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Worth it for over 50's?
HoolyNI
Posts: 256 Forumite
Have just had my introduction pack from NEST and am wondering, as I just turned 50, if this pension is likely to provide much of a boost to my pension income in the space of 17 years?
Am reluctant to opt out and miss out on my employers contributions but at the end of the day they wont really amount to much...
Am reluctant to opt out and miss out on my employers contributions but at the end of the day they wont really amount to much...
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Comments
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Yes, it is. As some of it will be Free money from your employer and you will get tax relief on top. Does your employer use Salary sacrifice? This gives you your NI contribs back too.
How much will your employer put in each month? Times that by 12, then times 17 years. This will just be the bit (w/o investment growth which over 17 years you should see) that you are flushing down the Swanney?
Dont forget that the employers contribs will most likely rise over the next few years as well.
Do it, it will be worth it in the end.0 -
Re new state pension
https://www.gov.uk/new-state-pension/overview
I should think you'd like a little bit on top?
Turning down an employer contribution is rather like taking a voluntary salary cut?
And contributions will increase......0 -
As your employer matches your contributions it's essentially free money, with tax relief on top. Your objection essentially seems to be that it's not a lot of money, which might be true, but a little bit of free money is still better than no free money.
The main disadvantage of saving money in a pension is that you can't withdraw it until you're at least 55, and for some people that might outweigh the fact that they get free money on top of what they contribute themselves. However that disadvantage diminishes as you get older - you're only 5 years from being able to access it. (Whether it's a good idea to withdraw it that soon is another question, but it would be available then if you did need it).0 -
Have just had my introduction pack from NEST and am wondering, as I just turned 50, if this pension is likely to provide much of a boost to my pension income in the space of 17 years?
Free money from the employer is always going to beat no free money.but at the end of the day they wont really amount to much...
17 years is still a fair bit of time.
One assumes you have other pension provision you are paying into. Think of this as a top up as you are probably behind where you ought to be (most people dont pay enough).I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks all for your input.
I decided to go ahead with it in the end....just cant seem to find how much of a lump sum figure they would pay to my spouse in the event of my untimely demise...I presume whatever the balance of my fund is at that particular time.0 -
I decided to go ahead with it in the end....just cant seem to find how much of a lump sum figure they would pay to my spouse in the event of my untimely demise...I presume whatever the balance of my fund is at that particular time.
https://www.nestpensions.org.uk/schemeweb/NestWeb/public/members/contents/nominate-a-beneficiary.html0 -
Hi dont forget too, with the new pension freedoms, you can almost post 55 treat the pension as a very tax efficient saving pot - withdrawing money when you need it.
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