Mandatory Ponzi scheme enrolment

anything I don't mind · 22 Aug 2013 at 14:05

I just received an email from work saying that the wonderful state is forcing me to "contribute" towards a private pension. As if i didn't have enough reason to hate the government already. Here are the details:

Automatic enrolment into the company pension scheme is on its way. From May 2014 a new government scheme will mean you are enrolled into a workplace pension automatically.

Terms of Automatic Enrolment:
Employee contribution 1% of salary
Employer contribution 1% of salary

Company specific terms:
Employer matched contribution of up to 5% of salary, this is capped at £200 per month.
50% National Insurance Saving on Salary Sacrifice Contribution

https://www.gov.uk/browse/working/workplace-personal-pensions

Benefits of Pension Contributions:
25% of gross value of pension fund can be withdrawn tax-free when you reach your pensionable age.
Additional funds over and above your state pension.
Tax relief on employee contributions

Sounds to me like the state has finally realized that their state run ponzi scheme pension national insurance does not have enough money in it to meet the unfunded liabilities. So as a result of their ponzi scheme being on the verge of collapse, they have decided to force private employees to "contribute" in to a private ponzi scheme so that the government's ponzi scheme is not the only ponzi scheme that people are depending on.

So my question is, can anyone explain to me what they mean by: "50% National Insurance Saving on Salary Sacrifice Contribution" ?

Either way its going to result in the government getting more money and myself losing more money. Thanks government

Xordium · 22 Aug 2013 at 14:06

If you hate it here so much why not go back to South Africa?

G-MAN2004 · 22 Aug 2013 at 14:08

That's life.

Monkeynut · 22 Aug 2013 at 14:08

Stop being a muppet and just opt out.

anything I don't mind · 22 Aug 2013 at 14:09

Its mandatory :confused:

Yaayuh! · 22 Aug 2013 at 14:09

But... you're paying into your pension :confused:

What's bad about this? Am i missing something?

groen said:
Its mandatory

No it's not.

https://www.gov.uk/workplace-pensions/if-you-want-to-leave-your-workplace-pension-scheme

Yaayuh! · 22 Aug 2013 at 14:10

double post. Delete.

platypus · 22 Aug 2013 at 14:10

groen said:
I just received an email from work saying that the wonderful state is forcing me to "contribute" towards a private pension. As if i didn't have enough reason to hate the government already. Here are the details:

Sounds to me like the state has finally realized that their state run ponzi scheme pension national insurance does not have enough money in it to meet the unfunded liabilities. So as a result of their ponzi scheme being on the verge of collapse, they have decided to force private employees to "contribute" in to a private ponzi scheme so that the government's ponzi scheme is not the only ponzi scheme that people are depending on.

So my question is, can anyone explain to me what they mean by: "50% National Insurance Saving on Salary Sacrifice Contribution" ?

Either way its going to result in the government getting more money and myself losing more money. Thanks government

Do realise how many people are screwed by not having any savings for retirement? Or how many small companies get away with not offering pension schemes?

"50% NI Savings on Salary Sacrifice Contributions" means exactly that. Your company will get a deduction of 50% from the NI contributions on the part of your salary that you sacrifice to the pension scheme.

Opt out or move somewhere they don't give a damn about saving for your retirement.

anything I don't mind · 22 Aug 2013 at 14:11

The government is forcing me to join a ponzi scheme. I don't want to lose 1% of my salary every month.

Yaayuh! · 22 Aug 2013 at 14:12

groen said:
The government is forcing me to join a ponzi scheme. I don't want to lose 1% of my salary every month.

First of all, go off and read about what a pension is and then come back to this thread.

anything I don't mind · 22 Aug 2013 at 14:12

platypus said:
Do realise how many people are screwed by not having any savings for retirement? Or how many small companies get away with not offering pension schemes?

"50% NI Savings on Salary Sacrifice Contributions" mean exactly that. Your company will get a deduction of 50% from the NI contributions on the part of your salary that you sacrifice to the pension scheme.

Opt out or move somewhere you're not "forced" to save for your retirement.

hmm, still not understanding it. Do i benefit from it? are you saying that if i pay £100 towards this ponzi scheme then I will pay £50 less towards the state run ponzi scheme national insurance?

platypus · 22 Aug 2013 at 14:13

Dunno why I'm biting but..

groen said:
The government is forcing me to join a ponzi scheme.

They aren't.

I don't want to lose 1% of my salary every month.

You aren't losing 1% of your salary every month.

platypus · 22 Aug 2013 at 14:14

groen said:
hmm, still not understanding it. Do i benefit from it? are you saying that if i pay £100 towards this ponzi scheme then I will pay £50 less towards the state run ponzi scheme national insurance?

National insurance is paid by your employer. This is a benefit to them, in order to soften the blow of the cost of running an employee pension scheme and the contributions they have to make to it.

Do you benefit from it? I guess only you can make that decision. Would you rather have a salary when retired or not?

anything I don't mind · 22 Aug 2013 at 14:14

Terms of Automatic Enrolment:
Employee contribution 1% of salary
Employer contribution 1% of salary

Employee "contribution" 1% ie im losing 1% of my salary through mandatory ponzi scheme enrolment.

National insurance comes out my salary every month.

Adsta · 22 Aug 2013 at 14:14

groen said:
The government is forcing me to join a ponzi scheme. I don't want to lose 1% of my salary every month.

You are not forced to join anything. Just opt out

https://www.gov.uk/workplace-pensions/if-you-want-to-leave-your-workplace-pension-scheme

You can opt out by contacting your pension provider. Your employer must tell you how to do this.

That said how much is 1% of your salary ? is it not worth putting that into a pension so when you do get old (which is inevitable) and want to retire you have a pension to use rather than nothing to live on ?

Still each to their own.

Sui · 22 Aug 2013 at 14:15

You're not actually losing 1%, if you opt in and live out your retirement/pension you're actually gaining money?

Just opt out, if you're worried about 'losing money'.

MickeyFinns · 22 Aug 2013 at 14:15

Just opt out if you're unhappy with it. End of story.

platypus · 22 Aug 2013 at 14:16

groen said:
Employee "contribution" 1% ie im losing 1% of my salary through mandatory ponzi scheme enrolment.

No you are not. You are saving 1% of your salary, along with tax relief and so make money on it, in order to facilitate paying for your retirement.

Or are you happy being a burden on the state?

Theophany · 22 Aug 2013 at 14:17

The derp is strong in this one.

anything I don't mind · 22 Aug 2013 at 14:20

Putting money in a ponzi scheme is not saving, its waste of money. As inflation will destroy the value. There is no benefit from throwing money away in to a ponzi scheme every month. Yes i will try to opt out, thanks for pointing that out, my employer never mentioned that i can opt out.

If i could opt out of the national insurance i would as well. Unfortunately that ponzi scheme is not opt out-able.