Workplace vs private pension

Paul_Herring

mullygrubber wrote: »

Thanks very much for all your replies.

I have had a look and it does seem to be a 'salary exchange' arrangement from my gross salary before I have paid tax and NI. I also vaguely remember the adviser saying that my employer passes on their full relief to me but I'll double check that. However, regardless of that, I am presuming this means it is safe to forget opening my own private pension and contribute as much as I can into this scheme?

If that's entirely accurate, then yes.

You'll be getting the 12% NI saving that wouldn't normally apply in net-pay or relief-at-source.

(Plus whatever the employer gives you from their 13.8% saving.)

Albermarle

Be aware that within a workplace ( or private pension ) you should have a choice of funds for your money to be invested in . If you do not make any active choice it will go into a medium risk default option fund . This is not a big problem but you might want to start looking in to what other options there are. Especially as the fund size increases.

Malthusian

AnotherJoe wrote: »

Almost certainly, yep. Only reason not to do it would be its invested in a lousy choice of funds. But they'd have to be really bad.

And the best course of action would still be to pay your contributions into the employer scheme, then transfer out to a private pension on a regular basis, having secured the extra tax relief and employer contributions if relevant.

If they were that bad - by which I mean unsuitable for the majority of their members - a call to the Pensions Regulator would be in order.