Is it worth doing workplace pension

benny123

I am about a year away from retirement .
I have option of doing workplace pension ( Nest ), not sure if worth it working part time and so near to leaving ?
Grateful for any advice
Thank you

ffacoffipawb

benny123 wrote: »

I am about a year away from retirement .
I have option of doing workplace pension ( Nest ), not sure if worth it working part time and so near to leaving ?
Grateful for any advice
Thank you

Free money is free money. And you can probably cash it in as a small pot when you retire.

AnotherJoe

Its not like you are 18 and the free money cant be taken for 50 years, you can take it when you retire, eg pretty much immediately. Why would you not want that even if its just a couple hundred quid?

Marcon

Every little helps...of course it is.

jamesd

Yes.

You should also make pension contributions that gross up to your whole gross pay for the year minus the NEST part from work. This assumes you'll have enough to live on and have annual allowance and lifetime allowance available.

atush

Of course you should join.

And you should consider using savings to max your contribution up to 80% of your earned income for the year.

GibbsRule_No3

I am using my work stakeholder pension scheme as a savings plan (already have access to my main lifetime pensions, now working PT) will take it all as a lump sum when I do leave after my SP kicks in, until then it is free money. Wondering from some of your replies if I need to look at asking to put even more in, when the SP kicks in, rather than open a savings account and put the SP in that?

MallyGirl

You can only contribute earned income to a pension - pensions / SP don't count. If you are still earning then you can put the lot in a pension (subject to a few restrictions based on the method of contribution).

GibbsRule_No3

MallyGirl wrote: »

You can only contribute earned income to a pension - pensions / SP don't count. If you are still earning then you can put the lot in a pension (subject to a few restrictions based on the method of contribution).

Yes, still earning. £1000 a month take home from my job, so could I in theory, ask them to put £500 extra into the Stakeholder Pension from that pay and use the SP to cover that money? They are already at the limit of matching but would I pay less tax? SP won't gain much interest in a bank or building account.

MallyGirl

absolutely