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  • FIRST POST
    • Kayalana99
    • By Kayalana99 8th Sep 17, 2:08 PM
    • 3,417Posts
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    Kayalana99
    Work pension worth it short term?
    • #1
    • 8th Sep 17, 2:08 PM
    Work pension worth it short term? 8th Sep 17 at 2:08 PM
    Sorry to be that person that asks the really simple questions but I'm clueless with these things.

    Is it worth paying into an employee pension if you have no intention of staying there for long? I can't see myself being there more then a year and the contributions would be minimal as I'm on a part-time wage, but I guess if it's really straight forward to transfer I wouldn't leave this job without having another so better to start early?
    People don't know what they want until you show them.
Page 1
    • AnotherJoe
    • By AnotherJoe 8th Sep 17, 4:56 PM
    • 9,890 Posts
    • 11,052 Thanks
    AnotherJoe
    • #2
    • 8th Sep 17, 4:56 PM
    • #2
    • 8th Sep 17, 4:56 PM
    Will your employer make a contribution as well as yours ? If so why turn down free money ?
    • dunstonh
    • By dunstonh 8th Sep 17, 5:17 PM
    • 93,441 Posts
    • 60,962 Thanks
    dunstonh
    • #3
    • 8th Sep 17, 5:17 PM
    • #3
    • 8th Sep 17, 5:17 PM
    I can't see myself being there more then a year
    A phrase often used by many who went on to spend 10-20-30 years with that employer.

    Do you want to turn down free money?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • FatherAbraham
    • By FatherAbraham 8th Sep 17, 9:24 PM
    • 765 Posts
    • 588 Thanks
    FatherAbraham
    • #4
    • 8th Sep 17, 9:24 PM
    • #4
    • 8th Sep 17, 9:24 PM
    Is it worth paying into an employee pension if you have no intention of staying there for long? I can't see myself being there more then a year and the contributions would be minimal as I'm on a part-time wage, but I guess if it's really straight forward to transfer I wouldn't leave this job without having another so better to start early?
    Originally posted by Kayalana99
    Your entire working life will be made up of a long series of short periods. Saving for your retirement in each of them is the easiest way to accumulate a pot of pension assets.

    Warmest regards,
    FA
    • ischofie1
    • By ischofie1 8th Sep 17, 9:34 PM
    • 190 Posts
    • 154 Thanks
    ischofie1
    • #5
    • 8th Sep 17, 9:34 PM
    • #5
    • 8th Sep 17, 9:34 PM
    I have a work colleague who didn't join for the same reason.
    20 years later he's missed out on a valuable DB scheme.
    He's now watching colleagues transfer out at many times what he's been able to accumulate by himself.
    Take it while it's on offer.
    • DigForVictory
    • By DigForVictory 8th Sep 17, 9:58 PM
    • 7,884 Posts
    • 23,481 Thanks
    DigForVictory
    • #6
    • 8th Sep 17, 9:58 PM
    • #6
    • 8th Sep 17, 9:58 PM
    +1 for never walk away from free money.
    Some schemes let you take it all back if you leave within a defined period, so it may just be a savings account, but a pension is always worth having, and the younger you start, the better!
    • Kayalana99
    • By Kayalana99 12th Sep 17, 11:08 AM
    • 3,417 Posts
    • 6,097 Thanks
    Kayalana99
    • #7
    • 12th Sep 17, 11:08 AM
    • #7
    • 12th Sep 17, 11:08 AM
    Thanks for the replies, no I genuinely won't be here in absoulte max 2 years. I think we are talking about 10-15 a month into a pension so didn't think perhaps it was worth having a 300 pension pot unless it was something that could easily be transfered? Otherwise won't it mean for next 40-50 years I'll have to keep record of this ridiculously small pension pot unless it moved to the next company etc?

    Employer puts in the same amount, yes.
    People don't know what they want until you show them.
    • Kayalana99
    • By Kayalana99 12th Sep 17, 11:10 AM
    • 3,417 Posts
    • 6,097 Thanks
    Kayalana99
    • #8
    • 12th Sep 17, 11:10 AM
    • #8
    • 12th Sep 17, 11:10 AM
    A phrase often used by many who went on to spend 10-20-30 years with that employer.
    Originally posted by dunstonh
    I 100% won't be one of them!
    People don't know what they want until you show them.
    • Malthusian
    • By Malthusian 12th Sep 17, 12:04 PM
    • 4,337 Posts
    • 6,843 Thanks
    Malthusian
    • #9
    • 12th Sep 17, 12:04 PM
    • #9
    • 12th Sep 17, 12:04 PM
    Thanks for the replies, no I genuinely won't be here in absoulte max 2 years. I think we are talking about 10-15 a month into a pension so didn't think perhaps it was worth having a 300 pension pot unless it was something that could easily be transfered?
    Originally posted by Kayalana99
    It can be easily transferred, and 300 is worth having when the alternative is 0.

    If you disagree, I will PM you my bank details so you can send me 300.

    Otherwise won't it mean for next 40-50 years I'll have to keep record of this ridiculously small pension pot unless it moved to the next company etc?
    If it's ridiculously small then transfer it to a bigger one. If you haven't got a bigger one, put more in it.
    • Alexland
    • By Alexland 12th Sep 17, 12:45 PM
    • 2,743 Posts
    • 2,085 Thanks
    Alexland
    Take the free money and transfer the pot to your next employer or use it as the starting point to run two pensions in parallel. When you get older you don't want all your eggs in one basket anyway.

    Maybe add some extra voluntary contributions to save some tax and possibly national insurance? When you are young it's the best time to start compounding returns.
    Last edited by Alexland; 12-09-2017 at 12:49 PM.
    • steampowered
    • By steampowered 12th Sep 17, 2:21 PM
    • 2,675 Posts
    • 2,608 Thanks
    steampowered
    Start by estimating the amount of your employer contributions and the amount of tax relief you would receive.

    Divide that by the amount of time it would take to transfer your pension when you leave. 1 hour should be enough.

    That gives you an hourly rate for the time spent mucking about with your pension.

    If you earn 22,000 a year, 1% matching contributions would net you about 264 (including tax relief) over 1 year. Your hourly rate is 264.

    Would you do 1 hour's work for 264? I would.
    • Wookey
    • By Wookey 12th Sep 17, 3:17 PM
    • 807 Posts
    • 407 Thanks
    Wookey
    Thanks for the replies, no I genuinely won't be here in absoulte max 2 years. I think we are talking about 10-15 a month into a pension so didn't think perhaps it was worth having a 300 pension pot unless it was something that could easily be transfered? Otherwise won't it mean for next 40-50 years I'll have to keep record of this ridiculously small pension pot unless it moved to the next company etc?

    Employer puts in the same amount, yes.
    Originally posted by Kayalana99
    The pension provider will have to post you a yearly update on it's value, in 30 or 40 years time that could have grown substantially without you having to lift a finger. If you stay 2 years and your employer matches the amount then at 15 a month from you that would be 660 in two years, at 5% growth over 30 years you would have around 2800 in the pot without any further payments being made into it.
    Norn Iron Club member No 353
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