Workplace pension, should I opt in or out?

shiwen55

Oliver1191 wrote: »

You will come to regret it if you don't give yourself some security for the future.

I really felt what you said, it's true.


I do think of changing jobs, but not much. I came back from coma in 2000, took me years, having disability, to reach here, 2018. Not to be inform in 2017, I was diagnosed with another disability. That's '2x' and few other medical problems that need constant monitoring.


Well, I'm proud of myself and of what I have achieved, especially, finding my true love and getting married.


You're right, it is tight and difficult, but it pays back one day, we don't know what, but yes, I'd rather to keep this. I can give this to my wife, maybe, long due wedding reception and presents, which I am deeply saddened by remembering how limited I was in doing these things.


I will keep this, thank you.

shiwen55

Brynsam wrote: »

Good luck in 20 years time when there are no state benefits....

I assume you're a funny guy or very young and full of health and energy.

Brynsam

shiwen55 wrote: »

I assume you're a funny guy or very young and full of health and energy.

Neither - just saddened to read posts by someone so short-sighted.

Oliver1191

I really felt what you said, it's true.

I'm glad I was able to get through the emotion - always hard when writing.

Ignore some of the comments people have written on here. A lack of kindness is not to their merit. Equally, there is no correct way of doing things and only with hindsight will we know what the best option was. No one can tell the future.

It sounds like you've had some pretty tough challenges to overcome. No one on here will know what you've been through.

It sounds like you've come a long way too.

Getting married is a big achievement - congratulations!

Maybe, you need to take a different approach to suit your needs? Perhaps if you sat down with your other half and rather than work your finances separately, see your combined incomes and expenditures as one.

That way, if you're both on really low wages, you'll be able to make the most of your situation. This is not an easy quick-fix. It takes ages to learn new ways to reduce your costs e.g. one trick we try to do is to pre-cook lots of our meals in advance once we've done the weekly shop. 99% of shopping is done in Aldi too!

Just a thought, but why not start a LISA - one day you might be able to raise a deposit to buy a home (it's worth remembering that there may be cheaper places in the country - it's why I left London as I was screwed there). The only draw-back with a LISA is it may limit your benefits in the future (if you get some for disability reasons).

Either which way, please do the pension...it may be something that you could leave to your wife should you not be there one day (though, I hope you will be together for a very long time).

If you want to have a guess at what your pension could be worth in the future, have a play with this: https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

I would suggest a growth rate of between 5 - 10%

kidmugsy

shiwen55 wrote: »

What's your Cons and Pros of having a pension, knowing you'd be on state help in your retirement?

If you expect to be quite happy spongeing off everyone else, why indeed bother with a pension?

PeacefulWaters

shiwen55 wrote: »

Your reasoning is void, I'm afraid. You are only guessing what cuts I can do or cannot do. Please read my reply to other post, thank you.

Feel free to post an honest statement of affairs and I'm sure others will assist you in making the savings needed to free up a few pounds.

There may even be a consensus that it's not possible. Unlikely though.

JustAnotherSaver

I can understand your uncertainty

shiwen55 wrote: »

I bet that famous lump sum would not even get us a pint of milk !!!

Who knows. Why don't you opt out (rightly or wrongly i get the impression you want to) and then let us know how it works out for you.

One thing you can bank on though in amongst all this uncertainty .... put nothing in & you'll know what you'll be getting out

Starting at my age i've left myself a hard task to live a comfortable retirement.

Still, i'd rather rely on myself & take that task on than make it an impossible task & rely on the state.

JustAnotherSaver

PeacefulWaters wrote: »

There may even be a consensus that it's not possible. Unlikely though.

Agreed!

I had someone at the end of last year talking about how they couldn't afford this & couldn't afford that & they were basically stressed at life, struggling to make ends meet. They were 'doing all they could'.

I said i bet you're not & i bet i could sort out your issues for you.

After they got over being offended they realised....

* they didn't NEED to buy their food at the corner shop every day of the week for work dinners (lunch for you southerners)
* they didn't NEED to drink at the end of the working week every week and that there are other ways to 'unwind' and 'relax'
* they didn't NEED to buy big name label food every week. Try the cheaper supermarket own brand, you may like it
* they didn't NEED to smoke and take their drugs. I'm sorry but it's a choice, nobody puts a gun to your head
* they didn't NEED to have expensive dinners out at the weekend every weekend

So on & so forth.

The alcohol one was a funny one. "I can't not have a drink". Why not? Will you die? No? Well i guess that means you actually CAN do without then doesn't it. Instead of every weekend then how about every other or every third or once per month? These are all options but you just choose the option to have it every week ... which contributes to you being where you are right now.


I know it sounds preachy but some times the hand holding & shoulder stroking approach just doesn't work.

Tabbytabitha

shiwen55 wrote: »

Still not convincing, I'm afraid.


The fact they'd reduce benefits for pensioners is a different story. They're already living on nothing, let alone take back more from them.


I can understand how difficult is to explain to some what 'poor' is. All dreams, one day when you reach 65, you'd have a lump some!! I bet that wouldn't make any difference then, we need that now.


I don't have to wait for another 25-30 years to get a lump some of maybe 8% contribution currently. I could do more now with that 8%, knowing I can build a better life for myself, than putting somewhere, hoping to get a lump sum at the end. No-one knows what life would be like in 2050 UK!!


Thanks anyway.

Pensions and benefits for pensioners are very generous now - don't expect them to be so in the future!

dunstonh

Taken from the Govt impact assesment:

The single-tier pension: a simple foundation for saving


What are the policy objectives and the intended effects?

To deliver a simpler and fairer state pension that provides a better foundation for saving and is sustainable for future
generations. The intended effects of state pension reform are:
- individuals have a better understanding of the state pension system, including how much they can expect to receive
and therefore engage more actively with planning for retirement;
- inequalities of state pension outcomes within the current system are reduced;
- individuals have reduced interaction with means-tested benefits in retirement;
- the state pension system is more affordable and sustainable in the long-term.


--
Those last two points are the bit about reducing benefits. Govt projections show all levels of benefits falling as benefits are removed (such as savings credit) and the qualifying criteria on others are not met (such as council tax and housing benefit) because the single state pension amount takes them to the baseline level.

The expectation is that the majority of people that do qualify for benefits will be those that do not have 35 years of qualification under the single state pension. So, if you are on track for 35 years qualification, you really shouldn't be planning to be in receipt of much in the way of benefits.

By the 2040s, overall eligibility for means-tested benefits falls by around 3
percentage points, or around 350,000 benefit units, as a result of the single-tier reforms.