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Should i stay in?

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flyeruk
flyeruk Posts: 4 Newbie
First Anniversary First Post
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.

Comments

  • JoeCrystal
    JoeCrystal Posts: 3,317 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Absolutely, you get the employer's contribution as well. Free money!
  • LHW99
    LHW99 Posts: 5,199 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    And tax relief!
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    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.
  • Thanks for the replies.Really wanted to know,ehts it going to be worth to me,when i retire?
  • LHW99
    LHW99 Posts: 5,199 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    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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