Change of pension advice needed

sheslookinhot

davnav said:

I've also told my company to remove me from my current 1/60th care pension aswell because the ever risising living costs.

Please reverse this course of action as soon as possible. It should be your top priority on returning to work.

bolwin1

davnav said:

Thanks for the input but been really busy to get back to the post. 

Current situation, I accepted to move to salary sacrifice, but when the forms arrived to sign, I seen  the figures and have now opted out as they wanted me to take £4300 reduction from my top line, this would mean taking home same money as a none trade person.

I've also told my company to remove me from my current 1/60th care pension aswell because the ever risising living costs.

So At present I will be without a pension, but I've asked if there's a smaller %rate pension available, if not then no pension at all 

Probably the worst financial decision you will ever make. 

davnav

sorry for my impulse decision to scrap both pension choices, as Ive stated earlier im not good pension wise, the information i received about the new changes was done over a teams video call, when asking for advice i was told they cant advise me on which would be better.

they said to seek financial advice which i didn't, my bad.

If this was you which option would you pick and why

option 1 stay on the current 1\60th and pay the new percentage  of 16.5  from my current 11.5%

option 2 ask for the salary sacrifice again and take the reduction of  £4300

big thank yous all for your time and effort

its much appreciated

Notepad_Phil

davnav said:

If this was you which option would you pick and why

option 1 stay on the current 1\60th and pay the new percentage  of 16.5  from my current 11.5%

option 2 ask for the salary sacrifice again and take the reduction of  £4300

Isn't option 2 just opting back into the 1/60th pension and then paying the contributions via salary sacrifice?

Personally I'd definitely opt back into the pension, and if I was given the choice I'd pay my contributions via salary sacrifice.

The reason why is that the 1/60th pension is a great scheme and is a great means of setting you up for the possible 20 to 30 years of retirement that you will hopefully enjoy. And paying the contributions via salary sacrifice is the cheapest way to pay for them.

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Edit - for the avoidance of doubt, my personal choice would be to opt back into the 1/60th CARE pension. Whether that is by salary sacrifice is unclear (see below).

Dazed_and_C0nfused

Notepad_Phil said:

davnav said:

If this was you which option would you pick and why

option 1 stay on the current 1\60th and pay the new percentage  of 16.5  from my current 11.5%

option 2 ask for the salary sacrifice again and take the reduction of  £4300

Isn't option 2 just opting back into the pension and then paying the contributions via salary sacrifice?

Personally I'd definitely opt back into the pension, and if I was given the choice I'd pay my contributions via salary sacrifice.

The reason why is that the 1/60th pension is a great scheme and is a great means of setting you up for the possible 20 to 30 years of retirement that you will hopefully enjoy. And paying the contributions via salary sacrifice is the cheapest way to pay for them.

You would opt for DC via salary sacrifice over the CARE scheme?

Notepad_Phil

Dazed_and_C0nfused said:

Notepad_Phil said:

davnav said:

If this was you which option would you pick and why

option 1 stay on the current 1\60th and pay the new percentage  of 16.5  from my current 11.5%

option 2 ask for the salary sacrifice again and take the reduction of  £4300

Isn't option 2 just opting back into the pension and then paying the contributions via salary sacrifice?

Personally I'd definitely opt back into the pension, and if I was given the choice I'd pay my contributions via salary sacrifice.

The reason why is that the 1/60th pension is a great scheme and is a great means of setting you up for the possible 20 to 30 years of retirement that you will hopefully enjoy. And paying the contributions via salary sacrifice is the cheapest way to pay for them.

You would opt for DC via salary sacrifice over the CARE scheme?

Definitely not.

I thought the salary sacrifice option was the CARE scheme but paying via salary sacrifice.

I think we need to hear from davnav as to what the salary sacrifice actually is.

davnav

I've just emailed to confirm salary sacrifice 

Thanks so much all 
Much appreciated 

Dazed_and_C0nfused

davnav said:

I've just emailed to confirm salary sacrifice 

Thanks so much all 
Much appreciated 

Brave choice, don't think too many would have gone that route if the DB option was available.

But you are in a much much better positionwith the DC pension than nothing at all.

Notepad_Phil

Dazed_and_C0nfused said:

davnav said:

I've just emailed to confirm salary sacrifice 

Thanks so much all 
Much appreciated 

Brave choice, don't think too many would have gone that route if the DB option was available.

But you are in a much much better positionwith the DC pension than nothing at all.

I thought that davnav meant that he's emailed to confirm what the salary sacrifice actually is. i.e. is it for paying the CARE pension or is it into a DC pension.

davnav

Update after agreeing to a salary sacrifice,  the company has now reduced my wage by £4300.

My Top line before off takes is now £2000 less than the average wage of a labourer in my trade.

So my top line for being a tradesmen is now paying £2000 less than the labourers working local to my area.

After taking to other  trades, they've all stopped this pension 

With this big hit is it still worth carrying on with this 1 /60th pension

Thanks for your time