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Should i stay in?

edited 30 November -1 at 1:00AM in Auto-enrolment
5 replies 3.4K views
flyerukflyeruk Forumite
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edited 30 November -1 at 1:00AM in Auto-enrolment
Im 61 and have been in the auto-enrolement since it started.I rent my property and earn rhe minimum wage,grossing £15,227 PA. I am paying £33.22 per month pension.
My question is,should i stay enrolled or opt out?Is it really going to be worth it in the end?
Any advice would be very much appreciated.

Replies

  • JoeCrystalJoeCrystal Forumite
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    Absolutely, you get the employer's contribution as well. Free money!
  • LHW99LHW99 Forumite
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    And tax relief!
  • AnotherJoeAnotherJoe Forumite
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    flyeruk wrote: »
    Im 61 and have been in the auto-enrolement since it started.I rent my property and earn rhe minimum wage,grossing £15,227 PA. I am paying £33.22 per month pension.
    My question is,should i stay enrolled or opt out?Is it really going to be worth it in the end?
    Any advice would be very much appreciated.


    Your question can be translated as "should i give up on getting free money from my employer ".
    Once you see it like that, you can answer the question yourself.
  • flyerukflyeruk Forumite
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    MoneySaving Newbie
    Thanks for the replies.Really wanted to know,ehts it going to be worth to me,when i retire?
  • LHW99LHW99 Forumite
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    As a rough calculation, over 5 years you would put in just under £2k.
    You would get another £500'ish in tax relief and your employer would add something around £1100.
    There would hopefully be a bit of growth too.
    If you put the money into a cash account you wouldn't earn that much interest over 5 years.
    At that point it would still be a "small pot" so 1/4 would be tax free, and the rest taxed at your highest rate - so if you only had the state pension when you retire, you could probably have the lot tax free over a couple of tax years.
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