Workplace Pension Opt-Out

QlimaxUK · 23 Sep 2014 at 18:37

IT HAPPENED!!!! :eek:

Everyone at my work has now been auto-enrolled in this pension scheme thing and I (and most others) want to opt-out of it, whats the best way to go about this? Is it best to do it online/phone or via the workplace itself?

and what does everyone here think of this, is it worth it? or is it better to just save it in an ISA or something...

Spook187 · 23 Sep 2014 at 18:38

You should have got a letter from your employer about opting out before the date started.

Duke · 23 Sep 2014 at 18:39

Why have you decided to opt out but then ask whether to or not after?

Jokester · 23 Sep 2014 at 18:39

Bad idea to opt out, don't employer's have to add to it as well?

QlimaxUK · 23 Sep 2014 at 18:43

Duke said:
Why have you decided to opt out but then ask whether to or not after?

I am at least 90% certain that opting out is best would would still like to keep an open mind about the matter

QlimaxUK · 23 Sep 2014 at 18:45

Spook187 said:
You should have got a letter from your employer about opting out before the date started.

Does a small note on the wageslip a week before that many didn't read count as a 'letter'?

Jokester · 23 Sep 2014 at 18:45

QlimaxUK said:
I am at least 90% certain that opting out is best would would still like to keep an open mind about the matter

Are your employer's paying into the scheme at all?

AtticusFinch · 23 Sep 2014 at 18:46

Opting in is almost always better in the long run

QlimaxUK · 23 Sep 2014 at 18:48

Jokester said:
Are your employer's paying into the scheme at all?

I would assume so, they didn't really explain anything to us about it as they don't really tell us much about anything..

booyaka · 23 Sep 2014 at 18:48

You have to be automatically enrolled into the scheme and the 1st payment is taken (you can NOT avoid this), you must then inform your employer within 30 days of your 1st premium going in that you wish to opt-out.

You employer should be able to direct you to the relevant forms to complete either via them or the scheme administrators.

If you opt out before the 1st 30 days are up you will get back your own contribution, if after that, you won't.

Remember that your employer is legally required to opt you back in 3 years from the date you opted out and that you must again opt out at that stage again.

ci_newman · 23 Sep 2014 at 18:49

AtticusFinch said:
Opting in is almost always better in the long run

This, as your employer has to contribute too. It comes from your pre-tax salary too, so the impact on your take-home pay is reduced too (as you pay less tax)

AndyT · 23 Sep 2014 at 18:49

Opt in. Can't see why you wouldn't want to provide for your future? I probably stand alone in that I don't want to be paying benefits to people who were too short sighted to think ahead.

booyaka · 23 Sep 2014 at 18:50

QlimaxUK said:
I would assume so, they didn't really explain anything to us about it as they don't really tell us much about anything..

They should have communicated all the information to you, either that or it's classed as a breach of the auto enrollment process.

http://www.thepensionsregulator.gov.uk/employers/writing-to-staff-about-automatic-enrolment.aspx

Jokester · 23 Sep 2014 at 18:50

QlimaxUK said:
I would assume so, they didn't really explain anything to us about it as they don't really tell us much about anything..

All things being equal if your employer is paying in, in the long run you're better off not opting out.

ShakenNstirred · 23 Sep 2014 at 19:12

I don't see a reason to opt out
whatever I pay my employer puts in double that.
at the moment mine is £15 and they add £30 to that

Sirrel Squirrel · 23 Sep 2014 at 19:20

I think in most cases you are better off opting in. My employer matches up to 5% and if you're on salary sacrifice you don't pay NI or tax on that amount (although some employers keep this for themselves whereas mine adds it to the pot).

Rroff · 23 Sep 2014 at 19:26

As things stand right now your better off I think not opting out aslong as your employer also contributes (mine matches upto 9% of salary).

I used to pay it all into my own scheme and/or ISA but now rates have fallen so low there is no real benefit to that over also using company scheme :|

Ragnahex · 23 Sep 2014 at 19:38

ask to see the terms related to the pension however i would agree with people on here and say don't opt out. Every little helps later in life

anything I don't mind · 23 Sep 2014 at 19:40

It is easier to just make the monthly amount as low as it can go, as if you jump through the hoops to cancel it, they just recreate it a few years later and you have to do it again.

They take £20 a month from me i think it is.

Government and insurance companies laughing all the way to the bank.

Captain · 23 Sep 2014 at 19:43

We pay 11% a week from our wages into a pension and our company match it, you'd be silly not to.