Automatically opted back into workplace pension

littleone59

Hi I took partial retirement in 2023 and took my pension, I continue to work part time and in November 24 was automatically opted back into the pension scheme (I should have noticed) my employers contribute , however I intend to retire fully in December 2026 so will have been paying in for 2 years . Is it worth my money please , I can’t now opt out I don’t think or at lease without losing what I’ve already paid . Thank you 

Marcon

littleone59 said:

Hi I took partial retirement in 2023 and took my pension, I continue to work part time and in November 24 was automatically opted back into the pension scheme (I should have noticed) my employers contribute , however I intend to retire fully in December 2026 so will have been paying in for 2 years . Is it worth my money please , I can’t now opt out I don’t think or at lease without losing what I’ve already paid . Thank you 

Probably just as well you didn't notice or you would probably have opted out, from the sound of things. It may only be 2 years, but you're getting tax relief on your personal contributions and 'free' money from the employer, who will also be contributing. What makes you fear you aren't getting something worth having...? 

Flugelhorn

depends on the rules of the scheme, I know at one point HR in  NHS tried to opt me back in when I was already taking the pension and apparently that was against the rules - however not HR's fault as they didn't know I was already taking my pension

littleone59

 Just felt as it was only for 2 years that I’d be paying out more than I’d get back 

Marcon

littleone59 said:

 Just felt as it was only for 2 years that I’d be paying out more than I’d get back 

If this is a defined contribution scheme (highly likely), then fees are a %age of your 'pot', so that is unlikely in the extreme, especially as you'll have tax relief and employer contributions in addition to your own contributions - but maybe try reading the scheme literature (if you're feeling brave!)?

dunstonh

littleone59 said:

 Just felt as it was only for 2 years that I’d be paying out more than I’d get back 

The is an incorrect assumption.

Free money from the employer plus tax relief.  Good job you missed it and were opted in.

littleone59

Thanks so I will get something back in 2 years ? 

MeteredOut

littleone59 said:

Thanks so I will get something back in 2 years ? 

You can take it anytime once you are 55+, but be aware of the implications of that. But the more you and your employer pay in, the more you're likely to get back.

Marcon

littleone59 said:

Thanks so I will get something back in 2 years ? 

Yes - look at the paperwork you've received (or online) for a projection.

TheTelltaleChart

The OP might be vaguely remembering investment products / pensions in which the first year or two's contributions disappeared in charges, and you got nothing back unless you contributed for longer. AFAIK, it's been a few decades since anything like that was being sold.

Aretnap

littleone59 said:

I can’t now opt out I don’t think or at lease without losing what I’ve already paid . Thank you 

You can opt out any time you like and you won't lose anything that you've already contributed - you just wouldn't  benefit from your employer's contributions and from tax relief going forwards. In effect you would be volunteering to take a pay cut (which would also be what you would have done had you opted out last year)..

Why you would want to do that isn't obvious, but you could absolutely do it if you did want to.