Finding it impossible to opt out of auto-enrolled pension

Malthusian

sangie595 wrote: »

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...

People who opted out of their auto-enrolment pension will most probably get means-tested benefits 30-40 years down the line so yes you will pay for it. Same as how people who didn't pay National Insurance Contributions and don't qualify for a State Pension (or have any other means) get Pension Credit.

The OP sure is angry about being given free money. They can send me a tenner if it would help calm them down.

Undervalued

Malthusian wrote: »

People who opted out of their auto-enrolment pension will most probably get means-tested benefits 30-40 years down the line so yes you will pay for it. Same as how people who didn't pay National Insurance Contributions and don't qualify for a State Pension (or have any other means) get Pension Credit.

The OP sure is angry about being given free money. They can send me a tenner if it would help calm them down.

He only gets the "free" money if he is financially able to make his employee contributions now. If he can't, for whatever reason, then he loses the free money in the future but makes ends meet for now.

In a way it is like having to pay over the odds for washing powder if you only have enough money to buy a small box.

hyubh

Undervalued wrote: »

He only gets the "free" money if he is financially able to make his employee contributions now. If he can't, for whatever reason, then he loses the free money in the future but makes ends meet for now.

Leaving aside the fact we don't know whether this reasoning applies to the OP or not, pension savings are specially protected when someone is in debt... so it's not obvious that pension savings specifically should be cut back, if something else could be, for someone who is forever close to falling into debt.

In a way it is like having to pay over the odds for washing powder if you only have enough money to buy a small box.

Perhaps in extremis, but beyond that, it would be better to start planning ahead to avoid the escalating cost of repeatedly buying short-lasting small boxes over long-lasting big ones. Which is a consideration that may by analogy apply to the OP, who has implied they have opted out of a workplace pension repeatedly...

TELLIT01

takman wrote: »

Let's say for example you were talking to someone and they asked you where the best place to get travel insurance from was for a holiday to the USA. A normal reply would be to tell them where they could look for insurance and then ask where about's they were going. If they then replied "sorry but i don't see how it is relevant to the question" i would find that a very strange response, but presumably you would find that normal?.

A far more accurate analogy to the way this topic has gone would be for somebody to ask where the best place was to get travel insurance for the USA, and the reply to be that they are stupid to be considering going to the USA in the first place. The other very obvious difference is that a follow up question about a holiday is an entirely different matter to digging into somebody's financial situation, which is where a question regarding opt out was heading.

takman

TELLIT01 wrote: »

A far more accurate analogy to the way this topic has gone would be for somebody to ask where the best place was to get travel insurance for the USA, and the reply to be that they are stupid to be considering going to the USA in the first place. The other very obvious difference is that a follow up question about a holiday is an entirely different matter to digging into somebody's financial situation, which is where a question regarding opt out was heading.

Well if you read my posts I have simply asked because I was generally interested in the answer. Another person has also said in this thread that they opted out and why and nobody has criticised them for it.

Also I will say again as they are anonymous analysing someone's ones financial situation isn't a bad thing and it happens all the time on the Debt Free forum which helps them alot, but that's not why I asked them.

Also asking the reasons behind a decision can really help people. I've seen it plenty of times people asking a specific question and when you actually understand the reasons behind it you may be able to offer tips that they wouldn't have gotten by simply answering the original question. So asking the reasons why they opted out isn't a negative thing.

They also seem very stressed and frustrated that they are unable to opt out. So if they shared the reasons why it could actually turn out they are better staying opted in. Then people could justify why it is better in their situation and they wouldn't feel so annoyed anymore.

ReadingTim

Furthermore, as the OP hasn't mentioned who his employer or pension provider is, the specific answer can't be given to the question with any greater degree of accuracy than "ask HR"; for it is only HR, and whatever pension documentation which exists in company literature either in print or online, that can answer the question for sure.

In the absence of a definitive answer, everyone else can only speculate on what you might be able to do, or discuss why doing it might not be such a good idea in the first place - which is exactly what's happening here.

Finally, it's not clear whether the OP's HR department doesn't know the answer, hasn't explained the answer very well, or that the OP simply doesn't like the answer he's been given, and hopes he can find a more agreeable one here.

badmemory

takman wrote: »

Another person has also said in this thread that they opted out and why and nobody has criticised them for it.

No-one criticised it because if I remember correctly is was a sensible, logical decision, obviously thought through. We have no idea if yours is (or the OPs is) because you/they refuse to tell us. That is the difference. But it is after all their choice and their's? alone. Just don't expect me to fund your retirement.

Savvy_Sue

Malthusian wrote: »

People who opted out of their auto-enrolment pension will most probably get means-tested benefits 30-40 years down the line so yes you will pay for it. Same as how people who didn't pay National Insurance Contributions and don't qualify for a State Pension (or have any other means) get Pension Credit.

Call me cynical, but I have no confidence that 30-40 years down the line there will be means-tested benefits available at the same kind of level as they are now, ESPECIALLY if someone has opted out of making provision when they could have done.

Same with free bus passes, free TV licences, and the Winter Fuel Allowance. I'm not expecting to benefit from any of those, and for me that's on a much shorter timescale.

Which is why I've 'reminded' my self-employed son that if HE doesn't sort out a pension, no-one else is going to do it for him!!!

takman

badmemory wrote: »

No-one criticised it because if I remember correctly is was a sensible, logical decision, obviously thought through. We have no idea if yours is (or the OPs is) because you/they refuse to tell us. That is the difference. But it is after all their choice and their's? alone. Just don't expect me to fund your retirement.

What ??? It would appear that your username suits you very well :rotfl: .

You must have me confused with someone else because I havn't refused to tell anyone anything!.

badmemory

takman wrote: »

What ??? It would appear that your username suits you very well :rotfl: .

You must have me confused with someone else because I havn't refused to tell anyone anything!.

You are correct I did & yes my username does indeed suit me, which presumably was why I chose it, but that was a while ago & I must have forgotten.