Workplace pension opt in or out

Dustbin1963

I'm a 61 yr old retired police Inspector but I work as an Exam Invigilator earning less than £3k a year on a casual employment contract. My Council employer has auto enrolled me in the workplace pension and I feel that I need to opt out as the benefits over the next (max) 5 years are small compared to my existing pension and state pension. Any thoughts would be welcomed.

Uriziel

A pension has two benefits. The pension company invests your money and provides you a return. Your employer also pays into the pension which is usually double what you put in from your salary so if you opt out you are not only losing out your part but theirs as well. You seem to be 5 years away from retirement. Another benefit is that if you are close to a different tax band you can reduce your tax but if you only get paid £3k a year you obviously do not pay tax.

I think this is up to you. Technically it always pays off because of the two points but since you are only being paid £3k a year you might want to use this money for your living expenses. If you need the money now I would opt out but if you can afford it and you are in somewhat good health and expect to live for another decade or two I would just keep the pension even if it is probably very insignificant.

You also write that you think that your existing pensions are sufficient but you need to bare in mind that the cost of living is increasing at a rapid rate. 5 years ago I used to buy McDonald's breakfast for £1.69 and now the same item is £3.69. While it may seem enough now I think your opinion will change 5 years from now.