you have not received a welcome pack from the pension provider then it is possible that you have not actually been enrolled yet and so the opt out period has not yet started meaning you cannot yet opt out.

hyubh

sangie595 wrote: »

I'm perfectly aware of your desire to have a go at me every chance you get. So please spit it out. In what way do you suggest that the state pension will provide for, or even exist, in the future? This is not about a "pay cut" - the employers contributions will never be given to the OP. And their own contributions are not a pay cut, but an investment for their own future.

The OP is being foolish if they think that the next couple of generations will pay for their retirement. It was never a luxurious prospect anyway, but those days are gone. Save for your own retirement - or live in poverty. That's the choice...

I see that the initial post of yours that I objected to (in which you used a rather nasty epithet) has been removed, along with my original response to the above. As the epithet no longer appears, I'll just restate how this is a thread where we are not, in fact, disagreeing about either the facts of the matter (i.e. that opting out is something to be done via the employer not the pension scheme directly), or what the OP should be considering (i.e. not opting out in the first place).

hyubh

adolphin10 wrote: »

The majority of opting out does need to go through the pension provider not the employer as this removes the opportunity for the employer to be accused of coercion as they are not involved.

Well, starter pack (or equivalent) from the scheme, and the employer can't advocate or otherwise induce opting out indeed, however the actual opting-out election should go to the employer.

Savvy_Sue

tikki999 wrote: »

This feels like they want to make it as difficult as possible to make that choice.

You're right, they DO want to make it as difficult as possible - but by 'they' I mean the government, not your employer.

hyubh wrote: »

Why would 'they' want to do that? You surrendering the employer contribution is a small win for the employer.

But the employer absolutely cannot and must not encourage or advocate any employee to opt out.

One of my colleagues asked me the other day how they could opt out. I suggested reading the letter I'd just given them. "Oh I thought you could just tell me." No, I can't.

Although I must admit I had always understood that to opt out, employees had to deal with the company administering our pension, or NEST itself, and hadn't realised that employees could write to us as employer to request an opt out.

And yes, there is a period within which contributions will be refunded, but it's a short window, after which you can still opt out but won't get your contributions back.

tikki999

I totally understand that pension providers and employers are careful not to look as if they are coercing employees to opt out and when I called the pension provider I listened to a 3 minute recording basically telling me not to opt out.

I do have a letter from the pension provider and pension contribution has already been deducted. I now only have about 8 more days in which to opt out and I am away next week, hence my question on here.

I will keep plugging away at the pension provider. I think a letter making a clear statement is the next step.

I'm just perplexed as, in the past, there has been absolute clarity about how to opt out. At the end of the day, however ridiculous it is to choose to opt out, I do have a choice.

takman

tikki999 wrote: »

At the end of the day, however ridiculous it is to choose to opt out, I do have a choice.

But WHY do you want to opt out? Multiple posters have asked this but you haven't given a reason.

I'm genuinely interested why you would want to opt out?

ReadingTim

takman wrote: »

But WHY do you want to opt out? Multiple posters have asked this but you haven't given a reason.

I'm genuinely interested why you would want to opt out?

Furthermore, it's not as if the amounts are huge - here's a table to minimum employee and employer contributions - employee 1% now, 3% from April 2018, 5% from April 2019. Employer 1%, 2% and 3% respectively.

Are things really that tight that 1% is going to make a difference?!? But while your contribution might be small, it's matched by your employer - why turn down free money?

Too add perspective, the current full state pension is £159.55 per week. Could you live off that? If not, then you need to make additional arrangements, such as this. Poverty in old age doesn't sound like fun.

Don't cut off your nose to spite your face by claiming you don't agree with the principle of being auto-enrolled - it's being done for your own best interests.

Savvy_Sue

takman wrote: »

But WHY do you want to opt out? Multiple posters have asked this but you haven't given a reason.

I'm genuinely interested why you would want to opt out?

Obviously I can't speak for the OP, but my colleague who keeps saying they want to opt out says they have a house, and that's their pension. They'll sell it and downsize, maybe to a campervan. Also they've been paying into a pension plan all their working life, some of that was into 'good' (possibly final salary) plans when they were earning more than they are now. And they're closer to retirement than to the start of their working life.

What can possibly go wrong? Especially for someone who hasn't yet managed to log into their pension plan online, barely manages to login and download their monthly payslips, and expects someone to TELL them what to do rather than reading the information provided.

And a couple of our colleagues joined in with the "but it's free money from the employer you're turning down" chorus, so I've obviously got through to some of them.

I have three sons, the eldest is 30 and self-employed. I've reminded him that if HE doesn't sort out a pension, no-one else will do it for him, and I don't recommend relying on the state pension 30+ years after AE kicked in ...

And I was so proud of the middle one, who joined the company pension scheme at the earliest opportunity, and opted to do some salary sacrifice to get more in. He's just started a new job, he'll need to work out what to do because I doubt his new company runs a scheme half as good.

Youngest is still studying, so early days ...

Xbigman

I would send four recorded delivery letters to the pension provider, HR, Payroll and my immediate manager stating clearly that I was opting out. If they still don't do it then take it forward as a grievance against payroll for unauthorized deductions, then take it from there.

If you asked me for advice about pensions I would urge you to continue with one. If you have made the decision not to then that is your choice and you should ignore those posters who can't accept your decision.


Darren

sangie595

Xbigman wrote: »

If you asked me for advice about pensions I would urge you to continue with one. If you have made the decision not to then that is your choice and you should ignore those posters who can't accept your decision.


Darren

I am utterly fine with them opting out. Because I am quite positive that I won't be paying for that decision. The problem is that it is very likely that nobody else will be paying for it either...