Should i stay in? 25 March 2019 at 8:41PM edited 30 November -1 at 1:00AM in Auto-enrolment 5 replies 3.4K views

flyeruk

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.

JoeCrystal

Absolutely, you get the employer's contribution as well. Free money!

LHW99

And tax relief!

AnotherJoe

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.

flyeruk

Thanks for the replies.Really wanted to know,ehts it going to be worth to me,when i retire?

LHW99

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.