Pensions and that

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Frijj

Frijj

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I know bot all about most things but pensions especially

Hypothetically speaking if I had a two year contract with an employer and was earning enough to make pension contributions, would it be worth it if I'm only there two years or would it be better to put that money into something else

As stated, I know nowt about pensions...
 


The total pension pot will be worth almost sod all monthly unless you can transfer it to your next employer to contribute towards.
 
It depends on loads of things. What your priorities are, how much the employer will contribute against your sacrifice, how much you're allowed to chip in from your gross etc.
 
Kevj said:
The total pension pot will be worth almost sod all monthly unless you can transfer it to your next employer to contribute towards.
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Is that a thing?

I already have about £500 stuck in a previous employer's pension scheme that I can't access until I'm 55 :rolleyes:

How do pensions work if you're not in the same organisation your entire career?
 
Frijj said:
I know bot all about most things but pensions especially

Hypothetically speaking if I had a two year contract with an employer and was earning enough to make pension contributions, would it be worth it if I'm only there two years or would it be better to put that money into something else

As stated, I know nowt about pensions...
Click to expand...
The basic thing to remember is you pay in your working life then some snotty little oik cries "why should you have whats yours. I should have that"
;)
 
Frijj said:
Is that a thing?

I already have about £500 stuck in a previous employer's pension scheme that I can't access until I'm 55 :rolleyes:

How do pensions work if you're not in the same organisation your entire career?
Click to expand...

Employer contribution pensions promote loyalty. You would be better off contributing to a private pension across many employers if you plan to move around regularly. Or invest in property and let the tennants pay your mortgages.
 
Frijj said:
Is that a thing?

I already have about £500 stuck in a previous employer's pension scheme that I can't access until I'm 55 :rolleyes:

How do pensions work if you're not in the same organisation your entire career?
Click to expand...

If it is within a certain timeframe you can reclaim all payments you have made under certain schemes.
 
1 - You get to put it away before you pay tax on it - WIN
2 - Usually the employer will add some money too, often they'll match it - WIN

So yes, it is worth it.
Keep a record of the company running the pension scheme and your account details. Consider if its worth having either a personal pension that you move all of your "closed" pensions into, or simply move everything with you to the new one each time you move jobs.

Take advise on that though, as fees and risk profiles could be important to understand.
 
girojim said:
If it is within a certain timeframe you can reclaim all payments you have made under certain schemes.
Click to expand...

Didn't realise that. Those contributions go back from 2014-2016. I did email them as I thought it was money just wasting away but they gave me a stock response of no withdrawals before 55 unless I pay some highly punitive rate of tax on it

PTR said:
1 - You get to put it away before you pay tax on it - WIN
2 - Usually the employer will add some money too, often they'll match it - WIN

So yes, it is worth it.
Keep a record of the company running the pension scheme and your account details. Consider if its worth having either a personal pension that you move all of your "closed" pensions into, or simply move everything with you to the new one each time you move jobs.

Take advise on that though, as fees and risk profiles could be important to understand.
Click to expand...

Sounds like something to discuss with HR!

Cheers
 
Frijj said:
I know bot all about most things but pensions especially

Hypothetically speaking if I had a two year contract with an employer and was earning enough to make pension contributions, would it be worth it if I'm only there two years or would it be better to put that money into something else

As stated, I know nowt about pensions...
Click to expand...
If your employer also contributes then that is "free money" added to which your contribution is tax free, you need to understand who the provider is and what funds you can put the money into (unless it is a Final salary/CARE plan which if it is snap their arm off). As has been said you can transfer other pension entitlements in, usually.
 
Frijj said:
I know bot all about most things but pensions especially

Hypothetically speaking if I had a two year contract with an employer and was earning enough to make pension contributions, would it be worth it if I'm only there two years or would it be better to put that money into something else

As stated, I know nowt about pensions...
Click to expand...
You save tax on your pension payments and employer will make a contribution so has to be a winner.
If linked to stock market it is high atm but likely to fall with the uncertainty so not gain massive lift but still worthwhile
 
If you've odds and ends of Pensions all over, speak to a pensions expert, they will collect them all together into one pot - it could be some of the small amounts are sitting doing nowt and could be put to work elsewhere to get you a better return - it almost always pays to invest in a pension, you don't want to end up an owld bugger with no money
 
Stop paying in to the pension scheme.

Set up a company, Clockstand92.

Take you pension money and put in a bid to buy SAFC.
 
Best to check what the employer is going to offer. Employer matched contributions for example is free money. So you are effectively doubling what you pay in. In that case it's a no brainer. Under the auto enrolment rules most employers are now obligated to offer a work based pension and those that are not have their staging dates coming up very soon.

I agree if you have lots of small defined contribution pots (non final salary or 'defined benefit') from previous jobs it could be worthwhile consolidating.
 
Frijj said:
Didn't realise that. Those contributions go back from 2014-2016. I did email them as I thought it was money just wasting away but they gave me a stock response of no withdrawals before 55 unless I pay some highly punitive rate of tax on it



Sounds like something to discuss with HR!

Cheers
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Just remember, the banking crisis happened in part because everybody wanted aggressive investments made on their pensions.

I know you're a lefty, so bear this in mind.
 
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