Worth auto-enrolling for just over 3 years ?

deejaybee

Hi all

Only have limited details so far -  company that provides my work is commencing a pension scheme later in year, they will put in 3% and 5% to come from me, it will be administered by " SMART PENSION" ( had a google around, and they seem legit )

BUT my plan is to jack in Nov 2025 when i will be 65.  I know its always recommended to join as "free money" and like a "pay rise " etc etc but i'm wondering whether its worth it just for a 3 year period ?

I do have other pensions / savings etc in place as i have to bridge the gap from age 65 to age 66+7 months when SP is due ( on course for full SP )

So this new scheme would be a "top-up"  obviously i dont know what it would be worth by then , maybe worth it if it could be taken as a lump sum,  but as above i only have basic details about the scheme as of now.

Ta

OldBeanz

Yes. Simples. (Not advice )

atush

Always worth it

Stubod

..free money is free money whether you get it for 40+ years or 1 month??

dunstonh

 I know its always recommended to join as "free money" and like a "pay rise " etc etc but i'm wondering whether its worth it just for a 3 year period ?

Timescale is irrelevant.  What would you do with your part of the money (net of tax and NI) if you didn't join?
Spend it if its small or stick it in a savings account.

Savings account would be totally daft because the pension gets the employer contribution and tax relief which a savings account would never ever come close to.    

Absolute no brainer to join.

Dazed_and_C0nfused

Presumably this is a salary sacrifice scheme so by not contributing not only are you giving up free money you will likely be paying more tax and National Insurance than you need to.  Bonkers 😀

MEM62

deejaybee said:

I know its always recommended to join as "free money" and like a "pay rise " etc etc but i'm wondering whether its worth it just for a 3 year period ?

Any free money is worth it - certainly the amount that you would accumulate over a three-year period.  If you don't want another small pot sitting there you can transfer it to one of your other pensions when you retire.     

MX5huggy

Why are they only setting this up now? Depending on company size (employees) it should have been done between 2012 and 2018. Take them to a tribunal (or whoever enforces these things) to get the back contributions. 

Pablo7474

This question always interests me, why wouldn’t it be worth it? Is it worth being paid a salary if it is “just” 3 years? 

indiasign

Pablo7474 said:

This question always interests me, why wouldn’t it be worth it? Is it worth being paid a salary if it is “just” 3 years? 

I think a lot of people assume that money has to be put into a pension pot for a lot of years for it to accrue any significant value

Dazed_and_C0nfused

Or maybe think they need to buy an annuity?