employer contributions

Beverley

I'm 60 and recently went back to work after a 5 year break. I'd stopped working in order to spend time with my husband but he passed away 3 years ago.

I have half of my husband's private pension and a VERY small pension pot from my previous employment. I remember being told that you should always take a pensioon contribution from your employer because it's free money so I joined the pension scheme when I started my job earlier this year. However, a couple of people have said that, at my age, it's a complete waste of my money to pay into a pension pot. Have I misunderstood something? Anyone know how I can find out?

Thanks

molerat

You are not the one that has misunderstood anything.

Stop listening to people that don't know what they are talking about

Why do they think it is a waste of money ?

As you said, free money.

And a tax efficient way of saving for your retirement.

And whilst on the subject of pensions, have you checked your state pension forecast ?

Marcon

Beverley said:

I'm 60 and recently went back to work after a 5 year break. I'd stopped working in order to spend time with my husband but he passed away 3 years ago.

I have half of my husband's private pension and a VERY small pension pot from my previous employment. I remember being told that you should always take a pensioon contribution from your employer because it's free money so I joined the pension scheme when I started my job earlier this year. However, a couple of people have said that, at my age, it's a complete waste of my money to pay into a pension pot. Have I misunderstood something? Anyone know how I can find out?

Thanks

There are some really stupid people about - and what a pity they seem to be keen to share their own hopelessly ill-informed views with sensible people like you.

Ask them to specify exactly why paying contributions to a pension scheme (and getting tax relief on your own contributions) + 'free' money in the shape of an employer contribution is a bad idea, especially when you are at an age where you can access the funds as soon as you wish, with part of the 'pot' being tax free (if it's a 'defined contribution' scheme, which is likely, then you can take 25% tax free) with the rest added to your taxable income.

Dazed_and_C0nfused

Beverley said:

I'm 60 and recently went back to work after a 5 year break. I'd stopped working in order to spend time with my husband but he passed away 3 years ago.

I have half of my husband's private pension and a VERY small pension pot from my previous employment. I remember being told that you should always take a pensioon contribution from your employer because it's free money so I joined the pension scheme when I started my job earlier this year. However, a couple of people have said that, at my age, it's a complete waste of my money to pay into a pension pot. Have I misunderstood something? Anyone know how I can find out?

Thanks

You've got another 15 years where you could be building up a pension and potentially 25 years on top of that for it to help you fund your retirement.

Getting free money from your employer seems a no brainer.

Not taking it is basically asking for a pay cut, why would you do that 🤔

Marcon

Beverley said:

Have I misunderstood something? Anyone know how I can find out?

I think the answers above have given you all the info you need to ignore these idiots!

xylophone

Have you checked your state pension forecast?

https://www.gov.uk/check-state-pension

Brie

What it is is that some people manage to listen long enough to talk about pensions to hear "start as early as possible as that way you can build up a big pot for retirement".  And then they take that to also mean that starting a pension late won't build up a big pot and therefore is a waste of time.  And as others have said they're idiots as they miss out on the free money from the employer bit. 

For what it's worth I started a new very part time job about 3 months before my 65 birthday.  And I joined the pension scheme.  It's only Nest and the contribution levels aren't huge but it will be enough to maybe fund a really good dinner out or maybe even a weekend away when I retire in a couple of years.  You'd take that as a lottery prize so why not take it from your employer? 

Edit - just checked and I've got a fund of over £1k in there.  

dunstonh

However, a couple of people have said that, at my age, it's a complete waste of my money to pay into a pension pot. Have I misunderstood something? Anyone know how I can find out?

No you are right. They are wrong.  Free money is free money whether you are aged 20 or 60.

Obviously you are not going to have 40 years of building up a fund but the pension will beat any savings account or ISA or anything else you could use.

Well done for checking here and not falling for bad information from clueless people.

Bear777

Beverley, if you have potentially 15 years worth of contributions ahead of you , then you have the opportunity to create a pension fund that will set you for the rest of your life. 

To give you an example I started paying into a DC pension some 16 years ago. Between my employer and I the average annual investment has been about £11.5k gross. I now have a fund worth not far off £550k. 

The amount I’ve managed to invest over the time may be more than you can manage, but anyone saying that it’s too late and not worth it knows little to nothing and are not worth listening to. 

It’s the most tax efficient and best way to save money currently available, and its nearly more important the closer you are to pension age when that’s likely to be the next big financial scenario in your life your likely to face as hopefully kids are paid up and possibly mortgage payments are less of a concern.