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Auto enrolment charges 50% in first year?
Ex_Gas_Guzzler
Posts: 125 Forumite
Our pension advisor appointment was arranged for me today at work
To join the scheme the minimum I can put in is 3% and the company will put in 3%, I thought the minimum was 1% but I was told our company has set the minimum as 3%, the advisor made a call in front of me to confirm it with his office. The form I signed had the % left blank, I asked about it and he said he would fill it in afterwards
He also made me aware that I would be charged a fee of 50% in the first year rather than 10% per year for 5 years
I just wonder if what I have been told sounds correct
Many thanks
To join the scheme the minimum I can put in is 3% and the company will put in 3%, I thought the minimum was 1% but I was told our company has set the minimum as 3%, the advisor made a call in front of me to confirm it with his office. The form I signed had the % left blank, I asked about it and he said he would fill it in afterwards
He also made me aware that I would be charged a fee of 50% in the first year rather than 10% per year for 5 years
I just wonder if what I have been told sounds correct
Many thanks
;)Thanks;)
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Comments
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This is totally wrong. Its completely down to you what you want to contribute but the minimum has to be 1%. That's the same with your employer but either of you can increase this AT YOUR OWN DISCRETION. As for charges, You may wanna check the fee because with the scheme that we put our clients into the fee is around 0.50%, that's a significant difference. Something doesn't sound quite right0
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My 21-year old daughter has just started her first part-time job. The employer has a pension scheme, and I said that she should seriously look at joining it in order to take advantage of the employer contributions. However, as my daughter is likely to move jobs quite frequently, the employer has advised her that joining the pension scheme may not be to her advantage as there would be a significant set-up cost taken from her pension pot in the first year. This sounds counter-intuitive in an employment world of ever greater changing of jobs during a person's life, and I thought that the maximum management fee for such was %1 per annum. Any advice, please?0
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Which pension scheme would be on offer to your daughter?
How much does she expect to earn per week/month?0 -
Ex_Gas_Guzzler wrote: »Our pension advisor appointment was arranged for me today at work
To join the scheme the minimum I can put in is 3% and the company will put in 3%, I thought the minimum was 1% but I was told our company has set the minimum as 3%, the advisor made a call in front of me to confirm it with his office. The form I signed had the % left blank, I asked about it and he said he would fill it in afterwards
He also made me aware that I would be charged a fee of 50% in the first year rather than 10% per year for 5 years
I just wonder if what I have been told sounds correct
Many thanks
Why did you sign a blank form - why not insist he (or you) filled it in first? As to making the call in front of you - oldest trick in the book when trying to flog something to the unwary. Just about everything sounds wrong here; give the Pensions Advisory Service a call for free, impartial help: http://www.pensionsadvisoryservice.org.ukGoogling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
Kim_Balshaw wrote: »My 21-year old daughter has just started her first part-time job. The employer has a pension scheme, and I said that she should seriously look at joining it in order to take advantage of the employer contributions. However, as my daughter is likely to move jobs quite frequently, the employer has advised her that joining the pension scheme may not be to her advantage as there would be a significant set-up cost taken from her pension pot in the first year. This sounds counter-intuitive in an employment world of ever greater changing of jobs during a person's life, and I thought that the maximum management fee for such was %1 per annum. Any advice, please?
Yes; get her to call the Pensions Advisory Service (while we still have it!) - no charge except the cost of the call, they don't sell anything and they will talk her through/explain to her the questions she needs to ask her employer to get the true facts: http://www.pensionsadvisoryservice.org.ukGoogling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
Kim_Balshaw wrote: »My 21-year old daughter has just started her first part-time job. The employer has a pension scheme, and I said that she should seriously look at joining it in order to take advantage of the employer contributions. However, as my daughter is likely to move jobs quite frequently, the employer has advised her that joining the pension scheme may not be to her advantage as there would be a significant set-up cost taken from her pension pot in the first year. This sounds counter-intuitive in an employment world of ever greater changing of jobs during a person's life, and I thought that the maximum management fee for such was %1 per annum. Any advice, please?
Naughty employer! There are strict rules against encouraging employees to opt-out.0
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